Trac Intermodal Readies 200,000 Chassis for Influx of China Containers

Preparation for a Container Surge

A significant and imminent rise in container volume from China is on the horizon, and a leading chassis provider is rolling up its sleeves to meet the demand. Trac Intermodal is gearing up to handle this surge, specifically anticipating a considerable influx of container imports arriving in the United States during late June and early July.

Proactive Measures and Strategic Planning

Jake Gilene, Executive Vice President and Chief Commercial Officer of Trac, emphasized the company’s commitment to preparing for the anticipated volumes by actively collaborating with customers and examining their forecasting data. “We’re preparing for a bounce back of volume this summer,” he remarked during a conversation with industry leaders.

With a robust fleet of 200,000 domestic, marine, and specialty chassis, Trac’s team is focused on ensuring that they have the right chassis available in strategic markets and is working diligently to coordinate those efforts across various ports and terminals.

Chassis Reserves Post-Pandemic

Reflecting on the supply chain crises influenced by the pandemic, Gilene noted that Trac has taken significant steps, such as establishing strategic chassis reserves in collaboration with major railroads. This initiative aims to be prepared for any unexpected events that could disrupt supply chains.

Location Specificity and Fleet Resiliency

To cultivate sufficient fleet resiliency across the country, Trac has identified key locations where demand indicates a necessity for safety stock. Moreover, in addition to participating in various neutral chassis pools nationwide, Trac also operates private pools with ocean carriers, showcasing its versatility within the industry.

Repositioning Resources During Downturns

During a lull in Chinese trade caused largely by tariff disputes, Trac seized the opportunity to reposition its chassis effectively. Chassis that were upgraded yet sitting idle in California were relocated to the Midwest, where they could better serve fleets affected by harsh winter conditions.

As a result of these strategic movements, Trac is now anticipating higher-than-normal container volumes this June. “The ocean services that were suspended are being reinstated, and schedules are now booked,” said Gilene. His insight reflects the company’s agility and dedication to staying ahead of market fluctuations. The mix of goods, according to customer conversations, consists mainly of items that were ready for shipping, as well as new production output.

Monitoring Dwell Times for Efficiency

One metric that Trac is keenly monitoring is dwell time, which refers to the amount of time a chassis remains at a location before it is loaded or dispatched. Historically, average dwell times fluctuated between six to seven days, with significant increases noted during the pandemic, sometimes reaching four times higher than the norm.

Such fluctuations can directly influence chassis availability, prompting the necessity for strategic planning. The overarching concern is understanding how long this anticipated surge will last.

Learning from Past Crises

Gilene reflects on the unpredictable nature of supply chain recovery, suggesting that varying timelines for backlog recovery could impact operations significantly. For instance, a three-month supply chain shutdown during the pandemic resulted in a staggering recovery time of 18 months. With the lessons learned, Trac is proactively engaging in repairs and evaluations of chassis while exploring potential expansions of their reserves where needed.

Changes in Carrier Dependencies

As a noteworthy shift, more motor carriers are opting to acquire their own chassis. This transition signifies reduced reliance on shared pools, thus reshaping the parameters of logistics operations. In December, industry analysts at Moody’s adjusted their outlook for Trac, citing that tariff risks continue to loom over import volume growth.

Conclusion

The approach taken by Trac Intermodal exemplifies a robust and proactive strategy within the logistics landscape. Such foresight not only addresses the challenges of container influx but also proposes solutions that minimize disruption to supply chains, which could have cascading effects on international logistics.

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