News / Victory for US truckers, who can now choose their own chassis provider

© Andrey Popov

The US Federal Maritime Commission (FMC) has ruled in favour of the American Trucking Association (ATA), upholding a decision allowing US truckers to choose their own chassis provider.  

The association said: “ATA’s Intermodal Motor Carriers Conference (IMCC) hailed yesterday’s action by the full FMC to uphold the 2023 decision of an FMC administrative law judge that this conduct violated the Shipping Act.” 

The IMCC filed a complaint with the FMC in August 2020, alleging that the Ocean Carrier Equipment Management Association (OCEMA), Consolidated Chassis Management and 11 of the largest ocean carriers “denied trucking companies choice when leasing the essential chassis equipment, forcing unjust and unreasonable prices upon trucking companies”. 

US truckers require a chassis to transport containers between ports, rail yards, container depots and delivery locations. They are essential, but often in short supply, thus leaving truckers unable to collect boxes and generating high demurrage fees. 

ATA’s EVP for advocacy, Bill Sullivan, estimated this had cost US truckers and consumers some $1.8bn between 2017 and 2020.  

Operational restrictions on chassis usage are known as “box rules”, which limit the already slim choice of chassis and exacerbate the shortage. Box rules are imposed by the equipment providers, many of which are also vessel-operating ocean carriers. 

ATA chairman Randy Guillot revealed the IMCC had tried to avoid legal action by sending a ‘cease-and-desist’ letter to the OCEMA in May 2020, but had been ignored. 

He said: “So far OCEMA and its members have rejected all our attempts to reach a fair and equitable arrangement, but we believe they’ll have less success ignoring the FMC.” 

Indeed, on 6 February last year, an FMC judge ruled that requiring motor carriers to use specific intermodal chassis providers to move containers violated the Shipping Act. Yesterday, the FMC upheld this decision, and denied the reversal requested by Evergreen and other respondents in March 2023.  

The FMC ruling ordered “respondents to cease and desist from designating an exclusive chassis provider; enforcing rules that restrict motor carriers to the chassis provider the ocean common carrier has chosen; and practices that lock-in the motor carrier to the chassis provider the ocean carrier selected”.  

The four test regions addressed in the order are Chicago, Los Angeles/Long Beach, Memphis and Savannah. Other US regions are likely to follow.  

IMCC executive director Jonathan Eisen concluded: “With details to be finalised by the [judge], hard-working American trucking companies will now be able to choose their chassis providers, rather than being taken advantage of by a cartel of overseas shipping lines.  

“The FMC has taken action to reduce supply chain delays and cut costs for motor carriers and consumers.”