Understanding the Chassis Split Fee

In the logistics industry, efficient container management is critical to ensuring smooth operations and minimising costs. One significant expense shipper often face is the chassis split fee, which occurs when a chassis (the trailer component that carries a container) is separated from the container itself. Optimising container flows and avoiding chassis splits can result in significant cost savings for companies.

This article explores the intricacies of chassis splits, shedding light on how they occur, the associated fees charged by companies such as FreightAmigo, and strategies to mitigate or avoid these fees. By understanding this concept, shippers can make informed decisions to streamline their container logistics and improve operational efficiency.  

What is a Chassis Split?

Chassis split refers to a situation where the freight container and the truck chassis (the trailer component that carries the container) are separated during the delivery process. This can occur for a number of reasons, primarily when the port or terminal does not have enough chassis to accommodate the incoming containers. There are two main types of chassis splits:

1. Pick-up Split: This happens when the container is picked up from its origin, but the chassis used for transportation is obtained from a different location.
2. Return Split: In this case, the container is returned to its destination, but the chassis is dropped off at a separate location from the container’s final destination. 

The Logistics Behind Chassis Splits

Chassis splitting is a common practice in the logistics industry, particularly in the management of complex supply chains and distribution networks. The primary purpose is to optimise the use of transport resources and achieve cost savings for shippers.

Essentially, chassis splitting involves dividing a full truckload into smaller partial loads, which are then transported separately to their respective destinations. This strategy allows for more efficient use of transport capacity, reduced transport costs and improved delivery times. 

Chassis Split Fees

Chassis splits, while a logistical necessity, can incur additional costs for shippers. FreightAmigo‘s transparent approach ensures that customers are aware of these charges and their impact.

1. Chassis Split Fee: This fee is charged when the trucker must make an additional trip to pick up or return the chassis from a location other than where the container is located. Typically ranging from $50 to $100 per split, this fee offsets the additional labour and fuel costs incurred by the trucking company.
2. Potential delays and associated costs: Chassis splits can cause delays in shipping, especially if the required equipment is in high demand. These delays can lead to missed deadlines, resulting in demurrage and detention charges, which can further increase the overall cost of transportation.
3. Chassis usage fees: In addition to the split fee, shippers may also encounter chassis usage fees, which are charges levied when a shipping container is loaded onto a chassis for transport from the port to the destination. These fees can vary based on factors such as the number of axles on the chassis, whether it’s a port rental, a chassis pool or a carrier/3PL, and additional charges such as triaxle or repositioning fees. 

FAQs

A split chassis fee is charged by the trucking company when the container and its chassis are located at different places. This fee typically ranges from $50 to $110, covering the cost for the trucking company to retrieve the chassis and transport it to the container’s location.The chassis fee is applied when your shipment is transported by truck, such as after arrival at an ocean port and en route to a warehouse. For Full Container Load (FCL) shipments, it is a fixed fee that varies depending on the trucker. For Less than Container Load (LCL) shipments, the fee is calculated based on the cargo’s volume.A chassis repositioning fee is a charge incurred for moving empty chassis between various locations to ensure an even distribution of equipment within the logistics network.To avoid chassis splits, you can opt to use your own chassis for picking up the container. This approach prevents the additional cost associated with using a chassis provided by another company and is generally more convenient.

Have a problem with the Chassis Split Fee? Contact FreightAmigo now for more details!

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