WE CARRY THE FUTURE SM
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1 Date: October 12, 2011 Subject: Change in US Chassis Dynamics and Operations with Q & A HMM has made the decision to stop supplying chassis in below mentioned locations. This new policy will improve safety and turn times in inland depots, ocean terminals and rail facilities. Importantly, it will also increase the usable space for containers at these facilities. The supply chain should function more efficiently as a result. The following are Phase 2 designated locations as of: November 15, 2011 Minneapolis, MN New York, New Jersey Denver, CO Salt Lake City, UT December 1, 2011 Oakland, CA January 1, 2012 Seattle, WA Tacoma, WA Portland, OR Norfolk, VA GENERAL INFORMATION Q: What other ocean carriers have implemented this change? A: Maersk, OOCL, China Shipping, ACL, NYK, CMA-CGM, Evergreen, Cosco, Yang Ming, Happag Lloyd, CSAV, Hamburg Sud, have already implemented or announced plans to initiate similar programs. Q: How this program will work? A: HMM will not provide chassis in above mentioned locations. Therefore, in the case of merchant haulage, truckers will need to obtain a chassis from any of the various supply sources or provide their own equipment. When carrier haulage is involved, HMM agrees to arrange and to pay for the chassis rental.
2 Q: Can a drayman use his or her own chassis? A: Yes, a drayman can use his or her own chassis as long as the equipment conforms to FHWA standards and meets requirements of roadability at marine terminals and rail facilities. CARRIER HAULAGE Q: Who pays for the chassis rental when the move is arranged by HMM (Carrier Haulage)? A: HMM will be arranging for and covering the cost for the chassis rental within the free time as applicable provided that HMM makes and issues the drayage order through Hyundai Intermodal (HII). Q: How will the rental charge be applied for the period in excess of the free days in Carrier Haulage move? A: In a carrier haulage move, both the container detention and additional chassis rental charges will be assessed by HMM to customers when the free time is exceeded. The current process of billing container detention will not change as far as the carrier haulage is concerned. Both charges will be stipulated in the HMM tariff or contacts as applicable as is current practice.. Q: If CHASSIS rental period exceeds the free time as stipulated in Carriers tariff or contracts will chassis rental be covered? A: HMM will fully reimburse trucker for actual days that the chassis is used. MERCHANT HAULAGE Q: Who pays for the chassis when the move is arranged by the customer (merchant haulage)? A: In merchant haulage moves, the customer and the trucker arrange to move the container and the terms of the rental agreement for the chassis are their responsibility and obligation. HMM will not be involved in providing chassis in these locations. Q: What is the free time for a chassis in a merchant haulage move? A: HMM is neither involved in providing a chassis, nor involved in how much free days is given for the chassis. CONTAINER detention and free time, however, will still apply based upon the HMM tariff or contracts. Q: Who will get charged a detention fee for the container or chassis rental on a merchant haulage move? A: In a merchant haulage move, the container detention charge will be applied when the free time is exceeded, and will be invoiced by HMM to the trucker.
3 Chassis rental in a merchant haulage move will be an issue to be negotiated between the customer and the trucker as HMM will not be involved in supplying the chassis Q: Can a drayman use his or her own chassis? A: Yes, a drayman can use his or her own chassis as long as the equipment conforms to FHWA standards and meets requirements of roadability at marine terminals and rail facilities. Any charges such as rail flips or special handlings associated with the use of truckers own wheels will be for the account of the trucker. Additional notes 1) How does a drayman/trucker obtain a chassis? The drayman/trucker can use their own chassis or obtain one through any of the chassis providers as noted on the table below, to which the motor carrier has to establish a chassis lease agreement with the chassis provider which can be done via their web site or direct contact. Trac Intermodal Web site CNS Logistics - Web site Chassis availability at below locations Is lease possible to trucker? Contact Point Location Pool Type Chassis provider New York, Pool (Trac) -Maher, Global Terminals Trac ( Metro pool) (A) (If possible, what is required to use chassis? Name Tel Yes / Need to make contract Kathy Kirk kkirk@tracintermodal.com New Jersey All other locations CNS (B) Yes / Need to make contract James No jamesno@cnslogistics.net Norfolk, VA VIT Hampton roads Yes / Need to make contract Artie Ellerman aellermann@hrcp2.org Minneapolis, MN Pool (Trac) TRAC Yes / Need to make contract Kathy Kirk kkirk@tracintermodal.com Denver, CO CCM pool ( DCCP) CNS Yes / Need to make contract James No jamesno@cnslogistics.net Salt Lake City, UT Oakland, CA Pool ( TNWA) CNS Yes / Need to make contract James No jamesno@cnslogistics.net Seattle, WA Tacoma, WA Pool ( TNWA ) CNS Yes / Need to make contract James No jamesno@cnslogistics.net Portland, OR CNS CNS Yes / Need to make contract James No jamesno@cnslogistics.net
4 1)A- New York, New Jersey ( at Maher / Global Terminals) : Metro Pool - TRAC Intermodal is chassis provider for HMM business at these locations. - Trucker must contact chassis provider to setup chassis lease agreement. B - New York, New Jersey (other locations). - Trucker must contact with CNS to setup chassis lease agreement. 2) Minneapolis: Neutral chassis Pool. - Trac Intermodal is chassis provider for HMM business at these locations. - Trucker must contact chassis provider to setup chassis lease agreement. 3) Denver / Salt Lake City: DCCP chassis pool. - Chassis for HMM business are provided by DCCP pool. 4) Oakland, Seattle,Tacoma : TNWA chassis pool. - Chassis for HMM business are provided by TNWA pool. 5) Portland 6) Norfolk, VA - Chassis for HMM business is provided by HRCP II - HRCP II actual startup date has not been finalized, the goal is January 1, HRCP II will invoice trucker direct for chassis usage.
5 Additional Notes 1) HMM will continue to supply owned chassis where live reefer deliveries requiring the need for underslung (belly mount) generator sets. 2) Contact your local HMM sales or customer service department for additional information or questions:
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