THE port of Charleston is delaying the launch of its chassis pool until early 2023 because it has taken longer to negotiate a price for new equipment, reports IHS Media.
In October, the South Carolina Ports Authority (SCPA) declared it was forced to delay the new chassis pool until late 2022 due to production delays that have been hindering US chassis manufacturers.
The SCPA's board of directors appropriated US$160 million for the 12,900-chassis pool last May, assuming the average chassis would cost $12,500.
Although that was the market rate then, the port received quotes that were considerably higher this year.
'At a certain point, we just have to say No on price,' said SCPA chief executive Jim Newsome.
'We can't just pay whatever somebody wants to charge us for a chassis, pay a price which doesn't make sense given what you can recover per day leasing a chassis versus buying a chassis,' said Mr Newsome.
The US Bureau of Labour Statistics' Producer Pricing Index (PPI) for hot-rolled steel in October 2020 was 99.6 and has tripled in the last 12 months, ending October at 334.6.
'There's more demand for improved chassis than there is supply, for sure, but when you get above $20,000 a chassis, it doesn't make sense to buy them,' said Mr Newsome.
Chassis manufacturers declared their prices have gone up because steel, copper, axles, air tanks, and other chassis subcomponents have gone up in price.
SeaNews Turkey
In October, the South Carolina Ports Authority (SCPA) declared it was forced to delay the new chassis pool until late 2022 due to production delays that have been hindering US chassis manufacturers.
The SCPA's board of directors appropriated US$160 million for the 12,900-chassis pool last May, assuming the average chassis would cost $12,500.
Although that was the market rate then, the port received quotes that were considerably higher this year.
'At a certain point, we just have to say No on price,' said SCPA chief executive Jim Newsome.
'We can't just pay whatever somebody wants to charge us for a chassis, pay a price which doesn't make sense given what you can recover per day leasing a chassis versus buying a chassis,' said Mr Newsome.
The US Bureau of Labour Statistics' Producer Pricing Index (PPI) for hot-rolled steel in October 2020 was 99.6 and has tripled in the last 12 months, ending October at 334.6.
'There's more demand for improved chassis than there is supply, for sure, but when you get above $20,000 a chassis, it doesn't make sense to buy them,' said Mr Newsome.
Chassis manufacturers declared their prices have gone up because steel, copper, axles, air tanks, and other chassis subcomponents have gone up in price.
SeaNews Turkey
