AJOT: How did the supply chain disruptions, particularly with the terminals and ports, impact the chassis business?
Mike Wilson: A chassis is made to roll. If the chassis is not moving with a box on it, it’s interrupting the fluidity of the supply chain. With the problems, we had essentially with cargo being either out of sequence or out of season and filling up the warehouses, containers full of cargo had been sitting on chassis in storage yards all over the country. And as a result, the chassis is being absorbed. The normal chassis that would be rolling is now sitting. And we’ve gone from a metrics base of about seven or eight days per chassis turn on the street to chassis turns in some locations over 30 days. But on average, we’re doing about 18 days. It’s nearly three times as long as the normal chassis turn would normally be.
AJOT: Has there been any improvement with the supply chain returning to a new version of “normal.”
Mike Wilson: Recently, we’ve seen an uptick in the turns. We have seen some breaks in cargo blockages and some in the DCs and warehouses. And we are starting to see improved turn times with more chassis coming back into the terminals. I think this is the beginning of an improvement that we’ll see over the next several quarters.
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