AAPA Seaports Advisory

Supply Chain Productivity: Virginia

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Virginia Port Announces New Capabilities for BCO Chassis Billing

The Port of Virginia’s chassis pool will implement a direct-to-BCO (beneficial cargo owner) billing system that is aimed at streamlining and simplifying the billing process for paying chassis usage fees.

Hampton Roads Chassis Pool II (HRCPII) will put the direct-billing system into service on January 1, 2016. HRCPII is the Virginia Port Authority’s chassis management subsidiary.

"Pooling chassis for common use at The Port of Virginia has generated significant efficiency gains of the last decade," said John F. Reinhart, CEO and executive director of the Virginia Port Authority. "Offering BCOs the option to take control of their chassis usage and manage the associated costs is an important step in this progression."

Data management and billing rule functionality will be extended to shippers and consignees, whose goods are picked up and delivered on HRCPII chassis, regardless of geographic location. BCOs will provide shipment data indicating the moves for which they are responsible for chassis costs, based on their carrier- or merchant-haulage contracts. Further, BCOs will also be able to view their daily chassis rental activity and dispute erroneous events before chassis usage invoices are produced, ensuring accurate billing.

"As the chassis provisioning model has evolved over the last few years, the freight owners’ needs have not always been accommodated," said Art Ellermann, general manager of HRCPII. "By being able to track and bill chassis to the accounts of the beneficial cargo owners, The Port of Virginia serves them better and makes the entire chassis billing cycle more efficient for all."

The system derives billing rules from facility gate move and shipment data to provide accurate visibility of chassis movements to responsible parties. Motor carriers, ocean carriers and BCOs can view and track their HRCPII chassis usage in real time. Web-based tools within the system will enable chassis users -- now including BCOs -- to monitor and dispute their usage if required. Company personnel help users resolve chassis issues as needed and provide around-the-clock support from offices in Chicago and Hong Kong.

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