Chassis Usage Fee
Logistics Term
What’s Chassis Usage Fee?
The chassis usage fee is a recent fee in freight. It is an additional non-negotiable charge within the freight charges. It's owed to the carrier at the point of destination. It caters to the fee imposed on the chassis used to move containers in and out of the ports. However, it is essential to understand that it's not an entire cost but related to other fees such as terminal handling charges, congestion surcharges, and consolidation fees. Demurrage and detention fees, however, entirely depend on the chassis. Detention refers to charges incurred by the consignee due to the extra days they retain the carrier's container. On the other hand, demurrage refers to charges paid for extending the free period to ensure a full container is emptied fully.
Importance of Chassis Usage Fee
The charge ensures the process is more efficient and reduces the container's turnout time. However, detention and demurrage fees are affected by the chassis congestion at the ports. It is possible to control chassis usage charges by employing supplier-owned containers (SOC). They offer more flexibility, room to control the additional costs, time efficiency, and reasonable charges. The chassis usage fee is not an expense you must incur when conducting freights. It is only charged when the carrier's chassis is used and in specific ports only.
