CCM Pools - Motor Carrier Choice of Chassis Providers Presentation for Motor Carriers

September 1, 2013

Consolidated Chassis Management WHO WE ARE

Formed in 2005 to develop a more efficient model for operating chassis

• Over 135,000 chassis under management in 6 pools – The pools are based on a cooperative model. Also known as a “gray” chassis pool

– Pools are located in all major areas except the Northeast, Norfolk and West Coast

• CCM Pools operate on a cost pass through no-profit basis

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Mission

CCM's mission is to operate the most efficient and collaborative chassis pools for stakeholders; its operating philosophy is defined by the principle that CCM will design its product to promote competition and support multiple contribution models.

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Definitions

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Members: Companies that have signed a CCM Pool Contributor and User Agreement. These can be:

- Companies that have contributed equipment, and, either directly use pool chassis or allow their customers to use pool chassis.

Chassis Provider:

One who contributes chassis to a CCM pool and then provides pool chassis to its customers. This is typically a company in the chassis rental business or an ocean carrier.

Provider Ranking:

Describes the Motor Carrier’s prioritization of the preferred order of their Chassis Providers so CCM knows which Chassis Provider the Motor Carrier wants their usage assigned to.

- The Motor Carrier’s highest ranked Chassis Provider with which a Motor Carrier is in good standing will be assigned the usage.

- Usage Bans can be set and removed by Chassis Providers. - Ranking is a National setting and remains in effect until changed by the Motor

Carrier.

Exception or Declaration:

An ad-hoc option for the Motor Carrier to direct usage to a designated Chassis Provider.

Choice of Chassis Provider Allowing Motor Carriers to freely choose the Chassis Provider promotes competition and creates a “market” within a pool.

Ocean Carrier’s Responsibility:

• Inform CCM of their Chassis Provision Policy or Model:

Chassis Provider’s Responsibility:

• Inform CCM of the valid agreements with Motor Carriers.

• Have the capability to put Motor Carriers on or remove a usage ban.

Motor Carrier’s Responsibility:

• Confirm agreements with Chassis Providers in www.chassis.com.

• Rank their Chassis Providers nationally. When a line has declared “Open Choice”, the ranking will indicate the Chassis Provider the Motor Carrier wants their usage assigned to.

• Can override their national ranking with an exception on an ad-hoc basis. 5

Ocean Carrier Provision Model

Default Rule for Assigning On Street Usage Motor Carrier Option for Redirecting Usage

- Dedicated Provider

On street usage is assigned to the ocean carrier's designated on terminal chassis provider

No Motor Carrier Choice

- Open Choice The motor carrier can select the chassis provider for on street usage Motor Carrier Chooses Provider

- Dedicated with Exception

On an ad-hoc basis , a motor carrier can override the ocean carrier’s pre-designated chassis provider for the on street usage assignment on a per move basis

Motor Carrier chooses Provider by Booking or B/L number

Guidelines for Motor Carrier Choice The processes & systems input that are required:

• Motor Carriers cannot steer usage to their selected Chassis Provider until after the Chassis Provider and Motor Carrier have confirmed they have an agreement.

• If Motor Carriers do not want usage assigned to the ocean carrier selected Chassis Provider, the Motor Carrier will need to use the “Chassis Provider Choice” functionality in Chassis.com.

• All changes in Chassis Provider must be made in advance of the actual physical chassis use (at chassis pick up). – No Retroactive Changes

• Exceptions by Booking and Bill of Lading will only work if the Booking or Bill of Lading number entered into Chassis.com is an exact match to what the terminal reports in the gate move transaction.

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Line designated on-terminal Provider

Line’s on-terminal provider is extended off terminal usage

Motor carrier can choose its chassis provider at consignment level (e.g. Bill of Lading, Booking)

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Determining of Chassis Provider - 3 Model Options

All off terminal usage is directed by motor carrier’s choice of its chassis provider. Motor Carrier may also provide exceptions (override) their ranked provider.

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If no exception, then Line Selected Provider - Dedicated Usage

Process The following diagram outlines the process after the commercial terms between the Motor Carrier and the Chassis Provider are agreed to:

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Process Motor Carriers can optionally remove an agreement with a chassis provider, change the ranking of their providers or provide exceptions whenever they desire. The following diagram outlines the process for accomplishing this:

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Assigning Usage CCM’s Chassis Management System (CMS) uses the Ocean Carrier’s provision model and the Motor Carrier’s preferences to assign usage to a Chassis Provider.

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Assigning Usage CCM’s Chassis Management System (CMS) uses the Ocean Carrier’s provision model and the Motor Carrier’s preferences to assign usage to a Chassis Provider.

Requirements:

• NMFTA SCAC Code must be used: – When Motor Carrier registers in chassis.com.

– When Facility reports gate moves to CCM.

• Depots, Terminals must report accurate Motor Carrier SCAC codes, Bill of Lading and Booking reference numbers.

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Chassis.com Demo

The demo will allow you to see who performs what functions in order for you to select your preferred Chassis Provider.

1. Email to Motor Carrier after chassis provider registers agreement

2. Motor Carrier confirms agreement and ranks Chassis Providers

3. Motor Carrier enquires on Line’s provision model

4. Motor Carrier creates an exception to ranking

5. Motor Carrier removes a Chassis Provider agreement

6. Chassis Provider / Motor Carrier Preference report

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Going Forward

• Excluding the MCCP and the SACP, all on terminal and on street usage defaults to the line’s chosen provider.

• In the MCCP and SACP, Motor Carriers have the option to choose their provider – Where shipping lines declare that they no longer provide chassis and their provisioning model is Open

Choice or Dedicated with Exception.

– The use of chassis.com is at no cost to Motor Carriers

– If Motor Carriers choose not to go on the site and select their providers all on terminal and on street usage defaults to the line’s chosen provider.

• Do you know the moves where you are paying for the use of a chassis? – If you aren’t sure you shouldn’t use the Chassis Provider choice functionality

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Chassis Providers As Of September 1, 2013

The following are the Chassis Providers available as of September 1, 2013:

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MCCP SACP

• Bridge Chassis Supply • Bridge Chassis Supply

• Motor Carriers Chassis Pool • DCLI

• Trac Intermodal • Flexi-Van

• North American Chassis Pool Cooperative (NACPC)

• DCLI

• Trac Intermodal

Shipping Lines Allowing Choice on September 1, 2013

The following Shipping Lines allow choice by exception as of September 1, 2013

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MCCP SACP

• Cosco • ACL

• Hanjin • Cosco

• Hapag Lloyd • MOL

• MOL • OOCL

Need Help After Today

Contact CCM at mcsupport@ccmpool.com

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