The container shipping and trucking industries have long grappled with unpredictability in volume needs, a challenge made even more acute by recent global economic disruptions. Against that turbulent backdrop, TRAC Intermodal has introduced a pioneering solution with the launch of its GeoFleet system.
This novel chassis solution is set to redefine fleet management paradigms, providing much-needed flexibility and efficiency to motor carriers, ocean carriers, beneficial cargo owners, railroads, and NVOCCs across the United States.
A new era of smart fleet management
TRAC GeoFleet is an innovative on-demand chassis solution that offers customers guaranteed chassis availability alongside usage-based billing facilitated by geofencing technology. The geofencing capabilities ensure that charges only kick in when the chassis leave the geofenced boundaries of the customer’s storage facility. This approach not only optimizes fleet costs but also provides real-time GPS tracking for enhanced visibility and management of assets.
Geofencing utilizes GPS or RFID technology to create a virtual geographic boundary, prompting software to react when a mobile device enters or exits that defined area.
“Our customers can now operate with guaranteed access to TRAC’s trusted equipment and advanced visibility tools, while paying only for what they use,” said Daniel Walsh, President and Chief Executive of TRAC Intermodal, in a release.
In an interview, Jake Gilene, executive vice president and chief commercial officer, said that the introduction of GeoFleet was a direct response to customer demand for more flexible leasing options in an increasingly volatile market environment.
“We thought we’d come up with a solution by listening to them say, ‘We just don’t know what’s gonna happen next month,’” Gilene said. “But this assures them that, based off their historical trends, they know they could need up to a certain number of chassis, but they don’t want to pay for that full number every month.”
Addressing market volatility
GeoFleet’s strategic value is pronounced against current market conditions marked by economic uncertainty and fluctuating tariffs. TRAC had preemptively developed the GeoFleet product, beginning its rollout prior to the recent trade upheavals.
For fleet customers, the introduction of GeoFleet translates to a reduction in delays and operational costs associated with last-minute sourcing amid market volatility. By guaranteeing chassis availability and eliminating the risk of unforeseen shortages, businesses can better plan their logistics operations, enhancing overall supply chain resilience.
Enhancing operational flexibility
At the heart of GeoFleet is operational flexibility tailored to customer needs. Traditionally, term lease products often lock customers into rigid contracts, requiring them to pay for their maximum potential usage irrespective of actual demand. However, with GeoFleet, TRAC offers a model where customers can store the chassis at their locations and benefit from a flexible lease framework. Customers pay a base rate for the guaranteed usage of half the leased chassis and are charged only for the additional usage beyond that threshold, providing the utmost flexibility without financial waste.
“Creating the product for them allows us to use the technology to say, okay. We’ll work with you,” said Gilene. This approach mitigates the operational strain of fluctuating demand, allowing customers to focus on optimizing their supply chains instead of being encumbered by unnecessary costs.
Integrating with advanced technology
TRAC’s venture into geofencing and GPS technology signifies a major leap forward in integrating advanced technology within logistics management. While the current implementation of GeoFleet focuses on GPS technology for real-time asset tracking, TRAC acknowledges the potential for artificial intelligence (AI) in future iterations. Said Gilene, “I think down the road, there’s an AI capability, particularly when you talk about what AI can do when generating forecasting and how we can get better forecasting and visibility.”
Nationwide availability and scalability
Crucial to GeoFleet’s impact is its extensive availability across the United States. Unlike solutions that are region-specific, TRAC ensures a uniform rollout nationwide, enabling fleet customers to benefit without geographical restrictions. Additionally, the system’s scalability ensures that it caters to both small and large fleet operators, accommodating varying business needs.
Implications for the future of fleet management
For the container shipping and trucking sectors, the advent of GeoFleet represents a pivotal shift towards more adaptive and resilient fleet management strategies, a requisite in today’s hyper-evolving logistics environment.
Find more articles by Stuart Chirls here.
Related coverage:
Xeneta expands into global carrier performance with eeSea acquisition
Supply chain disruptions feared as Air Canada prepares for strike
Is Canada Post too big to fail?
Past is prologue: Rising container volumes portend falling rates
The post TRAC’s new GeoFleet a game-changer in chassis fleet management appeared first on FreightWaves.
