Intermodal chassis manufacturers are facing challenges due to weak demand and an oversupply situation, resulting in scaled-back production:

• CIE Manufacturing has reduced production in response to market conditions, with VP Ben Evans citing a sharp decline in demand from both carriers and leasing companies.
• Hyundai Translead Director Savvas Constantinides noted a lackluster year in terms of production and utilization, with leasing companies utilizing only 50% of their capacity.
• ACT Research is reducing its 2024 chassis production forecast due to the prevailing market conditions.
• NFI Industries SVP Mark McKendry highlighted an oversupply of chassis and containers, leading to decreased demand.
• Pratt Intermodal Chassis COO Kent Musick mentioned slow demand for standard 40-foot gooseneck chassis compared to previous years.
• Despite a surge in U.S. intermodal chassis production during the pandemic, demand has declined in 2024 due to an oversupply.
• Executives are observing some niche opportunities, such as increased interest in 53-foot rail intermodal chassis and longer-distance freight movements.
• Economic uncertainty and cautious buyer behavior, influenced by factors like the presidential election, are contributing to a wait-and-see approach among potential buyers.
• Major chassis pool operators, like Trac Intermodal, are holding off on acquiring new assets until market conditions improve.
• Excess capacity is affecting major carriers like J.B. Hunt Intermodal, which is experiencing weaker-than-expected demand and rate pressures.
• Despite the challenges, there has been a slight rebound in rates since the first quarter of the year, but competition in bids remains intense.