Chassis Charge at Destination CUC/D
Definition
Chassis Charge at Destination, commonly abbreviated as CUC/D, refers to a fee levied for the rental and utilization of container chassis at the destination port, predominantly in North American logistics operations. This charge is incurred when a container is transported from a port or terminal to its final inland destination. The chassis, which is a wheeled framework used to support and transport shipping containers over land, is essential for the efficient movement of cargo once it arrives at port.
The fee is typically collected by the chassis provider, which could be an independent leasing company or a shipping line, and is paid by the consignee or their appointed freight forwarder. The rationale behind this fee lies in the cost associated with maintaining, storing, and managing the fleet of chassis, which are crucial for ensuring smooth cargo transport operations.
CUC/D is billed based on the duration of chassis usage, usually calculated per day, from the time the chassis is picked up until it is returned. It is important to distinguish this charge from other related fees such as drayage, which covers the movement of goods over short distances. While drayage may include chassis usage, CUC/D specifically pertains to the leasing of the chassis itself.
In practice, logistics professionals should carefully monitor chassis availability and manage return timelines to avoid unnecessary costs. Ensuring clear communication with chassis providers and understanding the terms of use can mitigate unexpected charges. Additionally, comparing rates and terms among different providers can lead to more cost-effective solutions, enhancing overall supply chain efficiency.
Summary
Chassis Usage Charge at Destination for rental and use of container chassis at the destination port, primarily applicable in North America.