Intermodal drayage operations face persistent billing friction around chassis equipment. When a loaded container is delivered and the empty chassis must be returned to a different pool or terminal, the resulting flip charges, bare repositioning miles, and daily per diem fees often become unbillable disputes. Strong Tower Consulting has designed a decoupled billing architecture that automatically identifies the responsible party, calculates precise cost splits, and assembles electronic dispute packages for Interchange Equipment Providers (IEPs).
The Cost Leakage Problem in Intermodal Drayage
Traditional TMS platforms such as Truckmate, McLeod, and TMW were built for over-the-road freight. Their native billing engines lack the event granularity required to allocate chassis-related accessorials. As a result, most motor carriers absorb 30-45% of chassis pool per diem, flip fees, and empty repositioning costs as unrecoverable overhead. Manual research of these disputes consumes entire accounting teams and delays cash flow by 45-90 days.
The architecture described here operates outside the core TMS. It ingests real-time events from multiple sources, maintains a normalized equipment event log, and applies business rules derived from the Uniform Intermodal Interchange and Facilities Access Agreement (UIIA) and individual IEP contracts.
Core Components of the Architecture
The solution is built on a SQL Server event store with the following normalized tables:
- EquipmentEvent - captures every gate in/out, chassis attach/detach, and status change with UTC timestamps
- LoadAssignment - links orders (EDI 204) to specific chassis and containers
- CostEvent - records invoices received from IEPs via EDI 210 or paper PDF
- DisputePacket - stores compiled evidence bundles with supporting timestamps and documents
- AllocationRule - maintains carrier-specific business logic for split calculations
Automated Chassis Split Cost Allocation Logic
When a chassis split occurs, the engine evaluates the sequence of events to determine financial responsibility. Key decision factors include:
- Which party requested the specific chassis type or pool
- Whether the shipper or consignee caused equipment unavailability (no load ready, appointment missed, etc.)
- Terminal free time rules versus actual gate transaction timestamps
- Bare chassis repositioning distance and fuel surcharge applicability
| Scenario | Flip Fee | Per Diem Days | Reposition Miles | Responsible Party | Recovery Rate |
|---|---|---|---|---|---|
| Shipper appointment failure | $185 | 3.0 | 42 | Shipper | 94% |
| Consignee detention >2 hrs | $0 | 2.5 | 18 | Consignee | 81% |
| Carrier equipment substitution | $125 | 1.0 | 0 | Carrier | 0% |
| IEP notification delay | $210 | 4.0 | 67 | IEP | 100% (dispute) |
IEP Per Diem Dispute Engine Workflow
The dispute engine runs nightly against newly received IEP invoices. For each line item it performs the following steps:
- Match the equipment number and date range to internal EquipmentEvent records
- Calculate allowable free time based on the specific terminal, day of week, and UIIA addendum
- Identify exceptions such as equipment unavailable, late IEP notification, or weather force majeure
- Assemble a dispute packet containing gate transaction logs, EDI 214 status reports, driver mobile timestamps, and scanned appointment confirmations
- Transmit the dispute via the IEP's preferred channel (API, email, or EDI 210 credit memo)
- Track resolution status and expected credit in the financial reconciliation dashboard
This process eliminates the need for accounting clerks to manually search across Truckmate, McLeod dispatch boards, email inboxes, and paper gate receipts. All evidence is stored relationally and can be regenerated on demand for audit or litigation support.
Integration With Existing TMS and EDI Infrastructure
The architecture is deliberately decoupled from any single TMS vendor. It consumes standard EDI transactions (204, 214, 210) through existing translation maps and supplements them with direct SQL Server views against McLeod, TMW, or Truckmate databases. Driver settlement records, fuel surcharge calculations, and detention billing logic remain untouched in the core system. The chassis allocation engine simply posts approved split amounts back as billable accessorials on the appropriate customer invoice.
Implementation Considerations for Motor Carriers
Successful deployments require three foundational elements:
- High-fidelity gate and chassis event capture (either through terminal APIs or driver mobile applications)
- Clear mapping of customer appointments to specific equipment moves
- Executive commitment to bill shippers and consignees for their share of equipment costs rather than absorbing them as cost of business
Once these elements exist, the automated engine typically delivers positive ROI within 90 days through recovered revenue and reduced administrative labor.
FAQ
What is chassis split cost allocation in intermodal drayage?
Chassis split cost allocation is the process of automatically attributing flip fees, bare chassis repositioning mileage, chassis pool per diem, and related accessorials to the specific shipper or consignee whose actions caused the equipment imbalance.
How does an automated IEP per diem dispute engine work?
The engine continuously monitors Interchange Equipment Provider (IEP) per diem and demurrage invoices against internal event timestamps captured via EDI 214, driver mobile, and terminal gate transactions. It assembles dispute packets with proof of unavailability, late notifications, or force majeure conditions and transmits them electronically.
Which TMS platforms can integrate with this architecture?
The decoupled billing architecture works with Truckmate, McLeod, TMW, and custom SQL Server-based systems. Integration occurs through real-time SQL views, EDI 210/214 processing, and event-driven APIs rather than vendor-specific modules.
What measurable financial impact can carriers expect?
Carriers typically recover 68-87% of previously unbillable chassis split and per diem charges within the first six months while reducing manual dispute processing time by over 80%.
Strong Tower Consulting, LLC and Exspeedite LLC are separately organized sister companies under common ownership. Founded in Minnesota in 2008 by Scott Elliott, the firm has spent more than 18 years helping motor carriers and intermodal drayage operators modernize their technology architecture and financial controls.
If your organization moves more than 500 intermodal loads per month and struggles with chassis-related billing leakage, contact us to discuss how a purpose-built cost allocation and dispute engine can be integrated into your existing TMS environment.