Bulk carriers across many segments are trying hard to keep up with demand, but a shortage of new equipment, due to various supply-chain issues, is making it difficult, so who are they going to call when they have a new haul?
Ralph Nappi III’s company can help bust capacity constraints.
Transport Resources Inc. (TRI) has served tank truck-industry customers for more than 50 years, and its trucking roots go even deeper. Nappi is a fourth-generation leader in the family-owned company based in Matawan, N.J., which was spun off from Nappi Trucking, their original transportation operation started by his great grandfather.
Today, the company specializes in staging assets in key chemical markets across the country, with numerous vendor relationships and nearly 1,000 liquid tank and dry bulk trailers in its rental and lease fleet that are fully spec’d and ready to roll for busy customers in desperate need of additional equipment.
“As supply chains have started to come back up, they’ve been stressed in different ways, so some customers are adding additional tanks they might not have requested ordinarily to try to alleviate driver constraints, and other issues. There’s a lot of pre-loading and staging, and things like that, to keep supply chains moving.”
Vested interest
Nappi, now vice president of operations, joined TRI in 2004.
The company, started in 1970, originally was involved in intermodal port work and general chemical hauling out of New Jersey, but it pivoted to equipment leasing in the 1990s. “They were looking to figure out ways to increase equipment utilization,” Nappi related. “The hauling business at that point in time wasn’t as profitable as it had been, and some of the customers they hauled for had need for extra tanks to use, so slowly they started transitioning to leasing, and eventually it became the main focus of the business.”
Naturally, they began assisting clients in the bulk industry, which is what they knew best.
Growing up, Nappi worked odd jobs at Nappi Trucking, and then he joined his father, Ralph Jr., at Transport Resources after college. Back then he was in charge of maintenance, and oversaw a fleet of tank trailers, mostly MC 307s ranging from 5,500 to 7,000 gallons, ISO tanks, and chassis trailers roughly 250 units strong.
“Initially it was something I was going to do for experience, but the more I learned the more I got into it,” Nappi recalled. “Ultimately, the idea of being in charge of the business, and coordinating day-to-day operations, and seeing the company’s success as a direct result of our team’s hard work, was very appealing.”
Now Nappi oversees most of TRI’s leasing operations in the U.S. and Canada. Brother Anthony Nappi manages the home office, Ralph Jr., and his wife, Terry, still are involved with the company on a scaled-back basis, and Nappi’s sister, Mary Andre, runs the back end of the business, including billing and financing.
“It’s a great accomplishment,” Nappi said. “With each passing generation, the likelihood that the business is going to survive typically goes down, so to have (TRI) last through not one, but two generations is a point of pride.”
Embedded equipment
TRI moved from its first location in Jersey City to Matawan in the late ’90s.
Trailers now are domiciled at sites in Atlanta, Ga.; Chicago, Ill.; Houston, Texas; Los Angeles, Calif.; Mobile, Ala.; and Portland, Ore., among others, that are associated with the top manufacturers in the industry, including Brenner, Heil, Polar, TANKCON, and Tremcar. “We approach it from the standpoint of partnering with different vendors in different areas,” Nappi explained. “Some are large national providers, and others, in certain areas, might be smaller, mom-and-pop types of places. And in exchange for providing the maintenance and testing, at these interchanges where equipment is coming back and turning around, they give us space to store equipment, and the time to get it ready for the next customer.”
By maintaining equipment pools in key markets, TRI stays close to its customers, accelerating turnaround times, and minimizing delivery and return expenses. TRI’s model also allows it to easily establish new locations as needed. “With some of the national brands, once we open an account, we can go to any of their locations,” Nappi said. “So as we find vendors we like, because they’re in busy areas and do a good job, we stick with them. They become familiar with what we’re looking for, and how we like to maintain equipment, and the process runs more smoothly as we return to the same locations.”
Nappi said the relationship also benefits their vendor partners.
“We provide a steady flow of business, as opposed to some of the other work they get, which tends to have real big peaks, and big rushes, and then die down,” he said.
Current trailer equipment includes pneumatic and vacuum pneumatic dry bulk trailers; insulated 316 stainless-steel, DOT 407 trailers for chemical and foodgrade products; rubber-lined DOT 412 liquid tank trailers; resin-lined fiberglass reinforced plastic (FRP) trailers for acids; and aluminum tank trailers. Cargo tank sizes range from 1,000 to 2,000 cubic feet on the dry side, and 4,200 to 9,200 gallons on the liquid side.
A recent focus has been on working with vendors to establish a standard set of specifications, so customers know what to expect from all of TRI’s trailers. Vapor recovery and fall protection come standard on most new units, including the latest Tremcars. “We set them up with the idea of trying to make them as feature-rich and useful as possible,” Nappi said. “So they’ve got end-to-end classical fall protection, ground-level vapor recovery, air lines front and back, belly lines for side unloading, and 400-degree temperature ratings. We’re really trying to beef up the specs to make them appealing to more people.”
Flexible service
TRI’s success stems from its ability to serve its customers—whatever those needs might be, and whenever they arise.
A portion of the company’s fleet is dedicated to plant storage. TRI also works with its customers wherever possible to trade one type of trailer for another if the hauling they’re doing changes while under contract.
“We try to be as flexible as possible with the terms that we offer,” Nappi said. “It depends on the equipment but for a typical stainless steel-type trailer we can do a term as short as a month and as long as multi-year. On lined equipment, due to additional inspection and maintenance costs, we typically require a six-month minimum.”
When trailers are returned, they’re washed and inspected by a third party, and any cosmetic or mechanical issues are addressed, to guarantee they’re clean, dry, and odor free for the next customer. TRI maintains trailer registrations, but customers are responsible for maintenance and repairs during the term of the lease.
TRI offers a range of model years. It keeps older equipment in the fleet, as long as its meets high standards for appearance and functionality, and always is adding new equipment for customers who prefer to rotate in late-model trailers at regular intervals to reduce maintenance costs, even if the upfront cost is higher.
“We might not always be the least-expensive option, but we always make sure we present our customers with a good, dependable experience,” Nappi said.
Attractive alternative
Leasing always is a good option for many customers.
Chemical producers rent tank trailers for temporary in-plant spotting, a service that’s ideal for batch processing, campaigns, or isolation. Private and for-hire fleets preserve capital by leasing equipment for peak seasons or short-term jobs.
“Where it’s most useful in in reacting to changes in the market,” Nappi said. “If all of a sudden a customer calls you with additional loads, or you want to take on a new lane you don’t have equipment for—and you think the lane will be good for six to 12 months, but you’re not sure—you can lease a tank, or rent it, and turn it back in if the business goes away. So you’re not locked into that capital outlay to purchase the asset.”
And that’s if the asset is available to purchase.
In today’s climate, disruptive shortages in raw materials and parts are extending lead times on equipment orders, sometimes up to a year, making new vehicles an expensive commodity—and leasing a more attractive alternative.
“Business has been strong as everyone tries to figure out the new, best way to do things, given the constraints in supply and drivers,” Nappi said.
“We’re definitely staying busy.”
