New Articles

The Future is Cold Chain Solutions: Don’t Risk an Unmanaged Supply Chain

cold chain

The Future is Cold Chain Solutions: Don’t Risk an Unmanaged Supply Chain

As medication therapies continue to innovate and rely on cold chain delivery, including the COVID-19 vaccine, health systems need to evaluate their programs, leverage technology and ensure their systems are fully managed to best help patients, reduce costs and streamline efficiency. Patient-centered cold chain supply chains focused on last-mile prescription delivery have evolved significantly over the last 15 years. This advancement might be due to the relative novelty of cold chain, which did not play a key role in patient interactions in the past.

Overcoming Initial Growing Pains

Because there has been no template for how to incorporate cold chain solutions into health systems’ and hospitals’ supply chains, they have had to rely on their staff, pharmacists, and partners to create what could be said is an ad hoc program. One of the greatest challenges they faced is determining how to verify a shipment — which product is best? How can a transaction be monitored? Thanks to advancements in technology, we can now use low-energy Bluetooth monitors to track micron-level environmental readings and use systems to verify a shipment’s progress.

Packaging is another area that has made significant strides in the past few decades. The industry has transitioned from status quo styrofoam packaging to making environmentally friendly packaging a priority. These advancements provide us with the resources, systems, and information we need to provide safe, consistent, and timely medication to patients everywhere.

Anticipating Future Innovation

The evolution of medicine forces insurance companies to redefine reimbursement to health systems, which in turn redefines priority around cold chain and accreditation. As researchers continue to advance medicine and cure diseases earlier, the health system supply chain must quickly catch up in support.

The industry will rely even more on mail medication and virtual healthcare in the future, and we can likely anticipate additional innovation soon. From packaging infused with chemicals to help products stay within temperature range during transport to incorporating technology within every shipping container so we have a live monitor to verify the conditions via an app every step of the way, cold supply chains will become even more accessible and reliable.

Investing in a Managed Cold Chain

To streamline current operations and prepare for future innovations, health systems should prioritize a managed cold supply chain, or create a process and leverage technology that delivers full transparency and awareness of inbound and outbound products. A managed system has processes in place to know if and when a shipment gets delivered, is opened in a timely manner and is properly stored. It also utilizes technology controls to track audits, losses and complaints, and fix potential issues before they materialize. Managed chains can be spearheaded within an organization or through a partnership that fills the gaps more easily than a custom process, such as TRIOSE’s Pharmacy IQ, which allows pharmacies to seamlessly incorporate delivery services into their existing structure.

On the other hand, an unmanaged system can be incredibly scary because it leaves systems vulnerable to the unknown. From a patient safety standpoint, when products can’t be verified, medicine to a patient’s home might arrive expired, useless or even dangerous. Unmanaged supply chains are also dangerous from a cost perspective. Consider the cost of specialty medication, which can have values of over $60,000 and be rendered useless because it circled via UPS or FedEx for five days without anyone knowing about it. There is a spectrum of significant risks to an unmanaged cold supply chain — safety, finances, lawsuits, etc.

Cold chain solutions might still be a relatively new frontier for healthcare providers, but there are a number of industry best practices that can be leveraged to maximize success. Prioritizing an assigned accountability person to manage inbound and outbound processes and investing in technology that boosts transparency at every turn aids in avoiding risks, increasing patient safety and improving health systems’ bottom lines.

Envirotainer

Envirotainer’s CryoSure® Transforms Low-Temperature Shipping

The future of cryogenic shipping is now met with a sustainable and revolutionized option thanks to Envirotainer – a leader in secure cold chain solutions for intercontinental shipments of pharmaceuticals bringing more than 30 years of expertise to the industry.

“For many years, the strategy of Envirotainer has been to extend our offering through new innovative products and services and to expand into new segments. This technology fits perfectly into our circular business model and is going to be an important part of our offering going forward. The unique, premium quality, and completely reusable technology matches perfectly into Envirotainer’s global footprint”, says Fredrik Linnér, Chief Business Development Officer at Envirotainer.

The company announced the release of four models representing its latest solution for pharma-related shipping known as the CryoSure® platform (X1, X2, X5 and X11). This platform offers multiple competitive capabilities and elements including  -70oC performance. Particularly beneficial for longer shipments, the CryoSure® technology addresses risks resulting from delays and human errors, ultimately providing safer, sustainable, and more reliable pharmaceutical shipping to benefit patients.

“This new CryoSure® technology takes pharma transportation to the next level by mitigating most if not all risks currently faced when shipping pharma products below -70°C. It is a game-changer and is going to revolutionize this part of the market”, says Mattias Almgren, CryoSure® Platform Executive at Envirotainer.

“Envirotainer has been leading the way ever since the beginning of the temperature-controlled shipments and it is with great pride that we today announce the launch of CryoSure®. We believe CryoSure® fills a substantial gap in the cryogenic -70°C shipment market and significantly improves patient safety”, says Peter Gisel-Ekdahl, CEO at Envirotainer.

Added benefits provided by CryoSure® include duration of three weeks, heat resistance, ease of use, and is known as the most sustainable solution currently on the market.

To learn more about CryoSure®, please visit: https://www.envirotainer.com/cryosure

nansha

PORT OF NANSHA’S LATEST INFRASTRUCTURE PROJECTS PROPEL LOGISTICS SERVICES ACROSS THE GLOBE

Port of Nansha, which is part of the Guangzhou Port Group, is now the fifth-largest port globally and the fastest-growing port in South China. Encompassing the Guangzhou, Foshan, Zhongshan, and Jiangmen regions, the Port of Nansha continues increasing its international presence through strategic infrastructure projects. 

The latest development, which was deemed the International Logistics Center, serves as a mega-warehouse complex accommodating dry and cold warehouses with new on-dock rail connections for incoming manufacturers and vendors.

As part of the overall goal driving the International Logistics Center, Shenzhen Warehousing is officially at max capacity, further reiterating the importance of port diversification to promote a balanced and agile supply chain. The cold chain warehouse will accommodate a total storage capacity of 460,000 tons upon completion–the largest cold chain facility in South China. 

“Port of Nansha Cold Logistics Warehouse, with rail access to/from the Hinterlands and Europe, will undoubtfully be a game-changer in our industry,” stated an International Logistics Center executive.

The port’s developing dry warehouse will support intermodal logistics and general-purpose warehousing services with 1.8 million square feet of total coverage. Nansha’s on-dock railway station will cover 1.05 million square feet of that area as well. Long-term goals for this development will support expansions in consumer goods, distribution, 3PL and e-commerce services.

“We were attracted to Nansha because of its strategic location and business-friendly approach to helping companies like ours to grow,” stated a 3PL anchor tenant. “The opening of this new dry warehouse will drastically save on warehousing cost, origin dray, and reduce lead times for our  e-commerce customers.”

Nansha’s $231 million railway project spans from the Guangzhou Nansha Port in the east, connecting the Beijing Guangzhou Railway via the Guangzhou-Zhuhai Railway to the north and the Guizhou-Guangzhou, Nanning-Guangzhou and Liuzhou-Zhao Qing railway to the west. This massive project is known as the only on-dock rail in South China and serves as a gateway into the Belt & Road Initiative.

Meeting unprecedented demand brought on by the pandemic inspired the latest addition of a fourth new terminal offering fully automated capabilities starting this year. The construction of the new terminal will support the addition of 5 million TEUs to Nansha’s container throughput capacity and increasing the total ship-to-shore crane count from 65 to 78.

Port of Nansha America CEO and Founder John L. Painter confirmed they will continue to capitalize on additional growth opportunities, particularly to and from the North American market, which is requesting more ocean services. In 2020, Nansha saw a 55.4 percent increase in TEU movement to/from North America compared to 2019 reports, bringing the total number of TEUs moved globally to more than 17.5 million of the 23.51 million TEUs Guangzhou Port Group moved globally in 2020.

berry

Global Berry Trade Intensifies Driven by Rasing Demand for Blueberry and Raspberry

IndexBox has just published a new report: ‘World – Berry – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The global berry imports rose by +2.6% y-o-y to 2.9M tonnes, reaching $14.8B in 2020. Global imports of blueberries, cranberries, raspberries and blackberries have been rising steadily over the last decade. The U.S., Germany, China, Canada, Hong Kong SAR, the UK and the Netherlands remain the largest markets for imported berries. Spain emerged as the fastest-growing berry importer worldwide. Spain, Chile, the U.S. and Mexico constitute the largest berry exporters in the world. 

Global Berry Imports by Country

For the seventh year in a row, global berry imports increased by +2.6% to 2.9M tonnes in 2020. It indicated a strong increase from 2012 to 2020: the volume increased at an average annual rate of +5.4% over the last eight years. In value terms, berry imports rose significantly to $14.8B (IndexBox estimates) in 2020.

In 2020, the U.S. (689K tonnes), distantly followed by Germany (309K tonnes), China (236K tonnes), Canada (225K tonnes), Hong Kong SAR (172K tonnes), the UK (164K tonnes) and the Netherlands (153K tonnes) were the major importers of berries, together constituting 67% of total imports. Russia (119K tonnes), France (96K tonnes), Spain (91K tonnes), Italy (70K tonnes) and Austria (55K tonnes) followed a long way behind the leaders.

In 2020, the most prominent spike in the volume of purchases from abroad was recorded in Spain (+16.3% y-o-y). Spain emerged as the fastest-growing importer in the world, with a CAGR of +20.8% from 2012-2020.

In value terms, the U.S. ($3.8B) constitutes the largest market for imported berries worldwide, comprising 26% of global imports. The second position in the ranking was occupied by China ($1.8B), with a 12% share of global imports. It was followed by Germany, with an 8.9% share.

In 2020, the average berry import price amounted to $5,129 per tonne, growing by +5.8% against the previous year. Last year, the most notable rate of growth in terms of prices was attained by the U.S., while the other global leaders experienced more modest paces of growth.

Global Berry Imports by Type

The imports of the three major types of berries, namely strawberries, cherries and blueberries and cranberries, represented more than two-thirds of total imports. It was distantly followed by raspberries and blackberries (467K tonnes), which make up a further 16% share of total imports.

In value terms, the largest types of imported berries were blueberries and cranberries ($4.3B), cherries ($3.9B) and raspberries and blackberries ($3.4B), with a combined 78% share of global imports. Strawberries in tandem with currants and gooseberries lagged somewhat behind, together accounting for a further 22%.

From 2012 to 2020, the most notable rate of growth regarding the volume of purchases, amongst the leading imported products, was attained by blueberry and cranberry (+11.9%). Raspberry and blackberry followed these products with a CAGR of +11.5% from 2012-2020.

Largest Berry Suppliers Worldwide

Spain (437K tonnes), Chile (381K tonnes), the U.S. (299K tonnes) and Mexico (280K tonnes) represented roughly 50% of total exports of berries in 2020. It was distantly followed by Hong Kong SAR (181K tonnes), the Netherlands (152K tonnes) and Peru (151K tonnes), together comprising a 17% share of total exports. Turkey (115K tonnes), Morocco (99K tonnes), Canada (90K tonnes), Greece (64K tonnes), Belgium (49K tonnes) and Poland (45K tonnes) held a minor share of total exports.

In value terms, Chile ($2.4B), Spain ($1.7B) and the U.S. ($1.6B) appeared to be the countries with the highest levels of exports in 2020, with a combined 43% share of global exports. Mexico, the Netherlands, Peru, Hong Kong SAR, Morocco, Belgium, Turkey, Canada, Poland and Greece lagged somewhat behind, together accounting for a further 44%.

Source: IndexBox Platform

climate-controlled

The Unique Benefits of a Climate-Controlled Warehouse

Deciding on whether or not to use a climate-controlled warehouse is often tricky. Sure, people know that there are benefits to doing so. But, if you add up the cost, you naturally wonder whether the benefits are worth it. Well, in some instances, they aren’t. But, in some cases, using a climate-controlled storage unit is practically mandatory. So, to make things a bit clearer, we will elaborate on the benefits of a climate-controlled warehouse and when to make use of them.

Top Benefits of a climate-controlled warehouse

Once people see how much climate-controlled storage costs, they are often taken aback. Even relatively simple climate-controlled storage can cost you substantially more than the standard one. And seeing that people are actively looking for ways to reduce warehousing costs, you might be wondering whether climate-controlled warehouses are necessary. Well, in certain instances, they definitely are. All you need to recognize is whether your items can survive without the protection that climate-controlled units provide.

Protection from temperature fluctuations

Even if they are pretty well-built, standard storage units cannot protect you from temperature fluctuations. Thick, well-placed insulation does help. But, it can only go so far in ensuring that the temperature inside the unit stays the same. In certain regions, even day to night changes can be substantial enough to deform or even damage your items. This is one of the reasons why North Carolina got its first In-Port cold storage facility. And why climate-controlled storage is overall necessary.

With a climate-controlled storage unit, you can ensure that the interior temperature remains the same 24/7. This is achieved not only through insulation but also through proper venting and temperature monitoring. Climate-controlled units also have sensors that can tell the workers if the temperature goes above a certain level. So, all in all, the benefit of using one is that you can rest easy knowing that your items will remain at the same temperature throughout storage.

Humidity maintenance

When it comes to certain items, the temperature might not be your primary concern. For instance, if you plan on storing wooden furniture, humidity may pose a much more significant problem. Too much humidity and your furniture can swell up and deform. Too little, and it can start to crack and splinter. To avoid this from happening, climate-controlled units take great care in maintaining the humidity.

Maintaining humidity can be surprisingly difficult in certain areas. If there are constant rains or temperature fluctuations, it can be challenging to keep the excess moisture away from the storage. A common misconception is that dry rooms are best for storage. And while this is often the case, there are exceptions where too much dry air can cause damage. Climate-controlled storage units are set up to maintain a certain level of humidity at all times.

Extra protection from dust and debris

All these extra layers of protection serve another purpose. Namely, they also stand as additional safety measures against dust and debris. Ideally, every warehouse should protect its items against dust and debris. But, the larger they are, the harder it is to notice flaws and cracks. Even a seemingly small crack can cause substantial damage, especially if it goes unnoticed. But, the need to maintain both the temperature and the humidity demands that the storage company keep a close eye on the structural integrity of the storage facility.

In this case, a small crack can show as hundreds of dollars wasted on inefficient climate control. Therefore, the company is extra careful to notice and mitigate any issues the moment they occur. This means installing systems not only to help with warehouse management but also with safety monitoring. As a result, the items stored in climate-controlled units are under much better protection, even if humidity and temperature are not the primary concern.

How to make the most out of your climate-controlled storage

To reap the benefits of a climate-controlled warehouse, it is not enough to simply put your items in it. All these benefits can only help you if you first prepare your items for storage and do the necessary research.

Proper packing

Seeing that you are considering using a climate-controlled storage facility, you probably need to store fragile items. In this case, you first need to pack them properly. This means using proper packing containers, as well as padding and wrapping supplies. While you can use standard cardboard boxes, we would advise you to consider using plastic containers. For long-term use, they are much better as they are sturdy and exceptionally resilient. When it comes to padding and wrapping, you want to do your part in giving your items the necessary protection. Sure, the climate-controlled environment will do its part. But, it is still wise to protect your goods from potential harm.

Consult with your storage providers

If this is your first time using climate-controlled storage, we advise you to consult with your storage providers. More often than not, there are important details specific to your situation. And you not being aware of those details can put your items at unnecessary risk. Explain to your storage providers what you plan to store and how long you wish to store it. They can give you helpful guidelines on how to prepare and how to store.

Get the necessary insurance

Even if you properly prepare and hire the best possible company, you should still get storage insurance. Know that the insurance provided by the storage company might not be enough to adequately cover your items. This is usually the case with luxury or antique items. Here you want to first carefully read the insurance they offer you. And then consult with an insurance agent to see if there are better options. The one thing you don’t want is to find yourself without necessary coverage if something happens.

As you can see, there are some pretty unique benefits of a climate-controlled warehouse. However, whether you should go with this option will depend on the type of goods you plan to keep in there.

_________________________________________________________________

Dustin Thompson worked as a storage operator and a moving consultant at SOS Moving Los Angeles. Now, he focuses on shipping industry research and writing helpful articles about various subjects related to shipping and warehousing.

pharma pharmaceutical

Resilience of Pharma Supply Chains and the Impact of Covid-19 Pandemic

How is the COVID-19 crisis influencing pharma supply chains for the future? Is the global pharma supply chain under sustained threat? And what about Asia and its dominance in the supply chain? These are all valid questions considering recent and current events.

It is generally agreed that COVID-19 marks a point in the understanding of medicine supply risks, but will it fuel efforts to establish local supplies of chemicals and APIs as a “matter of national security”? In the last 12 months, Pharma companies have become acutely aware of their dependency on complex supply chains. As the result, the pandemic has finally convinced all stakeholders to build more resilience into their supply chains going forward.

In the last 10 years or so, lower costs have been a key decider in relocating a significant share of manufacturing capabilities to China and India. We have, therefore, seen a large increase in production volumes in these countries where we know that almost 40% of registered sites for APIs were located in India or China, according to FDA data published in 2019.

The relocation of manufacturing to Asia has a direct impact on supply chain reliability and has led to drug shortages.

Believe it or not, drug shortages are not rare events and don’t just happen when there are worldwide pandemics. The average drug shortage in the US lasts 14 months…some last for years.

Before COVID-19, the FDA had already placed 145 pharmaceutical products on its drug shortages list. In April 2021, there were 175 drugs on the FDA drug shortages list.

Covid-19 didn’t have the foreseen catastrophic effect. There are several reasons for this:

-The pharma industry had a sufficient inventory buffer (average inventory is about 180 days for the entire industry)

-Drug manufacturing has long lead times, so the effect of 1-2 weeks manufacturing cessation in China would take some time to cycle through the supply chain.

-Supply disruptions of APIs or finished products made in China were not hugely prolonged, otherwise, the effects would have been more severe.

-Regulatory challenges for medicines were largely overcome, where required, by flexibilities introduced by regulators to fast-track regulatory processes. For example,

-Fast-tracking approvals to alternative sources of supply of reagents

-Ensuring availability of GMP certification to manufacture and import

-Remote auditing options

-Labelling and Packaging flexibility

Switching sources of supply (which is not straightforward in the pharmaceutical industry) was not extensively required…

-There was a relatively short period of logistical and distribution challenge. Demand spikes for transportation capacity was placed under enormous strain compounded by (i) surge in international demand for PPE, sanitiser, critical care medicine and medical devices (ii) Disruptions at ports (iii) Decreased capacity on Air Freight (iv) Re-routing of transportation (v) Personnel availability constraints due to lockdowns/quarantine (vi) Increased prices. Routes have already opened, and lockdowns are slowly being phased out.

However, despite all of this, local, regional, shorter supply routes are preferred in the current crisis and the environmental agenda is driving this theme globally.

Even if the manufacture of APIs or fine chemicals was more regionally dispersed or locally based, the raw materials for these manufacturers may not be available in these locations anyway.

It appears that we will have to manage the reality that raw material availability and cost are critical factors in where pharmaceutical manufacturing resides. As a result, increased resilience will need to be factored into our supply chains which will include sourcing, at some level, from Asia and the ROW. Moving production closer to home markets would be costly and would take years to accomplish. The smarter approach is to build resilience into the supply chain. How is this achieved?

The key is to ensure there is a risk management plan in place that focuses on the evaluation of potential issues arising from the loss of a supply chain partner or a region. This requires

-Alternate supply arrangements

-Inventory levels to provide a potential buffer

-Agile Manufacturing

This is infinitely more challenging than it seems. It means that organizations need to precisely know the quantity of each raw material or medicinal product in the supply chain and where it is at any given moment. This leads to hyper-complexity where advanced algorithms (and data analytics/AI) will be required to help design supply chains with greater resilience and risk monitoring capability.

Designing resiliency into the supply chain should incorporate placing inventory at the right points of the supply chain network (i.e., the right inventory commensurate to the risk at that point in the supply chain).

Investment in real-time production monitoring systems and integrated planning and scheduling tools (LEAN tools) could increase the agility of existing manufacturing sites to speed up supply and reduce requirements for additional expensive production equipment.

The pharmaceutical industry will continue to build resilience and secure itself against volatility in supply from Asia…perhaps at a faster pace than before.

Next time… could it be another virus, a mosquito, or a resistant bacterium?

However, we should not lose focus on the immediate supply chain challenge.

Supply chains need to plan now for resilience to navigate the current turbulent market.

covid vaccine

The Logistics Challenges of COVID-19 Vaccine Distribution Prove the Need for Data Integrity

Logistics companies are often described as being in the business of moving goods from points of origin to end-use destinations, and that is, of course, true — but they are also in the business of data collection, processing, and analysis. That’s because efficient transport and delivery require data from sources such as real-time navigation systems, enterprise resource planning systems, transportation management solutions, analytics solutions, and more, as well as from sensors that track internal and external environment factors: location, the temperature of shipping containers, vibration, speed, sudden stops and starts, and so on.

But just having this data isn’t enough. To successfully navigate the intricacies of the global supply chain, logistics companies must also ensure data integrity — and the challenges of COVID-19 vaccine distribution are proving just how critical that is.

What is Data Integrity, and Why Does it Matter?

Transporting mission-critical supplies around the globe is innately challenging, but successful COVID-19 vaccine distribution is proving particularly tricky for a number of reasons. A high volume of vaccines must be quickly moved from a handful of pharmaceutical manufacturing facilities to tens of thousands of global locations ranging from government facilities to private pharmacies, and deliveries must be coordinated around cold-storage availability at the receiving end. Timing is critical, because the vaccines have a limited shelf life, and the stakes are sky-high. Any vaccines that don’t make it from port to end destination on time and in compliance with certain metrics, such as appropriate temperature thresholds, represent a lost battle in the ongoing war against the pandemic.

That’s why logistics companies need to ensure data integrity, which comprises:

Quality: Vaccine shipment data must be complete, unique, valid, timely, and consistent. For example, most vaccines, that must be kept frozen, can be shipped and stored between -58°F and +5°F (-50°C and -15°C), but Pfizer’s COVID-19 vaccine must be stored at -94°F (-70°C) to remain stable. Sensors must provide real-time, accurate readings of shipping container temperatures to ensure vaccines remain at the optimal temperature throughout transport, so they can be administered to people. About 25% of shipped vaccines are compromised due to poor temperature management, according to a 2019 report from the International Air Transport Association — an untenable figure for a vaccine on which global population health and economies depend.

Location intelligence: Location data, is often used, to help identify connections between people, places, or things at specific geographic places, and what exists or occurs there. The critical need for efficient last-mile delivery of vaccines, especially to rural and remote healthcare facilities, shows why location intelligence is so important. It takes more than an accurate delivery address to complete the last mile; logistics providers also need up-to-date data on weather, road conditions, road restrictions, and traffic along the route to the destination, as well as site-specific information such as loading dock location. Location data that is outdated, inaccurate, or lacking in context can make the difference between a community that receives viable vaccines, and one that doesn’t.

Enrichment: This gives context, nuance, and meaning to the logistic firms internal data by supplementing it with data from outside sources. For example, a logistics company must supplement its own routing and scheduling data with external data on cold-storage availability at end destinations. Without this context, drivers may arrive at facilities that have no room to store the vaccine shipments, and the vaccines go to waste.

Integration: All of the systems and technologies logistics organizations use to get shipments to the right place at the right time collect and provide their own data, but none of it is much good if the systems can’t talk to each other. Seamlessly integrated data provides complete situational awareness to support decision-making at each link in a supply chain. This helps companies get time-sensitive, mission-critical supplies like the COVID-19 vaccine where they need to go, exactly when they need to be there, using the most efficient path.

Data Integrity is the Key to Logistics Success

Accurate, consistent and relevant data, integrated across all platforms and enhanced by location intelligence and enrichment, help logistics companies achieve data integrity. This elevates data’s usefulness and usability, helping companies react quickly and in real-time to any issues, and make better overall business decisions.

The need for data integrity has never been more clear — and more urgent — than it is now, and lessons learned from vaccine distribution may redefine the way the logistics industry thinks about data. By achieving data integrity, logistics organizations are better equipped to get shipments to the right destination on time — and, in scenarios such as this vaccine distribution, play an integral role in saving lives and protecting global population health.

_________________________________________________________________

Clarence Hempfield is the Vice President, Product Management, Location Intelligence at Precisely. Clarence has been with Precisely through the Syncsort and Pitney Bowes days and first joined Pitney Bowes in 2006. He holds degrees from the University of Pittsburgh and the University of Maryland. Clarence is based in the Washington D.C. area.

global

2021 Starts Off Right for These Global Traders

Burkhard Eling will become CEO and Executive Board spokesman of logistics provider Dachser. The former leader of Dachser’s Corporate Strategy, Human Resources and Marketing units will succeed Bernhard Simon, who will take over as chairman of the Supervisory Board of the Kempten, Germany-based family-owned company at mid-year.

Tim Thorne announced his retirement as president ArcBest less-than-truckload carrier ABF Freight, effective June 30. Seth Runser, ABF vice president-linehaul operations, will be promoted to the new role of ABF chief operating officer, effective Feb. 1, and he will become ABF president on July 1.

Paul Brady has been named CEO of 3Gtms, LLC, a global provider of cloud-based transportation management software based in Shelton, Connecticut. Brady, who has a long track record of success with start-ups, growth companies, and complex multinational businesses, succeeds Mitch Weseley, who retired to join the 3Gtms Board of Directors.


Brian Drees, who has more than 25 years of management/engineering experience, has joined ODW Logistics as the Columbus, Ohio-based company’s new senior director of Operational Excellence. And we can’t forget to mention that John Haber will now lead the small parcel division of Transportation Insight.

After 18 years as Pfizer’s cold chain and network solutions specialist, Matthew Tomkinson has joined Softbox as a Technical Solutions specialist. Softbox is a leading global innovator and provider of passive temperature-controlled packaging solutions for the pharmaceutical, life science, and cold chain logistics industries.

Jannie Davel has joined Delta Cargo as managing director-Commercial, while Vishal Bhatnagar has been promoted to managing director-Global Cargo Operations. Davel, who will lead the Sales, Alliances and Product Management divisions, hails from DHL Global Forwarding and Emirates SkyCargo. Bhatnagar most recently was Delta Caro’s director of Cargo Operations Performance and Customer Experience.

Geert Aerts will be the new director of Cargo & Logistics at Brussels Airport. He had been active in aviation the previous 17 years at CAE Inc. Aerts succeeds Steven Polmans.

B&H Worldwide, a leading global provider of aerospace time-critical logistics solutions, appointed Michael Haskins as its head of Global Sales. He was most recently at Tala (The Aerospace Logistics Alliance). 

air

How Will Ocean and Air Market Conditions Affect Your Shipping Decisions?

Global transportation—like many industries—has faced unparalleled disruptions over the past year. Now, as we head into 2021, there are new and different challenges added to the mix.

Many of our global shipping customers are up against the clock with Chinese New Year (CNY) approaching, while also navigating potential changes from a new U.S. administration. Of course, fast-changing consumer behaviors, port congestion, and continued uncertainty around the impact of COVID-19 continue to bring changes to the market as well.

Today I’m going to focus on how the ocean and air shipping markets have been affected and steps you can take to successfully account for these and other events.

Greater market demand overall

The global logistics market is forecasted to grow over 17% in 2021. And only a month into the year, that growth seems to be on track due to heightened demand across major global trade lanes. Volumes between China and the United States have increased by 30% compared to this time last year. It is likely the demand will continue past CNY, which falls on February 12, this year.

We historically see a spike in demand before CNY, but this year looks different from past years. Many companies are stockpiling and replenishing stock rooms in the wake of COVID-19 disruptions. And with a continued need for PPE and the dramatic uptick in ecommerce shopping, it’s no wonder there’s greater amounts of freight being moved right now.

Demand and disruption in ocean shipping

Ocean shipping capacity and port congestion

You’re most likely to see the most congestion and capacity constraints when shipping via ocean service in early 2021.

Significant increase in demand and equipment shortages in Asia have led to longer dwell times for vessels, which inevitably delays export shipments. In the United States, carriers continue to reduce the amount of exports in order to reposition empties back to Asia. Additionally, the uptick in vessel accidents due to inclement weather has added to the delays. Companies whose freight went overboard are not the only ones impacted, in fact the recent incident with ONE APUS resulted in all remaining freight being unloaded in Japan for further inspection. Inspections and transloading are likely to add considerable delays to a container’s journey.

Historically, ocean carriers announce the percentage of capacity that will be removed from the market during CNY. However, with the continued high demand and equipment shortages likely to continue through March, carriers have announced they will only remove 2-4%. This is down from the average 15-20% that we’ve seen removed in previous years.

Demand and disruption in air shipping

COVID-19 vaccine distribution

Air passenger travel is still down, and capacity for air cargo remains tight. Today, COVID-19 vaccine distribution has had minimal impact on capacity, but we’re closely monitoring the situation as it could and likely will change rapidly.

The majority of COVID-19 vaccines will not require inter-continental airlift, however, when doses do need to be transported via air, many airlines are already prepared to reposition capacity. When this happens, expect heavy demand from both Europe and India. And if/when this capacity is pulled from today’s already tight air market, your global supply chain may need to pivot in response.

With new COVID-19 strains and outbreaks, many countries are now requiring pilots and airline crews to quarantine or limit overnight deliveries. These changes will likely add to the inconsistencies and put pressure on air freight costs.

Successfully overcome shipping challenges

Monitor global events

Shipping across borders inevitably means customs and global compliance will play a vital role in your supply chain. It’s important to keep abreast of the changing global trade climate so your company can remain compliant and avoid customs delays. This is especially true with a new U.S. administration in place and Brexit in full swing.

While President Biden has indicated he does not plan to focus on trade and tariff changes immediately, he has already expressed his intention to approach trade differently than the previous administration.

Additionally, shippers both in and out of the UK will need to stay up to date on changing regulations as Brexit continues to progress, and any change may directly impact many supply chains.

Establish a plan for disruptions

Despite the challenges, it is possible to mitigate delays due to congestion and equipment shortages. We’ve been able to help multiple customers avoid 10+ day delays by routing shipments through a different port or shifting freight across modes.

Instead of trying to keep up to date about market changes from several news sources, you can trust a single information source to help you see how market trends will impact capacity and pricing. C.H. Robinson’s Global Forwarding Insights webpage provides a clear picture of rapid shifts in ocean and air capacity by aggregating current market information, like I shared above, in one easy to view place. With trade lane level detail, these market insights provided by industry experts are presented with an easy to understand summary of past and present market conditions so you can maintain flexibility, adapt to potential disruptions, and prepare for the most complex shipping challenges.

To dig deeper, connect with your logistics provider to develop a disruption action plan which is key to creating an agile, flexible, and well-rounded supply chain.

bakery packaging

Burgeoning Interest in Pre-Packaged Foods to Foster Bakery Packaging Market Growth 

The bakery industry is among the most prominent food sectors worldwide. Given the widespread preference for baked goods such as bread and cakes, the production of these items is witnessing exponential growth. In India, for instance, the production of bakery products such as biscuits, cakes, buns, bread, and pastries among others, is estimated to be over 3 million tons annually.

A majority of bakery products produced at both retail and wholesale levels have a considerably short shelf life at ambient temperatures. These foods a susceptible to spoilage due to contaminants like mold, which arises mainly from fluctuations in storage temperature and excessive water activity. One of the key ways to avoid these impacts is the use of proper bakery packaging.

In order to mitigate the risks of spoilage therefore, the bakery packaging market is making significant strides towards developing novel and innovative solutions in recent years.

The growing prevalence of frozen food products will drive the need for more robust packaging for bakery items

In recent years, the prevalence of frozen goods has seen a significant rise, mainly due to the extended shelf life they offer. Furthermore, as the use of devices like microwave ovens grows more popular, the introduction of frozen baked goods in the market has also grown exponentially, thereby propelling the need for robust packaging solutions.

One of the most promising baked food packaging solutions in recent times is the development of Modified Atmosphere Packaging or MAP, which uses a mix of nitrogen and carbon dioxide in the gas atmosphere to offer a suitable bakery packaging solution for frozen goods.

Baked items such as baguettes, pita, bagels, tortilla wraps, and other forms of bread are the most suitable items for MAP, as they have low water content, and are susceptible to spoilage due to microbes like mold.

The use of CO2 in modified atmosphere packaging solutions is also gaining rapid traction, as it helps to make the packaging easy to test for discrepancies like leaks.

Improper use and high contamination risks associated with baked goods packaging may impede market growth

The bakery packaging industry could face certain roadblocks to its growth, owing to potential product contamination stemming from foreign objects associated with packaging bags. Stringent control and safety protocols are required in order to mitigate the risk of these situations.

Furthermore, plastic packaging for bakery items is highly susceptible to product contamination, especially in areas like flour bins, scaling equipment, etc. Also, improper use and disposal of bakery packaging materials could lead to a higher risk of cross-contamination.

Use of flexible packaging emerges as a key trend for the bakery packaging market

Flexible packaging is gaining massive ground in the modern era, as an ideal solution for the transportation and storage of various bread and other bakery goods. These packaging solutions demonstrate significant benefits such as malleability, convenience, and a higher product-to-package ratio as compared to its counterparts, especially for storage on pantry shelves and countertops.

Flexible packaging, such as bags, pouches, wrappers, form-fill pouches, and others also offer many value-added benefits like lightweight, low transportation costs, and smaller carbon footprint, which has led to its rising adoption in the packaging of bakery items.

To that end, TIPA, a sustainable packaging developer announced the launch of a novel bio-based and compostable flexible packaging in the United Kingdom. While it demonstrates similar properties to regular plastic packagings, such as durability, impermeability, and transparency, TIPA packaging is able to biologically decompose in 180 days, becoming a soil fertilizer, similar to an orange peel. TIPA’s packaging solutions, which are printable on both sides, as well as sealable, are suited to the packaging of bakery items, fresh produce, and other such products.

Evolution of packaging materials and strong sustainability efforts are expected to generate lucrative growth avenues for the bakery packaging industry

Packaging trends have been evolving consistently over the years, with the emergence of custom baked goods packaging becoming a key contributor to bakery packaging market growth in the years ahead.

Key players in the industry are working towards developing innovative packaging solutions, in order to help bakery producers improve and maintain optimum food quality, enhance sales, whilst ensuring sustainability through reduced waste levels.

For instance, UK-based company Marks & Spencer have recently unveiled 100% widely recyclable packaging for its in-store bakery items. The novel packaging solution, which is made from paper with small plastic windows or translucent paper, can be collected for recycling purposes by more than 75% of the authorities across the UK. This innovation was part of M&S’s long-term target of making its packaging recyclable by the year 2022.

Rising demand for packaged foods in the COVID-19 period and the subsequent need for efficient baked goods packaging solutions

The global health crisis caused by the spread of the novel coronavirus in the past year has led to worldwide closures of bars, restaurants, and myriad other public food establishments, in compliance with social distancing directives. This has, in turn, increased the preference for pre-packaged bakery products, resulting in a significant shift in bakery packaging industry trends.

One of these shifts is the renewed demand for plastic packaging, which has raised concerns pertaining to the long-term effect of this packaging on the environment.

In response to these concerns, industry players such as Novolex company Waddington Europe have introduced rPET rigid packaging solutions, which allow retailers and customers to gain optimum baked good quality whilst ensuring sustainability. The company’s novel Eco Blend Pura range, which includes recyclable, 100% PCR (post-consumer recycled) rigid trays, for instance, is designed to be an ideal bakery packaging solution for the circular economy concept while catering to the heightened demand for packaged foods during the pandemic.

Bakery goods and other snack foods have specific storage requirements that are addressed by the evolution of novel packaging solutions in recent years, in the form of laminates, thermoformed trays, and films. Since the demand for packaging solutions with advantageous properties such as printability, machinability, and cost-effectiveness is set to witness continuous growth in the modern era, the bakery packaging industry is bound to follow a positive growth trajectory in the years to come.