13 th CARGO CLAIMS & LOSS PREVENTION CONFERENCE
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1 13 th CARGO CLAIMS & LOSS PREVENTION CONFERENCE
2 13 th CARGO CLAIMS & LOSS PREVENTION CONFERENCE DAY 1 3 October 2017
3 13 TH CARGO CLAIMS & LOSS PREVENTION CONFERENCE Welcome & Introduction Address Christian Piaget Senior Manager Cargo Customs and Claims IATA
4 IATA Competition Law Compliance Do not discuss: Pricing, including fares, service charges, commissions, etc. Bids on contracts or allocation of customers Geographic/Product market allocations and marketing plans, including Expanding or withdrawing from markets Group boycotts Your commercial relations with agents, airlines or other third parties Any discussion aimed at influencing the independent business decisions of your competitors You will be asked to leave the meeting, and the meeting may be terminated, if the above-mentioned discussions occur. Remember: All discussions count, even informal ones outside the meeting room!
5 Thank you to all our Sponsors!
6 13 TH CARGO CLAIMS & LOSS PREVENTION CONFERENCE Keynote Speech Marcel Fujike SVP Products & Services Global Air Logistics Kuehne & Nagel
7 13 th IATA Cargo Claims & Loss Prevention Conference Marcel Fujike Barcelona - October 3, 2017
8 Click to edit title. No trust Missing technology No visibility Past Customs Haulier Haulier Partner agent Airport Handling agent Shipper Forwarder Carrier No responsibility «Passing the buck»
9 Click to edit title. Present Customs Haulier Partner agent Forwarder Haulier Airport Handling agent Shipper Carrier
10 Click to edit title. Improving the situation + Cargo IQ + eawb + CEIV Pharma + Awareness! Not mandatory! Duration! Concept! Cost! Not enough Digitalisation + Cargo Communities + Tripartite approach + Conferences! Isolated approaches! Shipper involvement! Trust / willingness + «Disruption» hype + Real-time monitoring + Technology push + Big data / Cloud! Investments! Missing standards
11 Wishing you a great conference!
12 13 TH CARGO CLAIMS & LOSS PREVENTION CONFERENCE Case Studies Bartholomew Banino Partner Condon Forsyth Francis Montbach Partner Mound Cotton Wollan & Greegrass LLP
13 13 TH CARGO CLAIMS & LOSS PREVENTION CONFERENCE Industry Outlook Christian Piaget Senior Manager Cargo Customs and Claims IATA
14
15 MC 99 implementation
16 e-awb implementation August 2017 Cargo Tracker: /index.aspx 3-5 October 2017 Barcelona, Spain
17 4000 Number of Cargo Claims/Airlines
18 0.1800% Average Number of Claims in % % % % % % % % % % October 2017 Barcelona, Spain
19 Average Number of Days until Claims Settlement October 2017 Barcelona, Spain
20 20 Cargo Claims and Complaint Handling Training
21 13 TH CARGO CLAIMS & LOSS PREVENTION CONFERENCE Session on Best Practices in Claims Management Moderator: Alberto Antognozzi, Marsh Clearsight Panelists: Courtney Buckwalter, United Airlines Michael Bor, Kenya Airways
22 11-13 October 2016 Brussels, Belgium
23 11-13 October 2016 Brussels, Belgium
24 Networking Break 10:30 11:00 Thank you to all our Sponsors!
25 13 TH CARGO CLAIMS & LOSS PREVENTION CONFERENCE The Cost of Doing Business: How do Sales Relations affect Claims? Moderator: Nicolas E. Pantelopoulos Kaplan, Massamillo & Andrews LLC Panelists: Sebastian Cosgrove, Air Canada Kristian Scayola, United Airlines Dave Suhajda, Polar Air Cargo Itrath Usman, Emirates Skycargo
26 Networking Lunch 12:30 14:00 Thank you to all our Sponsors!
27 13 TH CARGO CLAIMS & LOSS PREVENTION CONFERENCE Judges Corner Moderator: Barry Alexander Partner Schnader Harrison Segal & Lewis LLP Panelists: Rainer Amann, Partner, Urwantschky Dangel Borst Holger Burskens, Partner, Arnecke Sibeth Chris Chatfield, Partner, Kennedys Law Alvaro Cala, Partner, Brigard & Urrutia
28 13 TH CARGO CLAIMS & LOSS PREVENTION CONFERENCE Lucky Draw #1
29 Networking Break 15:30 16:00 Thank you to all our Sponsors!
30 Joint Session with Cargo Claims & Loss Prevention: the Carriage of Pharmaceutical Products Moderator: Dan Soffin International Aviation Legal, Commercial and Operations Expert Panelists: Ruud van der Geer, Associate Director, Supply Chain Management CoE, MSD Nina Heinz, Global Head of Network & Quality, Temperature Management Solutions, DGF Claus Nickel, Vice President Cargo Operations Europe, Swissport Sebastian Cosgrove, Manager, Cargo Customer Relations, Air Canada
31 PHARMA SHIPPING STRATEGY Barcelona, 3 October 2017 IATA Air Pharma Conference
32 Robust Temperature Controlled Logistics for Manufacturing Companies Product Handling Pyramid Pharma Shipping Strategy WHY? 1. COMPLIANCE True North MSD requirements and expectations for robust temperature controlled logistics 2. Define Control Limits PRODUCT STABILITY WHAT? 3. Define Control Measures PROTECTION 4. Ensure Process Visibility MONITORING HOW? 5. Monitor Performance KPI TRACKING
33 Product & Process Temperature Control Limits Pharma Shipping Strategy Define Shipping Control Limits What to Control? Option 1 Option 2 Allocated Stability Data Shipping Range Label Storage Allocated Stability Data Shipping Range Label Storage Full use of allocated stability data for Transportation Focus on Process Capability & Control within the allocated stability data Option 3 Allocated Stability Data Shipping Range Label Storage Shipping at labeled storage conditions
34 Product & Process Temperature Control Limits Pharma Shipping Strategy Define Thermal Protection Systems/Controls Option 1 Allocated Stability Data Shipping Range Label Storage Product + Lane Monitor Thermal Protection Handling Shipping Range EXAMPLE GC Service Option 2 Allocated Stability Data Shipping Range Label Shipping Range EXAMPLE PIL + COL Option 3 Allocated Stability Data Shipping Range Label Shipping Range EXAMPLE ACT
35 THANK YOU Ruud van der Geer MSD Enterprise Solutions Deliver CoE Product Handling EMEA
36 Air Pharma & Claims Panel Sebastian Cosgrove, Air Canada Cargo Carolyn Van Vliet, Air Canada Cargo
37 Air Pharma Overall market Pharma shipments are increasing! While still a smaller proportion compared to general cargo for passenger airlines, bookings are increasing for specialized commodities under the Cool Chain Umbrella. *IATA TO SHOW INDUSTRY GRAPH OF PHARMA SHIPMENTS COMPARED TO OTHER COMMODOTIES. INSERT IATA GRAPHICS HERE
38 State of Affairs Passive Active
39 Offerings Carriers can: -Take steps to provided end-to-end visibility; -Take steps to fully document shipment movements, temperatures and other customer requirements; - Offer temperature controlled areas; - Offer steps to provide greater temperature control throughout warehouse and ramp movements between cargo facilities and aircraft; -Offer clear and concise handling information to all parties involved to clarify expectations - Aligned understanding of what is being sold versus what is being delivered
40 Limitations Limitations can vary based on the carrier capabilities such as infrastructure, processes and outsourced activities. Temperature-controlled facilities (Deep Frozen [-50 C], Frozen [below 0 C], Refrigerated [2-8 C], Controlled Room Temperature [15-25 C], Extended Room Temperature [2-25 C]) Precise temperature control during transportation (ramp / onboard) Standard Operating Procedures (SOPs) Real-time visibility (lack of technology, processes or infrastructure) Compliance Selling the product what promises were made to the customer versus the airline capabilities? Acts of God
41 General Cargo versus Specialized? Given the nature of Pharma (regulated and time/temperature sensitive), these shipments should always be booked as business class ; however, ambiguity in the marketplace can lead to these specialized bookings moving under the economy umbrella.
42 Overview of potential carrier issues Challenges include: Lack of contact details for emergencies (24-hour contact) Exceptions to the general cargo versus specialized cargo (promise specialized but sell general) Multiple temperature ranges at origin versus destination Packaging should be sufficient based on the commodity, temperature requirements, booking classification and trade lane profiles. Complex handling further complicated by insufficient packaging or time constraints (i.e. stretching the passive environment to fulfill active container needs) Misinterpretation of product offerings and airline capabilities Use of undeclared temperature loggers (which can ultimately impact shipment movement based on DG limitations) Human Error
43 Claims Experience Expectations versus product offering Interpretation of policies and procedures by all stakeholders involved Packaging continues to remain an ongoing issue Varies based on the booking classification, commodity, trade lanes and handling capabilities of the airline. Temperature requirements printed on the waybill Cannot offer specific temperature range(s) at all times; Temperature requirements on shipments that are improperly booked.
44 Why are customers claiming? Passive temperature deviations Storage (not kept within request temperature range, i.e. cooler) During transportation After delivery Active temperature deviations Unit failure and/or failure of carrier to follow-up SOPs Failure to move as booked Missing documents Damage (packaging damage) Lack of handling documentation can lead to perceived service failure claims
45 Case Study International Pharma shipment (inbound from Europe) connecting domestically to its destination. For example, CDG YUL YVR or CDG JFK ORD. Pharma shipment is retrieved from origin aircraft and staged for transit flight to final destination. Total transit time is 5.5 hours Pharma shipment is not stored in desired temperature range during transit due to operational restrictions (time restraints) and staged outside (away from extremes but not in a facility) Placing shipment in a cooler would bust the connection; Shipment did have temperature requirements printed on waybill. Customer ultimately claimed for temperature deviation during the transit of the freight. Claim denied due to insufficient packaging requirements for the commodity based on the overall time of the journey which was known to the customer at time of tender.
46 PHARMA COMPLAINTS & CLAIMS: A FORWARDER PERSPECTIVE DELIVERING HEALTHCARE TO THE WORLD Nina Heinz, Global Head of Network & Quality, Temperature Management Solutions IATA Air Pharma, Barcelona, 3-4 October 2017
47 DHL Air Thermonet Network of Certified Stations DHL Air Thermonet Global Network Coverage Current (2017) 32 IATA CEIV SFO LAX TNX Stations 104 Under Consideration 4 BOD, CMB, FLR, DEN CGN BER BFE/FMO SNN MAN DUB AMS CPH FRA, HAM, LEJ ORK LON BRU MUC, STR VIE BSL, GVA, ZRH LNZ PAR, LYS, SXB BOD MIL MAD BCN FLRROM YYZ YUL LJU MSP BUD ORD BOS IND JFK IST DENCVG PHL MLA TLV PEK SEL TYO DFW ATL RDU DCA DEL CAN MIA CAI SHA OSA IAH SZX NGO MEX GUA AMD HYD TPE SJU DXB HKG SJO CCS BOM BKK MNL PTY VLN BLR SGN BAQ LOS CMB KUL BOG SIN UIO NBO JKT(CGK) LIM SCL RIO SAO(VCP/GRU) MVD BUE STO HEL JNB CPT MOW (DME/SVO) PER MEL SYD AKL
48 DHL Preferred Life Sciences Carrier Program Life Sciences quality agreements Customer complaint handling & escalation Lane Risk Assessments Risk based onsite & remote audits Joint pharma workshops Performance monitoring & monthly scorecards Regular business reviews Developing pharma capabilities on other partners
49 Challenges in Managing Pharma Complaints & Claims Patient safety SISPQ GDP compliance High shipment value Complexity of the supply chain Very demanding customers Short timelines Product release Replacement shipment planned for tomorrow
50 What s different for life sciences customers? Temperatures! Data loggers QA release Excursions Root Cause Analysis (RCA) Corrective & Preventative Actions (CAPA)
51 Cooperation, trust & continuous improvement Industry Initiatives Partnership Transparenc y Standardizati on Sharing Expertise Communicati on Controls
52 THANK YOU Nina Heinz Global Head of Network & Quality Temperature Management Solutions DHL Global Forwarding Phone nina.heinz@dhl.com
53 IATA Air Pharma Conferences CLAUS NICKEL, VP CARGO OPERATIONS EUROPE Barcelona, October 3, 2017
54 The differences between Pharma consignments and general Cargo (from a GHA perspective) 1 SLA Shipper requirement as per corporate quality management standard 2 Additional monitoring and measuring (time & temperature & humidity) during the handling process. 3 Infrastructure: Mapped temperature zones (various framed temperature zones, mainly 2-8 and Degree Celsius) as basic standard. Ramp solutions if available (i.e. Cool dollies) 4 Special acceptance procedures (dedicated zones, temperature guns, milestone management). 5 Time frames (SLA) Speed of processing for constant temperature control 6 Proof of handling capability GDP compliance and certification programs as CEIV (includes special trained staff). 54 Swissport International Ltd.
55 Do GHA s face significant issues on the ground at time of handling sensitive pharma shipments? 1 Pre-planning phase: Often Ground handling partners are not involved in stakeholder discussions (carrier, freight forwarder, shipper). 2 No time taken between carrier and GHA to align with carriers pharma product and actual GHA facility and operational processes on the ground, from acceptance to aircraft bay. 3 Business awareness GHA are at risk of underestimating strict handling regulations from the pharma industry and its stakeholders due to insufficient pre-information 4 Lack of (constant) training 5 Storage space (pre-)allocation SLA management Swissport International Ltd.
56 Challenges of ground handling facilities vs. shipper / freight forwarder requirements 1. GHA infrastructure limitations with regards to size and availability 2. W/H buildings are often on long-term rent from local airport authority 4. Contractual limitations most contracts between carrier/gha include 60 day exit clause ROI at risk?! 5. No volume commitments from shipper/airline side in written to support heavy investments 3. Huge investments (both infrastructure and operational processes) required to adapt to shipper / FF requirement Swissport International Ltd.
57 Stakeholder communication from GHA perspective Still NOT SUFFICIENT, because Silo approach in the concerned industry No real sharing of data in advance Data logger to be shared with GHA to understand where shortfalls in temperature control are at the airport Improvements in stakeholder communication recognised BUT must develop further on Swissport International Ltd.
58 THANK YOU! Swissport International Ltd. P.O. Box 8058 Zurich-Airport Switzerland
59 13 TH CARGO CLAIMS & LOSS PREVENTION CONFERENCE Day 1 Closing Remarks
60 Thanks to Welcome Reception 18:00 19:00 & for sponsoring the Welcome Reception!
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