Pharmaceutical & Healthcare Ocean Shipments

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Julian Andrews
5 years ago
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1 Pharmaceutical & Healthcare Ocean Shipments Daniel Piotrowski Director Reefer Trade Europe September 18th 2017

2 Cargo is not handled Why Ocean Shipping? After stuffing until unstuffing Cargo Security Help meet GDP guidelines Cost effective Environmentally friendly

3 Transport and CO 2 Emissions CO2 emissions of various freight transport methods * Air (Boeing ) 552 Road (heavy truck) 50 Rail (electric) 18 Rail (diesel) SX Class container ship (>8000 TEU) g/ton-km * Source: The Network for Transport and the Environment

4 What does Success mean? Physical service Providing the correct equipment In good condition In a timely manner Timely Collection and Delivery When we are responsible for Door moves Vessel Schedule reliability Timely departure / arrival

5 What does Success mean? Delivering your cargo: Where we said we would When we said we would In the same condition we received it In return for the agreed price

6 Key: Identify all relevant information During the initial inquiry Front loading Origin Destination Volume Required equipment Requested validity Commodity Temperature setting Standard shipment details required for all reefer cargo

7 Front loading Pharmaceutical shipments represent about 1% of OOCL global reefer volumes For Pharmaceutical shipments We request additional information Commercial value of the cargo Acceptable temperature tolerance range Maximum acceptable power off period Number of pallets per container Why?

8 Risk Management Pharmaceuticals have unique features Low product density More rapid loss of temperature Compared to deep Frozen products Temperature sensitivity set point +/-3C Typically +2C to +8C or +15C to +25C What is the safe temperature range? Relatively high Commercial Value of cargo Most under $5 million per container Some much higher High Value = over $500k per container (OOCL)

9 Risk Management High Value cargo what do we do? Route risk assessment Direct Port to Port preferred Review of T/S services own service vs public feeder Very cautious when considering intermodal (rail) or door (truck) Too many events can happen outside Carrier control Ensure young equipment assigned <5 years old More reliable Most modern technology

10 Risk Management High Value cargo what do we do? Ensure GPS fitted containers are assigned: Performance monitoring, auto-alerts Visibility to customer Special Handling instructions to minimise power-off: To terminals during cargo receipt / release To Vessel Master during cargo operation Special Stowage instructions: Most secure, accessible locations On Deck; Center Bays and Rows, 1 st or 2 nd tier

11 Stowage vessel plan On Deck Centre Bays

12 Stowage cross section Centre Rows 1 st or 2 nd Tier

13 High Value Shipments Ocean Carrier liability: Is governed by international law and rules: Hague-Visby rules COGSA (US Carriage of Goods at Sea Act) Is based on the commercial value of the cargo; Is limited by the number of packages on the B/L SDR (US$923 )per package (Hague-Visby) USD 500 per package (COGSA)

14 High Value Shipments Carrier s concern with Pharmaceuticals: Higher commercial value than normal shipments. More sensitive to temperature changes More likely to be the subject of claims Which will be higher than average Carrier insurance through P&I clubs funded by Carriers More claims (total value) = increased premiums at renewal Only 1% of volume (OOCL); disparate impact Need to balance risk and reward

15 Communication Paths My OOCL Reefer View and download container temperature, relative humidity and location data. Simple, anytime and anywhere container data access through My OOCL Centre 24/7 Dedicated Support Team Communicate via hotline, , online-chat to offer immediate assistance when needed Proactively monitoring of container temperature, compared to data recorder which can only be accessed after shipment completion.

16 Key take aways Important to identify requirements up front Organise communication flow 2-way transactions Exception management Proactive monitoring / timely communication Mutual success = Cargo delivered where and when agreed, In the same condition received, For the agreed price

17 Thank you!

National Carrier s Regulations

National Carrier s Regulations Country: Australia as at 30 June 2009 Legal Basis Period of Liability Extent of Liability / Limits Notice of claim after recept of damaged goods Limitation period Post -