AAR Damage Prevention and Freight Claims Conference. Collaborative Partnerships - Developing Solutions Constellation Brands

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1 AAR Damage Prevention and Freight Claims Conference Collaborative Partnerships - Developing Solutions Constellation Brands 25

2 Thermal Protection Securing Temperature Sensitive Wine for Intermodal Transit Securing wine loads for safe, fluid & damage-free delivery Maintain wine quality by optimizing temperature protection strategies 26

3 Cargo & Thermal Protection Somewhat contrasting, yet complimentary REAR VIEW- WITH THERMAL FOCUS AREA REAR VIEW- WITH SIDEWALL FILLERS & THERMAL BLANKET INSTALLED 27

4 Where Did It Start? Spring of 2012 The Constellation Concept! 28

5 2 9 ORIGINAL LOADINGS INCONSISTENT USE OF VOID FILLERS INSUFFICIENT DID AIRBAG PROTECTION INCONSISTENT BETWEEN SHIPPING FACILITIES

6 Where Have We Been? Pallets as Void Fillers Two Void Fillers Cargo Related Setouts Sharp Corners Against the Airbag Foil Backed Void Fillers Styrofoam Panel Thermal Test 30

7 Continued Progression Foil Backed Slipsheets Insulated Slipsheets Foil Backed Thermopak Fillers Temperature Sensor Test Loads Crushed Folding Fillers Folding Fillers 31

8 Constellation Challenges with Wine Wine Freezes in Winter Wine has Cold Stability challenges when cold but not frozen Summer heat can push corks Summer quality degradation at high temperatures Winter can freeze ~30 degrees F (varies dependent on alcohol content) Summer maximum target ~85 degrees F Minimize any sudden temperature changes, gradual change is best 32

9 Historical Intermodal Loadings Typical load of 22 2,000 lbs/pallet Used drop down center void fillers, product maximum of 2 from sidewalls Used one single 48 DID airbag at the rear of the load All intermodal loads covered with protective blanket, year round Product on slip sheets, except for extreme winter where pallets used 33

10 Concerns with Historical Methods Loading patterns not approved by railroads Excessive summer temperatures caused cork push Cold winter temperatures still caused product freeze Proximity to sidewall was a thermal challenge Experienced occasional load shift in transit 34

11 Change Process Evolution Three Class 1 railroads plus two major shippers together Common training Agree on one standard, approved by all Evaluated various temperature protection alternatives Double insulated blankets Insulated sidewall protection with normal dunnage Overlapping insulated blankets with duct tape Insulating material applied to trailer walls Set aside some alternatives as less than optimal Boxcar reefers OTR reefers Intermodal refers Cost and Availability 35

12 New Methods for Winter and Summer One common method for winter and summer Two 48 x96 DID airbags, distributed at midpoint and rear of load All product center loaded in container- load must be tight! Collapsible bulkheads at sidewalls ProTek blanket applied on all loads Pallets used to moderate exposure to floor temperature extremes New moderate temperature method developed and implemented Two 48 x96 DID airbags Product 2 off the sidewalls with a tight load! Drop down void fillers along the center Bulkheads at airbag locations 36

13 Key Lessons Learned Physical separation of goods from sidewall by 6 provides good protection Still no viable cold temperature alternatives to use of pallets ProTek blankets clearly great alternative for top side insulation Collapsible bulkheads a major win over historical methods 8 X improvement in warehouse storage density for dunnage One inbound truckload of collapsible bulkheads cover 150 outbound loads versus standard bulkheads covering 18.7 outbound loads Collapsible bulkheads only a minor increase in cost over standard bulkheads 37

14 Temperature Testing 38

15 Test Model THERMAL TEST LOAD WITH SUNRISE THERMO-PAK VOID FILLERS CA - NY WITH THERMO-PAK BULKHEAD, SIDEWALL FILLERS & PROTEK CARGO BLANKET INSTALLED T T T T S T T T T S Paksense monitors located under blanket Paksense monitors suspended above blanket S = SECUREMENT SUPPORT T = THERMAL PROTECTION 39

16 Conduction can wreak havoc on temperature sensitive cargo! Temperature excursions experienced when shipping cargo can often be traced to conductive heat transfer. These next few slides will document the major influence loading patterns have on these temperature excursions and how to mitigate them. A moving shipment vs. a sitting shipment and the difference in temperature excursions. 40

17 Minimize Conduction by Center Loading By placing pallets at least two inches from the side wall you reduce conductive heat transfer by 85% 41

18 Wall Spacing Emphasis Winter Time Wall Monitor: Low 20 F Monitor 3 from wall: Low 44 F Ambient Temp: Low 10 F By placing the pallet three inches off the side wall we gained 22 degrees Ambient Temperature was 10 Degrees colder than the wall temperature 42

19 Pallet Spacing Emphasis Winter Time Floor Monitor: Low 12 F Pallet Monitor: Low 34 F Ambient Temp: Low 10 F By simply placing the product on a pallet we gained 22 degrees in temperature Ambient Temperature was only 2 Degrees colder than the floor temperature 43

20 Wall Spacing Emphasis Summer Time Pallet / Side Wall: High 94 F Pallet off Side Wall: High 74 F By placing the pallet off the side wall by three inches we gained 20 degrees in temperature 44

21 Summer Shipment Moving vs. Stopped Day 3 Shipment Moving Ambient High: 91 F Day 3 Shipment Moving Above Blanket High: 101 F (11 F hotter than ambient) Day 10 Shipment Stopped Ambient High: 90 F Day 10 Shipment Stopped Above Blanket High: 125 F (35 F hotter than ambient) 45

22 Traditional Wine Loads CASED GOODS WINE IN 2-2 OFFSET PATTERN SECURED WITH DID AIRBAGS CASED GOODS WINE AGAINST THE WALL SECURED WITH DID AIRBAGS & DROP FILLERS 46

23 Fair Weather Loading Reduces wall contact by 90% over traditional loads 47

24 Extreme Weather Loading Reduces wall contact by 90% over traditional loads 48

25 Questions? John Brainard BNSF Load & Ride Solutions Rick Anderson Constellation Brands US Justin Garcia Protek Cargo Systems 49