“Price is what you pay, Value is what you get.”

Hot ideas and designs for Cold Stores flooring

Twintec has built a strong world-wide reputation for customer focused, high quality service in industrial concrete floor slab design and construction, providing a tailor-made product for our customers around the globe, affirms Adriano’s Huskins.

The distinctive ‘Design-Build-Guarantee’ package, a signature offering from the Twintec Group, demonstrates how the premier flooring company takes full responsibility for all its projects and contracts-offering proven unparalleled level of support, quality assurance and peace of mind.

Twintec adds value to commercial, industrial and retail properties world-wide.

Cold stores are an excellent example where the interface management between sub-base requirements, loads, choosing the correct heating system, placing of the heating system, cold store wall panels, door openings and transition areas into ambient area, racking system (often as in this case, mobile racking), floor flatness requirements and other requirements need close attention to the engineering and construction detailing.

This is where the knowledge and experience of Twintec adds value not only for the end user but also for the investor, facility manager, general contractor, the local interdisciplinary building teams, and other stakeholders. This value cannot be underestimated notably in emerging markets.

Adrianus Huijskens has over three decades of experience within the industrial flooring market, a specific knowledge of the African continent and a proven track record at the highest level of delivering customer value. He works as part of the Twintec International Business Team, whose focus is on international developers and end users delivering sustainable solutions worldwide.

CSK Cold Store, Tatu City, Kenya

CSK is building a cold chain network across East Africa and the first of its kind cold storage facility is in Tatu City, Nairobi, Kenya. The cold store required a 14,000sqm, super flat DM2 ‘jointless’ concrete floor slabs, able to deal with temperatures ranging from 24 degrees to minus 30 degrees and include the placing of rails inside the concrete floor slab for mobile racking. Twintec provided CSK their unique total offer concept solution Design-Build-Guarantee.

It’s design & it’s all about the details in the early planning stage of the facility, Twintec engineers were involved not only to design the concrete floor slab, but to work with the project team to optimise the cold storage building.

CSK Testimonial

“There were several challenges on this project which needed to be overcome and this was professionally coordinated by Twintec to the point there were no delays or issues, and the work was carried out in record time to the highest standards.

From the onset they displayed an innovative, economic and proactive approach to service the project needs. They have been thoroughly professional in their conduct which resulted in a high-quality product.”

Lionel Haggard, Technical Director, CSK.

Coordinating the interface management

and demanding technical requirements between all disciplines was a critical success factor for the CSK facility from coordinating with the local engineer for the preliminary structural designs (substrate, sub-base and floor) and then with other constituents every step of the way to the completion of the project.

The integral involvement of building supervisors and contractors was paramount for the final design solution. This resulted in six sub-designs as Twintec customises the static design per loading area.

The coordination of interface management (earthworks, floor heating, insulation wall panels and other key considerations) is pivotal to make the designs work.

Equipment

Twintec commits to its sustainability values throughout every aspect of a project and used the Top & Screed Mini Electric Super flat equipment for the first time in Africa.

The use of electrical equipment contributes to the reduction of carbon dioxide and to the working environment of our workers. This is a key requirement for Twintec’s commitment to a sustainable future.

The TS 6100e is equipped with the state-of-art laser system contributing to achievement of high tolerance requirements, easy to use and maintained by off-site remote centralized computer diagnosis.

Execution–There is no substitute for experience

With all the concrete floor slab details implemented and controlled and the flatness requirements adapted to suit the MHE (material handling equipment), racking type and lay out, all requirements are fixed in working and execution drawings.

Materials–The right choices

A key part of the preparation is to analyze the concrete batch plant, locally available materials, the quality of mixer trucks with detailed reporting on status and improvements to make.

Nothing is left to chance with the concrete mix design tested with the local Kenyan materials at a laboratory in Europe, mix design trials and adjustments at site under Twintec supervision.

The site batch plant went through a full assessment two months before execution, adjustments made and closely monitored during execution.

Fibers, joints, and hardeners were selected based on a number of factors, it is about making the right choices technically, economically, and environmentally.

Twintec’s international skilled execution team working closely with a highly experienced on-site Operations Manager ensured that the DM2 tolerance was attained within the project timeline.

Twintec is uniquely placed to offer advice and to provide tailor-made design solutions as a result of its long-term relations and experience worldwide with real estate investors, developers, consultancy firms, contractors, regulators, end users, local authorities, standards committees, and universities.

There is an enormous amount of knowledge behind each project, this knowledge is where TWINTEC makes the difference to the rest of the market. This knowledge is needed to ensure quality and security and adherence to the highest quality standards, and this is the value each client gets.

Price is what you pay… .value is what you get. This is our adage.

Are container rates about containers or what is in the containers?

Give me the freight bill, or give me the inventory…

We need some perspective on rates that have taken discussions off track. For three years, container rates have gotten a lot of attention in reports and news posts. First, there was how high they were. Then it was how these are dropping, spot rates and contract rates. There were complaints by shippers when they were high; then there were happy dances when they dropped.

It has almost been a never-ending story of price hikes and drops, writes our regular commentator and contributor Tom Craig, President LTD Management, Pennsylvania, USA, a leading authority and professional consultant on logistics and supply chain management and regular contributor to Global Supply Chain—Editor.

This is for those who are directly or indirectly involved with container shipping. These comprise CFOs, CEOs, Supply Chain Management professionals, Purchasing personnel, freight forwarders, container lines, logisticians and 3PL service providers.

Rate related stories generally make it to the headlines. However, these stories miss something, some context. Rates were presented like stock market prices. Stories also did not cite the decades of shipperfavorable rates…and there is more.

There is the container…. but what about what is in the container? What does it mean as to pricing? Or does it matter? Is it—a rate is a rate? Hint: Container shipping is a derivative of supply chains.

First. Let us back up on how we got here.

Before the global pandemic, container rates got token attention beyond the timing of negotiating contracts. There are two types of shippers—Beneficial Cargo Owners (BCOs) and freight forwarders. Each has its agenda.

Negotiating powers

Negotiating power was with shippers. The soft rate market made for low volumes committed in contracts so shippers could play the spot market. Contracts recognized spot market prices.

Container lines had lost money for many years. Remember, this is a capital-intensive industry. Pre-Covid there was concern that some carriers would go bankrupt or be acquired, reducing the shipping choices, and possibly heading toward an oligopoly for container lines.

Covid started with a shutdown of much of origin shipping, especially from China. That meant concern for what would happen to carriers. Then the pandemic hit destination countries and created questions on what to do with containers loaded and shipped. Then came a surge in product demand and, in turn, shipping demand. We went from shutdown to a shipping frenzy.

Surging rates

Rates and prices surged to getting containers and being able to get loaded on a vessel and shipped. Then prices went crazy with the demand vs supply for shipping. All this created a power shift from shippers to carriers.

There was resentment with the change. Then consumer market demand slowed. And with it, demand for shipping. Rates began to drop.

Four Points: Before we get deeper into the topic of what container rates str about, here are four points for perspective to consider.

Point 1: Shippers make service contracts with carriers. The question is whether they are true contracts or loose agreements.

Point 2: What is the service in a service contract? How is it defined? Is it a complete service? How contractually firm is it?

Point 3: There are two shippers—beneficial cargo owners (BCOs) and freight forwarders. Each has a different need with rate and any contract negotiations.

Point 4: After years of shipper dominance in rate negotiations, the radical power shift with the pandemic, and the drop in demand, a question is whether the relationship between shippers and carriers is a collaboration or a mutual vendetta. The answer can misdirect negotiations.

The Container: What is often missed by container lines and freight forwarders is, for BCOs, that rates are not about containers. They are about the products—the inventory-- that go in them. Stories in the past few years about rates have missed this key point.

Containers are really about the inventory they convey and is sold by distributor and by retailers in stores and e-commerce and by manufacturers. And the challenge and the fun that brings us to where we are for the next round of service contracts.

A, B, C Inventory: There are three types of inventories whether it is year-round or seasonal products. These designations cross product categories.

‘A’ items are those with high volume and high sales margin. Some may say it should be revenue. But sales margin reflects profit potential. ‘B’ items have less volume and margin. They may often be compatible with ‘A’ items. ‘C’ are slow movers.

Negotiations: Remember, it is not about the container. It is about what is in the container. Besides freight price, this is also about the service needed for each inventory.

What BCOs need to do is assess their planned activity. This includes drill down and focus as to supplier and origin. No part of the organization has more data than the end-to-end supply chain. That data and artificial intelligence provide the base for the analysis, negotiation priorities, and rate evaluation. It can include converting volumes into the number of containers.

Result: Not only guiding negotiation, but the approach also provides context for prioritizing and evaluating negotiation rates both contract and spot. A rate is not a rate. It differs by product importance and offers increased value to the company. Not only BCOs, but container lines, 3PLs, and forwarders with major customer accounts should consider doing this. It creates insight and value for all parties.

Conclusion: Container rates are not black and white—not a cheap or not event. There is also the service that underlies the prices. They are about moving products in trade. That should not be missed.

We are in a period of continuing supply chain disruption, geopolitics, climate changes and other uncertainties. Who knows what other surprises lie ahead?

Supply chains are large, complex, and nonlinear. Look beyond contract and spot rates which are a derivative of what is happening. Think of how to position your supply chain to adapt and create resilience and look at the big picture.