In the Spotlight Food Logistics 2013 (lowres) by natascha

In the Spotlight Food Logistics

S p o t li g h t o n holland fresh group

Plenty of opportunities for Dutch Food Logistics

Table of Contents Holland Fresh Group: Plenty of opportunities for Dutch Food Logistics

ADB Cool Company, cold store with custom made logistics and IT

Expansion Kloosterboer continues with two new warehouses in Rotterdam

The air cargo industry is flying into the cold

AM-Solution’s smart reefer technology

ABC Logistics hits the water

Smith-Holland offers solution to R40 issue. ´TMA comparable to time bomb’

Balancing quality and cost

There are plenty of opportunities for the Dutch food logistics sector. More and more cargo which requires additional treatment and distribution is moved to the Netherlands. Furthermore, new markets are emerging. This says Ger van Burik, coordinator of Holland Fresh Group.

Once again, the Dutch food sector will be well represented at Fruit Logistica in Berlin in February 2013. Holland Fresh Group, which organises presentations at foreign fairs for Dutch companies active in the fields of fruit and vegetables, has a pavilion of three thousand square meters where more than one hundred companies will present themselves. In addition to trading companies, logistics service providers are represented as well. Ger van Burik, coordinator of Holland Fresh Group: “This is how things have developed over the years and why not? Transport is essential to our industry. The greenhouse farming sector is also joining us. It is stagnating in the Netherlands due to the economy, but there is plenty of demand abroad.”

Concentration in the west

In the Spotlight Food Logistics In the Spotlight Food logistics is a publication of NT Publishers B.V., P.O. Box 200, 3000 AE Rotterdam, The Netherlands. General Manager: Michel Schuuring, Publishing Manager: Arie van Dijk, Sales Manager: Yves Vermeulen, Design: Natascha van Hornsveld, Coordination: Diana Kamp, Editor: Wieger Favier, Karin Kosmeijer, Marcel Schoeters, Kris Zeuwts, Translation: Dean Harte. Printer: Drukkerij De Bie bvba. Distribution: with Nieuwsblad Transport (Netherlands) and De Lloyd (Belgium). © NT Publishers B.V. Rotterdam, January 2013, www.ntpublishers.nl Tel. +31 (0)10 280 10 25

In the Spotlight Food Logistics I January 2013

The Dutch fruit and vegetables sector is concentrated in the west of the country. Important regions include the so-called Westland and the areas around Barendrecht and Waddinxveen. Beyond the Randstad, substantial quantities of vegetables and fruit are produced in the region of Venlo. The transport and distribution of fresh produce is predominantly carried out by Dutch logistics service providers; these are often larger companies.

In the Spotlight Food Logistics I January 2013

S p o t li g h t o n holland fresh group

According to Van Burik, the sector is generally satisfied with the logistics service providers. “They are highly professional, very well-organised companies which are often also certified.” At the same time, he has noticed an increase in the number of transport companies from Eastern Europe. Importers from countries like the Czech Republic and Lithuania often send their own trucks to collect cargo which is produced in the Netherlands or arrives in the port of Rotterdam from overseas. This has soared in recent years. “Russia is now the third most important market after England and Germany. Some Dutch transporters have specialised very well in this area, but there are also Russian companies which dispatch their own trucks. And these are no longer the old vehicles which you would see a decade ago. Nowadays, they use good material, but they are still cheaper. This makes quite a difference.”

Fresh Corridor

Holland Fresh Group Holland Fresh Group (HFG) is the international promotional name for Hoofd Bedrijfschap Agrarische Groothandel (HBAG) Groenten en Fruit; some 1400 companies which combined generate an annual turnover of thirteen billion euros are registered with the organisation. Holland Fresh Group organises presentations for the Dutch fresh vegetables and fruit sector at foreign fairs. Companies can request exhibition space in the Dutch pavilion through HBAG Groenten en Fruit. The leading fairs attended by HFG are Fruit Logistica in Berlin, Asia Fruit Logistica in Hong Kong, PMA Fresh Summit in New Orleans (USA) and Fruit Attraction in Madrid (Spain).

In the Spotlight Food Logistics I January 2013

Professionalism is not an issue in the Dutch food logistics sector, but the infrastructure still offers some room for improvement though. Especially in and around the port of Rotterdam, the road network is limited. “The A15 motorway is often congested. Work is underway to widen that road, but it takes trucks a very long time to for example transport cargo from the Maasvlakte to Barendrecht/Ridderkerk. The Westland is still waiting for a good connection with the Rotterdam port. The realisation of the Blankenburg Tunnel is essential. When the Botlek Tunnel is closed, for example because of an accident, you are stuck. And how long have we not been waiting for that very small stretch of A4 between Delft and Schiedam?,” argues Van Burik. The sector therefore started looking for other solutions, one of which is the Fresh Corridor project. This comprises inland barge connections for vegetables and fruit in and around Rotterdam’s port area. The cargo is now moved between Ridderkerk and Rotterdam by barge and a similar connection is also in place between the Hook of Holland and the Uniport terminal in Rotterdam’s Waalhaven. Next year, an inland barge service will be launched between the new Maasvlakte 2 and the Hook of Holland. Holland Fresh Group supports Fresh Corridor. Van Burik: “Six companies have committed to moving cargo between Rotterdam and Ridderkerk by barge. These

kinds of initiatives are highly necessary. Transport by barge to Geldermalsen and Venlo is also being considered.”

Transport at the bottom of the list Like all other sectors, fruit and vegetable companies and logistics service providers are also impacted by the economic crisis. Van Burik has noticed an increase in the number of bankruptcies. A decade ago, mainly small companies went bankrupt, but now medium and large companies are affected as well. “I see companies go under which have already been around for twenty or thirty years. This sector is about working hard for relatively low returns. The power of the supermarket chains is also a factor here; the cheapest company is allowed to supply. There are too many products in the world, especially in the Netherlands. You can still sell them, but at constantly lower prices and transport is

always more or less at the bottom of the list.” But he also sees opportunities for the Dutch food logistics sector. “More and more containers are moved to the Netherlands from overseas with cargo which requires additional treatment. Products receive this treatment here and are distributed to various end users. Companies like Cool Control, LBP and ADB Cool Company benefit from this and have substantially expanded their storage capacity,” says Van Burik. In addition, new markets continue to emerge. Previously, these were especially in Eastern Europe but Asia has now also entered the picture. Van Burik hopes that the Dutch fruit and vegetables sector will be able to strengthen its position in the Chinese market. “Until now, this has proven quite difficult; we would love to sell tomatoes and capsicum there. China’s middle classes are growing increasingly wealthier,” says the coordinator of Holland Fresh Group.

Holland Fresh Group Bezuidenhoutseweg 82 2594 AX Den Haag Postbus 90410 2509 LK Den Haag The Netherlands T +31 70 3850100 F +31 70 3475253 E info@hbaggroenten.nl W www.hbaggroenten.nl

In the Spotlight Food Logistics I January 2013

S p o t li g h t o n adb cool company

ADB Cool Company, cold store with custom made logistics and IT Thanks to an advanced complex of climate-controlled rooms and an ultramodern warehouse management system, delicate fresh vegetables, fruits and exotic products are in highly specialised hands with logistics service provider ADB Cool Company; from port to store shelf.

Every day, up to 125 trucks from the leading ports in Western Europe pull into ADB Cool Company’s large parking lot in ‘s Gravezande. And immediately after cross-docking or following temporary storage, thousands of pallets also depart again for customers throughout the whole of Europe. ADB Cool Company among other things specialises in fresh vegetables, fruits and exotic products and arranges the entire logistics process for its customers. From collection in the port, inspection and transport, cold storage and customs formalities to transport to the customer, who can always track every movement of the cargo online. “Our highly advanced warehouse management system keeps continuous track of

the cargo’s location and destination,” says Alex de Bruijn, director of the experienced family company, proudly. “We attach great value to transparency and this IT system offers customers just that. Each pallet is managed. The system has all the required information of the cargo, such as its origin, the harvesting time and the grower. And the great thing is that customers, who have insight into the products from anywhere in the world, can reserve cargo up to the box level. For example because it is from a top grower. Even calling-off individual pallets online is possible; customers issue the system a direct order and the forklift driver immediately receives a picking order with specific customer instructions. Oneto-one communication, everything happens super-fast.”

Precision Cooling

In order to be able to handle the delicate cargo as optimally and carefully as possible, ADB Cool Company has a warehouse which boasts various unique solutions. “The fewer the actions required, the lower the risk of damage,” says commercial manager Etienne Vennink. “That is why we use high, mobile racks. Our 44 different precision climate-controlled rooms range in size from 150m2 to 1000m2, which make it possible to store in total 15000 pallets. These mobile racks allow us to move pallets as gently as possible and store them with the highest possible density in terms of cubic metres. Furthermore, this enables us to achieve substantial energy savings.” The temperature in the 44 climatecontrolled rooms ranges from -25 °C to +60 °C. A unique ventilation circuit in each separate room makes it possible to store each individual cargo at exactly the right temperature and humidity level - for ripening kiwis, avocados and mangoes or drying ginger at higher temperatures. ADB Cool Company is certified by AEO, HACCP, BRC and Skal and also has the ISO 9001:2000 certification. In addition, the company is a member of NEKOVRI, the Association of Dutch Cold-Storage and Freezing Warehouses, has the STEK recognition for refrigeration companies and is acknowledged as a customs warehouse. “Besides customs clearance and repacking, sorting, ripening if applicable and packing the cargo, we also carry out quality and phytosanitary inspections here,” concludes Vennink. “And thanks to all this precise care, storage and IT monitoring, the quality of the delicate products is optimally safeguarded by ADB Cool Company.”

In the Spotlight Food Logistics I January 2013

ADB Cool Company BV Postbus 66 2670 AB Naaldwijk Galgeweg 8 2691 MG ‘s Gravenzande The Netherlands T +31 174 637 888 F +31 174 621 429 E logistics@coolcompany.nl W www.coolcompany.nl

In the Spotlight Food Logistics I January 2013

S p o t liS gp ho t lio gnhkloosterboer t o n Xxxxxxxx

Expansion Kloosterboer continues with two new warehouses in Rotterdam Kloosterboer is one of Western Europe’s leading logistics service providers with over 85 years of experience in the handling, transportation and storage of temperaturecontrolled products and food stuffs. The family-owned company has evolved to such an extent that it is now a total solutions provider, offering its clients end-to-end, fully integrated supply chain solutions. Kloosterboer is operational in seven different locations in the Netherlands as well as in France, the US and Canada. The company is one of the leaders in this industry in Western Europe with a total cold storage capacity of over three million cubic metres and a workforce of more than 600 dedicated and highly professional employees. The Group has a range of specialty services which it can offer its clients; warehousing, stevedoring, freight forwarding, shipping, processing, customs and state-of-the-art IT services. In addition to this, the company often takes on an advisory role for its customers, working with them to develop sustainable, innovative and efficient solutions which meet their exact needs and specifications. Kloosterboer’s dedication to offering its clients a bespoke, tailor-made service and its extensive experience set it apart from its competitors.

28 new dock shelters offer ample capacity for cross-docking. A veterinary inspection point and cool cells will enable the handling and storage of fresh fruit. The layout of the new premises with 8 cool and freeze cells makes it more suitable for the transit market and for clients with smaller-sized batches.

Container handling

In the future, Kloosterboer plans a further extension of reefer capacity and will invest in service quality on several levels. The Group is expanding its container handling activities in Vlissingen where it has already created an empty container depot function in order to decrease the costs of moving containers from Antwerp and Rotterdam to Vlissingen.

Cool Port

Kloosterboer’s latest project relates to the company’s intention to join forces in setting up Rotterdam Cool Port, which focuses on the transhipment and storage of temperature-controlled cargo. At the existing ECT City Terminal, a cold and frozen storage facility and a cross-docking facility for rapid and efficient transit operations will be built and integrated into the existing transhipment process. Quality checks and inspections will be performed directly at the terminal and services such as pre-trip inspections and the return of empty containers will be offered. Kloosterboer continues to develop in innovative and sustainable total supply chain solutions.

Maasvlakte Rotterdam

The most recent development of Kloosterboer is the expansion of its cold storage facility at Maasvlakte Rotterdam. This expansion, which will be built according to BREEAM standards, will enlarge the existing facility with approximately 5,000 temperature-controlled square metres. Once completed, the total capacity of 72,000 pallet spaces enables Kloosterboer to deal with more and varied consignments within the port of Rotterdam. In view of the current growth of the container market and the expansion of Maasvlakte 2, the

In the Spotlight Food Logistics I January 2013

Kloosterboer Group E office.staff.sales@kloosterboer.nl W www.kloosterboer.nl

In the Spotlight Food Logistics I January 2013

I n t h e S p o t li g h t next edition

The air cargo industry is flying into the cold

Dutch Food Logistics 2014 ‘In the Spotlight’ are a series of special magazines focussing on a particular branch or niche-market.

Pharmaceuticals, healthcare and other types of sensitive cargo may offer the struggling air cargo industry just the life jacket it needs. Airports, carriers and freight forwarders alike are intensifying their efforts to add even more quality to the value chain. A study carried out by German ESB Business School and Camelot Management Consultants has revealed that logistics is part of the top 3 of activities the pharmaceutical is likely to outsource in the years to come. The total potential of this segment is calculated at 2 billion Euro for the European market alone. UPS has set up five brand new pharma hubs over the last few years and has only recently initiated a dedicated air cargo service for Merck. Lufthansa Cargo has invested in pharma hubs both in Frankfurt (Germany)

and Hyderabad (India) and is planning to use its remaining MD-11 freighters for dedicated pharma shipments.

Swiss forwarders

Pharma and healthcare are paramount to the economy of Switzerland, so it is no coincidence that the main Swiss logistics companies are investing in another upgrade of their temperature-controlled services. Panalpina, for one, claims that over the first half of 2012 20% of its air cargo moved on its self-controlled Luxembourg-Huntsville route was temperature-controlled. On this route Panalpina deploys two brand new wet-leased B747-8-freighters in its own livery. The planes - dubbed ‘Cool Planes’ - can maintain different temperature ranges at the same time. For example, one for 2 to 8 degrees Celsius (cold chain) and one for 15 to 25 degrees Celsius (controlled room temperature). The deployment of the aircraft is another step forward in the group’s PanCool initiative. For the never-ending

monitoring of the shipments, Panalpina has developed its SmartView technology, ia RFID (radio-frequency identification) based temperature control system. The technology is based on the use of sensors, attached to the shipments and recording the environment temperature every 15 minutes. For safety reasons though, this technology cannot be used during flight, but the data is automatically transmitted as the cargo is unloaded. Kuehne+Nagel’s PharmaChain product offers four service levels, depending on the grade of specific temperature control requirements and special handling demands of each shipment. Within the framework of this package, temperature visibility will be provided by the use of active wireless sensors which record and transmit the shipment temperature throughout the entire transport chain. K+N’s logistics facilities are equipped with active wireless transmitting technology and customers can view temperature indications directly inside the KN Login online tracking & tracing tool.

GPRS

The SENTRY 400 Flightsafe, developed by OnAsset Intelligence, provides shippers and freight forwarders with a device that can also be used while the shipments are flying. The technology provides GPS location, light, temperature, humidity and vibration data, transmitted on the ground using worldwide GSM and GPRS wireless network. More and more airlines are admitting the use of these transmitters aboard of their aircraft. GPRS is the technology which is currently going through a pilot set up at Brussels Airport. Coordinated by the Flemish Institute for Logistics (VIL) its aim is to test real-time monitoring of temperature-sensitive shipments as they are being processed in the airport cargo handling processes. On the basis of the results of the test programme, the VIL hopes to speed up the use of GPRS by the stakeholders in the air cargo chain. The underlying idea is to put Brussels Airport on the map as an innovative hub for cold chain and high value logistics.

In the Spotlight Food Logistics I January 2013

In edition 2014, Dutch logistics companies promote their business on four of the world’s leading trade fairs for the international fresh produce trade: Berlin, Germany Fruit Logistica Hong Kong, China Fruit Logistica Asia Madrid, Spain

Fruit Attraction

Anaheim, USA

Fresh Summit

The magazine offers general information on the Dutch logistics business and contains advertorials in which Dutch logistics companies promote their business. All advertorials are written in interview-style, and are conducted by a professional copywriter. A pdf for final approval of the lay-out will be sent prior to publication.

Why participate? • Exposure for your company in a professional context. • 100 copies delivered to your office for your own distribution. • Distribution to 10,000 companies active in transport and logistics through Nieuwsblad Transport and De Lloyd. • Presentation of the magazine during Fruit Logistica in Berlin, Germany, Fruit Logistica in Hong Kong, Asia, Fruit Attraction in Madrid, Spain, and the Fresh Summit in Anaheim, USA.

For further information please call +31(0)10 280 10 25 or mail: verkoop@ntpublishers.nl

In The Spotlight Dutch Food Logistics is a joint production of NT Publishers and Holland Fresh Group.

S p o t li g h t o n am-solution

AM-Solution’s smart reefer technology Technologically perfect reefer containers or trailers are key to the adequate transport of fresh food products. AM-Solution from Hoogvliet develops innovative products for reefers and carries out high-grade electronics repairs.

The main customers of AM-Solution from Hoogvliet are shipping lines and repair companies. Established in 2011, the young company’s activities include the repair of electronics and supplying spare parts to the reefer container and trailer sector. Founder and director Boudewijn Ligterink and his colleagues also offer related training and advice to shipping lines and other customers. Ligterink: “We for example advise companies on how they can most efficiently arrange their spare parts logistics so that this no longer requires their attention. If

something breaks en route, they will need spare parts. We can provide them with a stock/repair programme for this.”

Host Adapter

In addition to advice and the repair of electronic components, AM-Solution develops innovative products for reefers. One example is the USB Host adapter which can be connected to the microcomputer of reefers, allowing users to quickly load software. The USB Host also enables transporters to download transport-related data within

sixty seconds. “Should a claim arise, then a shipping line can use this adapter to quickly display the details of the trip. It is a very fast method to download information.” Furthermore, the young company has developed a system to analyse the presence of R40 – a refrigerant gas commonly used in container cooling systems. R40 can be lethal if it chemically reacts with aluminium and several fatal accidents have occurred over the last couple of years in the form of explosions during the repair and inspection of containers.

Cargo sensor

AM-Solution has also launched an innovative, customised cargo sensor (the USDA). The US government requires that import cargo be equipped with sensors which must verify that the difference between the required and actual cargo temperature does not exceed 0.25 degrees Celsius. If this is the case, the container is placed in quarantine. Needless to say this is a highly time-consuming and costly matter for transporters. Most of the sensors that are located amidst the cargo are fitted with black cables, which makes them difficult to see. Consequently, these cables are regularly broken by accident when pallets are unloaded from the container, rendering the device useless. AM-Solution has developed clearly visible, orange sensors which also feature the name of the shipping line. The director of AM-Solution: “This shows how minor adjustments can improve a product. As a result, the lifespan of the sensors has been substantially expanded.”

In the Spotlight Food Logistics I January 2013

AM-Solution B.V. Hoogvlietsekerkweg 126a 3194 AM Hoogvliet-Rotterdam The Netherlands T +31 10 7371019 F +31 85 8769310 E sales@am‐solution.com W www.am‐solution.com

In the Spotlight Food Logistics I January 2013

S p o t li g h t o n abc logistics

ABC Logistics hits the water

In addition to the storage and distribution by truck of fruits and vegetables, ABC Logistics will also start making use of inland shipping in Rotterdam’s port area.

The logistics service provider is participating in the project ‘Fresh Corridor 2’, in which containers are moved from the Second Maasvlakte to the Hook of Holland by barge. Environmental concerns and congestion are the main reasons for ABC Logistics to participate in the project. ABC Logistics specialises in the storage and distribution of fruit and vegetables. The company is located in Poeldijk and Venlo and has a (conditioned) storage capacity of 22,000 square metres. “If any-

thing, the fact that we have branches in the two largest distribution areas for fruit and vegetables in the Netherlands works to our advantage. From Venlo, we carry out a lot of local-level distribution in Germany. England and Germany are our principal markets,” says director Boy Stuijfzand of ABC Logistics. The logistics service provider mainly handles sea containers from Africa, Asia and South America coming into the port of Rotterdam. Air freight constitutes a smaller segment. ABC Logistics carries out

the local distribution using an own fleet of ten trucks. From Rotterdam, reefers are sometimes also moved to Venlo by inland shipping.

Inland barge terminal

This year, ABC Logistics will start to make use of inland shipping in the port of Rotterdam. Starting in the spring, the aim is to deploy an inland barge between the Second Maasvlakte and the Hook of Holland, where a transhipment terminal is being constructed. From there, it is just

a couple of kilometres to the Westland. The project is a continuation of the pilot Fresh Corridor 1, in which a barge sails between the Uniport terminal and the Hook of Holland. Stuijfzand: “Currently, the drive from Uniport to Poeldijk is quite substantial. It is common knowledge that it is not really that efficient to unload and load cargo in the Rotterdam port and next move this to your company by road. The environment and congestion constitute the main reasons for our participation in this project.”

The director of ABC emphasis that the company does not have the intention of moving large volumes of containers by barge and that ABC is only one of the participants in the project.

Comprehensive range

According to Stuijfzand, the strength of his company lies in its ability to offer customers a comprehensive range of services. Furthermore, he has noticed that warehouse capacity is increasingly gaining in importance. “In the past, smaller

companies and exporters would have a warehouse of their own, but this is less and less the case now. We are anticipating this trend.” Another trend which he has observed is the desire of overseas customers to make the chain increasingly shorter. They make less use of importers and directly do business with logistics service providers; this development too works to the advantage of ABC Logistics. “We handle the distribution and aim to make the chain as lean and mean as possible,” says Stuijfzand.

ABC Logistics ABC Westland 210 2685 DC Poeldijk The Netherlands T +31 174 530700 F +31 174 530777 E info@abclogistics.nl W www.abclogistics.nl

In the Spotlight Food Logistics I January 2013

S p o t li g h t o n smith-holland

Smith-Holland offers solution to R40 issue

‘TMA comparable to time bomb’ In 2011, the transport sector was rocked by a number of incidents involving exploding reefer units, some with fatal consequences.

The cause was thought to be a prohibited, toxic refrigerant used in the Far East during maintenance and repairs. In combination with aluminium parts, this cheaper refrigerant which among other things contains R40 can lead to the formation of TMA (Tri-Methyl Aluminium) which is highly dangerous. In Spijkenisse, SmithHolland has developed a method to neutralise and clean systems containing TMA. It is with good reason that UNEP, the environmental institution of the United Nations, concluded a few months ago that the transport industry needs to be seriously concerned about the presence of counterfeit refrigerants in the systems of reefer containers. No less than one quarter of the 1.3 million reefer containers in the world may be contaminated with CFCs. Based on measurements and gathered data, Johan van der Kruk, director of the Smith-Group, concludes that of the 1.3 million containers, five to eight percent is actually contaminated with R40; a small number of these could contain the dangerous substance TMA.

R40 changes into TMA

“TMA reacts very violently with other substances such as water or air. As a result, the pressure in a compressor can mount very quickly, resulting in an explosion. TMA is like a time bomb,” says Johan van der Kruk of reefer service company Smith-Holland BV which has branches throughout the

In the Spotlight Food Logistics I January 2013

whole of Europe. The formation of TMA by the way only occurs if a wrong (illegal) cooling agent is used which among other things includes R40 in combination with aluminium parts. Only original refrigerants may be used in cooling installations. In the Far East, cheaper mixes containing R40 were presumably used last year. Van der Kruk: “Various mixes are in circulation: one or more containing CFCs, which are not dangerous but can cause damage to the refrigeration system. In itself, mixtures with R40 are not dangerous, but they are toxic and flammable. In combination with aluminium parts, R40 can lead to the formation of TMA. That is the major culprit here and already responsible for shattering dozens of compressors in reefers.”

do indicate the presence of R40, then care should be taken,” emphasises Johan van der Kruk. Depending on the amount of R40 and the number of reactants in the lab report, the system will have to be neutralised before the cleaning process can commence. When TMA is present in the installation, Smith-Holland can neutralise, clean and repair the system at a specially secured location at the workshop. For this purpose, the company has developed a procedure together with third parties, including Inspectorate (Veritas) and Cambridge Reefer Technology.

Test, Neutralise and Clean

Various methods are available to test whether the present refrigerant has been contaminated with CFCs and whether dangerous R40 might be present. SmithHolland currently uses the ‘sniffer’ or ‘testtube’ which is capable of indicating various levels of contamination. “We test the system using these glass tubes. Depending on the outcome, a sample is sent to the laboratory of Inspectorate to determine which gases are present in the system. If R40 is not found, the container can be cleaned in the same manner as if R12 and R22 were present. If the results however

Smith-Holland B.V. Postbus 600 3200 AN Spijkenisse Röntgenweg 8 (Industrieterrein Halfweg 2) 3208 KG Spijkenisse T +31 181 678400 F +31 181 678421 E info@smith-europe.eu W www.smith-europe.eu

In the Spotlight Food Logistics I January 2013

Balancing quality and cost Refrigerated transport and logistics face major challenges according to two important players in the sector.

In Didier Michel’s, CEO of the haulage firm Groupe TFM and Vice-President of Transfrigoroute International (TI), view the temperature controlled transport business is under pressure. “Of course the general market situation means that margins are lean. But worse are the carriers who are prepared to buy their way into the business by charging unrealistic prices. They don’t know the real costs of this sort of transport and in doing so spoil the market for everybody”. Michel considers the distribution of goods in temperature controlled conditions to be one of the great challenges of the future. Not surprisingly then this is theme of TI’s annual meeting, which this year is being held in Lyon (France) at the end of October. “The distribution of goods to and within urban areas is in itself a problem because local authorities are adopting ever more measures aimed at prohibiting or discouraging motorized traffic, such as road humps, pedestrian zones, restrictions on goods vehicles over a certain tonnage and so on. For temperature controlled transport this is yet another problem. Delivering goods at the right temperature in controlled temperature conditions thus becomes a huge challenge”. Luc Put, CEO of Colfridis, a refrigerated logistics operator in Londerzeel, and VicePresident of the European Cold Storage and Logistics Association (ECSLA), agrees, “If you have to make ten or twenty stops it’s much more difficult to keep the temperature at the right level than when you have to carry a refrigerated load a long way to a single delivery point. Tracking and tracing is thus extremely important and here too considerable progress has been made. Even

In the Spotlight Food Logistics I January 2013

so I think we can still expect the technology to develop much further”. Everything in the cold chain depends on temperature and keeping it under control, and the temperature itself seems to be a cause for endless discussion. “The controls are strict and justified, but at the same time the energy costs of storing and carrying goods at -18°C are immense. What for example would be the effect, if goods could be stored at -17°C or – 16°C? Would this result in damage to the goods or could it be harmful to the consumer later

`The distribution of temperature controlled goods are one of the great challenges of the future´ on? What would be the impact of raising the storage temperature by a few degrees on energy bills?” wonders Luc Put. “Cooling vehicles to –18°C not only puts a huge dent in energy bills, but is also very time consuming. Would for example it not be possible for some products to be loaded at – 7°C? The required temperature could then be reached during the journey itself ”. Didier Michel takes the same line, “Cooling takes lots of energy and consequently costs pots of money. Now that diesel has gone so expensive the situation is not likely to improve. The government could and should take action by cutting the taxes on diesel fuel used for this purpose”.

Consumers

The biggest influence on refrigeration logistics and refrigerated transport in the next few years will be the changing shopping habits of consumers. Of course this also applies to non-refrigerated products, but because of the greater number of critical aspects, it will be the distributor and carrier of refrigerated and chilled goods who will have to deal with the extra headaches, thinks Didier Michel. “The very strict time windows that the refrigerated goods carrier has to cope with are already critical. One and a half hours is regarded as generous, and all too often the window is only half an hour. That doesn’t give you much leeway. Which is why on-board computers are so important, combined with carefully thought-out and feasible route planning”. The trend to ever fresher products furthermore makes supplying shops even more difficult. “It means that the goods have to be delivered to the shop in the morning. Not too early, but above all not too late. In other words during the rush hour. It’s the job from hell!” smiles Luc Put. The inexorable growth of e-commerce too is presenting the industry with challenges. “People buy less at once. Supermarket trolleys are no longer as full as they were in the past. As a result the deliveries made to shops are smaller, but more frequent, because in the meantime more and more is being ordered via the internet. This is a development that means that deliveries of goods, temperature-sensitive goods included, to shops will increase in frequency and flexibility. This is no easy job, especially as the quality control of deliveries will not be relaxed, to the contrary!”.

In the Spotlight Food Logistics