6TH HARRIS COUNTY INTERNATIONAL TRADE & TRANSPORTATION CONFERENCE
Session 3: “Refrigerated and Produce Initiative”
“Market Analysis for Cold Chain Logistics”
Exploring Smart Trade Routes for optimum performance
Prof. Maria G. Burns
Director, Center for Logistics & Transportation Policy (CLTP)
College of Technology - UH
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6TH ANNUAL HARRIS COUNTY INTERNATIONAL TRADE & TRANSPORTATION CONFERENCE, OCTOBER 23, 2014
“Market Analysis for Cold Chain Logistics”
Contents
1. Cold chain logistics: An Overview
2. Shipment integrity and quality assurance
Contents
3. Cold chain logistics: a statistical analysis
4. Modal choice, time barriers and Cargo Perishability
5. Exploring Shorter and Smarter Trade Routes
6. Recommendations and Conclusions
ECLT 5710 Distributed and Mobile Systems
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“Market Analysis for Cold Chain Logistics”
1. Cold chain logistics: An Overview
Cold chain commodities: temperature-controlled goods.
They Include :
• Food products: meat; fish; bananas; deciduous fruit; citrus fruit; tropical
fruit; and dairy.
• Frozen foods, processed foods/meat/fish
• Chemicals, pharmaceutical drugs;
• HAZMAT Cargoes & other temperature-sensitive commodities.
They require:
•
Standard Operating Procedures / Quality Management
•
Temperature-controlled environment throughout the supply chain
Production;
Storage,
Packaging;
Transportation;
Cargo Loading/Discharging;
Customs Clearance;
Warehousing;
Distribution.
ECLT 5710 Distributed and Mobile Systems
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“Market Analysis for Cold Chain Logistics”
2. Shipment integrity and quality assurance
Cold chain commodities:
Challenges:
• Temperature-sensitive = Temperature Monitoring & Controlling
• Time-sensitive
= Efficient Trade Routes, minimum disruptions
• Quality-sensitive
= Perishable Goods
Attributes & Market Trends:
• Tailor-made handling;
• Visibility & Flexibility
• Seasonal trade: reliability needed
• Time-delivery restrictions
• Efficient transportation planning needed to protect the cargo quality
“from production to the last mile”
Production;
Storage,
Packaging;
Transportation;
Cargo Loading/Discharging;
Customs Clearance;
Warehousing;
Distribution.
ECLT 5710 Distributed and Mobile Systems
4
“Market Analysis for Cold Chain Logistics”
2. Shipment integrity and quality assurance
Solutions: Technologies used:
1. RFID: Radio frequency identification devices:
Tracking cargoes, measuring times;
2. TTI: Time Temperature Indicators: display a summary of the
aggregate time & ‐temperature history of the product;
3. GPS: Global Positioning Systems
4. AIS: Automatic Identification Systems
Production;
Storage,
Packaging;
Transportation;
Cargo Loading/Discharging;
Customs Clearance;
Warehousing;
Distribution.
ECLT 5710 Distributed and Mobile Systems
5
“Market Analysis for Cold Chain Logistics”
3. Cold chain logistics: a statistical analysis.
Global Reefer Industry
• Global volume growth:
• Commodity Perishable growth:
• Reefer fleet:
4.5% a year
3.3% for the past decade
over 2 million TEUs (+6% a year)
• Industry requires a better return of investment (ROI);
• Cold Chain Logistics Management: New Trends for Global Logistics companies
-
Economy Efficiency
Energy Efficiency
Time Efficiency
Environmental Protection
-
Economies of Scale
Smart Modal Choice
Smart Trade Route Selection
Efficient Transport
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“Market Analysis for Cold Chain Logistics”
THINK GLOBALLY, ACT LOCALLY
6TH ANNUAL HARRIS COUNTY INTERNATIONAL TRADE & TRANSPORTATION CONFERENCE, OCTOBER 23, 20147
“Market Analysis for Cold Chain Logistics”
HOUSTON : MARKETPLACE LEADERSHIP
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Houston is the Energy Capital of the World
Becoming the Shipping Center for the Americas
Energy & Industrial conglomerates moving to Texas
Foreign Trade Zones & Freeport exemptions
More than 474 M SQ FT of industrial space
Large variety of State and Local incentives
U. S. R A N K I N G S
TEXAS is No. 1 State for Doing Business
Area Development Facility and Site Planning 2013
HOUSTON is No. 1 Manufacturing City
Manufacturers’ News Inc. 2013
HOUSTON is No. 1 Metropolitan Area and No. 1 in
Total Projects
Site Selection Magazine – March 2013
HOUSTON is No. 1 Largest Export Market in U.S.
U.S. Department of Commerce, International Trade
Administration 2013
HARRIS COUNTY is No. 1 Largest in Population Gain
U.S. Census Bureau 2013
TEXAS is No. 1 State Offering Best
Incentives for Business and Industry
2013 Survey to Site Consultants
Site Selection Magazine
“Market Analysis for Cold Chain Logistics”
4. Modal choice, time barriers and Cargo Perishability
The Global Maritime Industry:
Refrigerated Cargoes vs. Refrigerated Ships
US Ports & Reefer Slots
Source: Drewry Consultants 2008-2014
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“Market Analysis for Cold Chain Logistics”
5. Exploring Shorter and Smarter Trade Routes
FACTS AND FIGURES
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“Market Analysis for Cold Chain Logistics”
5. Exploring Shorter and Smarter Trade Routes
4 Key Global Customers:
1. Central America Fruit, Flowers
•
Guatemala,
•
Costa Rica
•
Honduras
•
Colombia
2. W.C. South America: Fruit: Avocados, Apples
•
Chile
•
Peru
•
Ecuador
Citrus Fruits
3. South Africa:
4. S.E. ASIA:
COLD CHAIN
US IMPORT PORTS:
-
PHILADELPHIA
CALIFORNIA
FLORIDA
NY/NJ
N. CAROLINA
DELAWARE
GEORGIA
Fish & Seafood
(Tilapia, Shrimp, Oysters)
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“Market Analysis for Cold Chain Logistics”
5. Exploring Shorter and Smarter Trade Routes
1.
Central America
•Guatemala,
•Costa Rica
•Honduras
•Colombia
3.
S.E. ASIA
2.
W.C. South America:
•Chile
•Peru
•Ecuador
3.
South Africa
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“Market Analysis for Cold Chain Logistics”
5. Exploring Shorter and Smarter Trade Routes
1.
Central America
•Guatemala,
•Costa Rica
•Honduras
•Colombia
From
Puerto Barrios, Guatemala
To:
Philadelphia (Pennsylvania)
Distance
1728 nautical miles
Vessel speed
14 knots
time
5 days and 3 hours
From
Puerto Barrios, Guatemala
To:
HOUSTON, TX
Distance
1067 nautical miles
Vessel speed
14 knots
time
3 days and 4 hours
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“Market Analysis for Cold Chain Logistics”
5. Exploring Shorter and Smarter Trade Routes
2.
W.C. South America:
•Chile
•Peru
•Ecuador
From
Laredo, Chile
To:
Philadelphia (Pennsylvania)
Distance
6962 nautical miles / 5922
Vessel speed
14 knots
time
22D/17Hrs/ OR 17D/15Hrs
From
Laredo, Chile
To:
HOUSTON, TX
Distance
7496 nautical miles / 5504
Vessel speed
14 knots
time
22D/7Hrs/ OR 16D/9Hrs
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“Market Analysis for Cold Chain Logistics”
5. Exploring Shorter and Smarter Trade Routes
From:
Cape town, SAFR
To:
Houston, TX
(*via Suez)
Distance
10,500 nautical miles
Vessel speed
14 knots
time
31 days
From:
Jakarta, Indonesia
To:
Philadelphia (Pennsylvania)
Distance
12,000 nautical miles
Vessel speed
14 knots
time
35 days and 10 hours
3.
S.E. ASIA
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“Market Analysis for Cold Chain Logistics”
Cold chain logistics: a statistical analysis.
COLD CHAIN NETWORKS:
-
PHILADELPHIA
CALIFORNIA
FLORIDA
NY/NJ
N. CAROLINA
DELAWARE
GEORGIA
Domestic Migration, 2013 - 2014
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“Market Analysis for Cold Chain Logistics”
ECONOMIC GROWTH & DEVELOPMENT
POLITICAL, MILITARY,
ECONOMIC CENTERS
PRODUCTION
industrial zone,
refineries.
DISTRIBUTION CENTERS,
Mass Storage Areas
TRANSPORTATION
CENTERS
4. Exploring Shorter and Smarter Trade Routes
M. BURNS, TRB June 2014
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THE MANY FACES OF
THE
TRIPLE-E
Concept
EXPLORING SHORTER & SMARTER ROUTES:
• TIME VS. MONEY= ECONOMIES
• FASTER DELIVERY = BETTER QUALITY
• ENVIRONMENT
• ENERGY
• Increased ACCESSIBILITY
• Eliminate Bottlenecks
• SAFETY (Minimize Accidents)
MGB 2014
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Economic & Commercial Impact For Cold Chain Products
Schematic DPSIR Framework (From an Industry/Consumers’ perspective)
2) PRESSURES
1) DRIVERS
Direct:
Cold Chain Products:
- Increased Demand
- Import Regulations
-
3) STATE
PERISHABLE CARGOES
Time-sensitive
Quality-sensitive
Temperature-sensitive
- Demographic & economic
changes affect national
distribution networks.
Indirect:
-Existing Networks
-Technology
4) IMPACTS
5) RESPONSE
National Network & Infrastructure Adaptation
BY WHOM: Federal/State authorities (DHS CBP and DOT,
DOC); Importers, Transportation & Distribution channels
HOW: Transport planning , Laws, Regulations & Policies
Change
Trade
Patterns
Transport
Planning
New
Transport
Networks
- Demographic Impact
- Economic Impact
- Lifecycle changes
- Food cycle changes
- Environmental Impact
- Health Impact
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6TH ANNUAL HARRIS COUNTY INTERNATIONAL TRADE & TRANSPORTATION
CONFERENCE, OCTOBER 23, 2014
“The next level of Seaport Efficiency”
Thank You.
QUESTIONS, COMMENTS OR REMARKS?
Prof. Maria G. Burns
Director, Center for Logistics & Transportation Policy
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6TH ANNUAL HARRIS COUNTY INTERNATIONAL TRADE & TRANSPORTATION CONFERENCE, OCTOBER 23, 2014