Food Logistics

AUG 2014

Food Logistics serves the entire food supply chain industry with targeted content for manufacturers, retailers, and distributors.

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42 AUGUST 2014 • FOOD LOGISTICS www.foodlogistics.com 53-foot intermodal containers. "We've already added 3,000 more contain- ers compared to what we had just 12 months ago," says Filter. These intermodal containers hold up to 50 double-stacked pinwheel pallets, which means shippers get 10 to 15 percent more palletized cargo space compared to a standard container. Food/bev shippers go intermodal A variety of shippers see the benefits of intermodal rail, including food and beverage shippers. Filter points out that major shippers in these sectors are increasingly integrating rail into their supply chain strategies for both ambient and temperature-controlled shipments. "This winter was challenging for everyone, but especially food shippers," he says. However, "We really saw a difference between the food shippers who had well thought-out plans and those who were caught off guard." In particular, "Those that did have good plans were able to avoid using reefers even during extreme weather." For example, a number of food/bev ship- pers use detailed weather forecasting for their intended routes, and prepare and adjust accord- ingly, he says. "Based on the weather forecast, they identify precautions they need to take for that route or find alternate routes or modes of transportation." In addition, railroads and shippers are opti- mizing how they load the containers — keeping product off the floor, away from container walls, and using insulated blankets on the product to guard from excessive heat or cold. As for the long-term outlook, both the truck- ing and rail sectors stand to benefit from grow- ing freight volumes. A recent report from the American Trucking Associations (ATA) states overall freight tonnage in the U.S. will grow 23.5 percent and freight revenue will surge 72 percent from 2013 to 2025. The trucking sector's share of freight tonnage is expected to expand from 69.1 percent to 71.4 percent over that time frame, compared to rail's market share, which is forecasted to drop slightly from 14.5 percent in 2013 to 13.8 percent in 2025. Nonetheless, that ATA notes that "truck- load carriers will make greater use of intermodal rail for intermediate- and long-distance hauls." ◆ CARGOQUILT WRAPS UP ADDITIONAL SAVINGS K evin Lynch, national account manager at Q Products & Services (QPS), a man- ufacturer of insulated blankets, confirms that capacity issues in the trucking sector, par- ticularly for OTR refrigerated, are tight. "Our custom- ers and prospects both are telling us when it comes to capacity for OTR refrigerated, it's just not there," he says. To make matters worse, most OTR refrigerated carriers do not have immediate plans to invest in new equipment to add capacity either, says Lynch. QPS manufactures passive temperature protection products, including the Multi-Trip CargoQuilt, the flagship product in their quilt fleet, which covers an entire or partial load of freight enclosed in a trailer or container, for either domestic or international shipments. The CargoQuilt protects against freezing, heat and condensation damage. While it is a relatively simple product, its ability to save money for shippers who covert their OTR refrigerated shipments to intermo- dal dry shipments is impressive. It also gives shippers added flexibility by letting them use temperature-controlled equipment only when they really need it. "It's a win-win for shippers, because not only is there capacity on intermodal, but it's more cost effective compared to OTR," says Lynch. Once shippers begin using the insu- lated blankets and understand how well they perform, they start looking elsewhere in their supply chain for opportunities to use insulated blankets, he adds. RYAN COMPANIES US, INC. Bob West at bob.west@ryancompanies.com or 904.237.3629 www.RYANCOMPANIES.com As a national leader in designing and building cold storage facilities, Ryan understands the end-to-end supply chain process and the key role that distribution plays in effcient and timely movement of product. Whether it's designing energy effcient thermal envelopes, refrigeration or lighting systems, our focus is on building solutions for your business.

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