6 th harris county international trade & transportation conference

6TH ANNUAL HARRIS COUNTY INTERNATIONAL TRADE & TRANSPORTATION CONFERENCE, OCTOBER 23, 20141

6TH HARRIS COUNTY INTERNATIONAL TRADE & TRANSPORTATION CONFERENCE

“Market Analysis for Cold Chain Logistics” Exploring Smart Trade Routes for optimum performance

Session 3: “Refrigerated and Produce Initiative”

Prof. Maria G. BurnsDirector, Center for Logistics & Transportation Policy (CLTP)

College of Technology - UH

Contents

4. Modal choice, time barriers and Cargo Perishability

1. Cold chain logistics: An Overview

2. Shipment integrity and quality assurance

Contents

2ECLT 5710 Distributed and Mobile Systems

5. Exploring Shorter and Smarter Trade Routes

6. Recommendations and Conclusions

“Market Analysis for Cold Chain Logistics”

3. Cold chain logistics: a statistical analysis

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; Packaging; Transportation; Cargo Loading/Discharging; Storage, Customs Clearance; Warehousing; Distribution.




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”





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


3. Cold chain logistics: a statistical analysis.

6


Global Reefer Industry• Global volume growth: 4.5% a year• Commodity Perishable growth: 3.3% for the past decade• Reefer fleet: 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

THINK GLOBALLY, ACT LOCALLY



HOUSTON : MARKETPLACE LEADERSHIP

TEXAS is No. 1 State Offering Best Incentives for Business and Industry

2013 Survey to Site Consultants Site Selection Magazine

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 BusinessArea Development Facility and Site Planning 2013HOUSTON is No. 1 Manufacturing CityManufacturers’ News Inc. 2013HOUSTON is No. 1 Metropolitan Area and No. 1 in Total ProjectsSite Selection Magazine – March 2013HOUSTON is No. 1 Largest Export Market in U.S.U.S. Department of Commerce, International Trade Administration 2013HARRIS COUNTY is No. 1 Largest in Population Gain U.S. Census Bureau 2013


4. Modal choice, time barriers and Cargo Perishability

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Source: Drewry Consultants 2008-2014

US Ports & Reefer SlotsThe Global Maritime Industry: Refrigerated Cargoes vs. Refrigerated Ships

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FACTS AND FIGURES

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4 Key Global Customers: 1. Central America • Guatemala, • Costa Rica• Honduras • Colombia2. W.C. South America:• Chile• Peru• Ecuador3. South Africa:

4. S.E. ASIA:

Fruit, Flowers

Fruit: Avocados, Apples

Citrus Fruits

Fish & Seafood(Tilapia, Shrimp, Oysters)

COLD CHAIN US IMPORT PORTS: - PHILADELPHIA- CALIFORNIA- FLORIDA- NY/NJ- N. CAROLINA- DELAWARE- GEORGIA

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1. Central America • Guatem

ala, • Costa

Rica• Hondura

s • Colombi

a

2.W.C. South America:• Chile• Peru• Ecuador

3. South Africa

3. S.E. ASIA

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1. Central America • Guatem

ala, • Costa

Rica• Hondura

s • Colombi

a

From Puerto Barrios, Guatemala

Distance

To: Philadelphia (Pennsylvania)

1728 nautical miles

Vessel speed 14 knots

time 5 days and 3 hours

From Puerto Barrios, Guatemala

Distance

To: HOUSTON, TX

1067 nautical miles



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2.W.C. South America:• Chile• Peru• Ecuador

From Laredo, Chile

Distance

To: HOUSTON, TX

7496 nautical miles / 5504


time 22D/7Hrs/ OR 16D/9Hrs

From Laredo, Chile

Distance


6962 nautical miles / 5922


time 22D/17Hrs/ OR 17D/15Hrs

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3. S.E. ASIA

From: Cape town, SAFR

Distance

To: Houston, TX (*via Suez)

10,500 nautical miles


time 31 days

From: Jakarta, Indonesia

Distance


12,000 nautical miles



Cold chain logistics: a statistical analysis.

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COLD CHAIN NETWORKS: - PHILADELPHIA- CALIFORNIA- FLORIDA- NY/NJ- N. CAROLINA- DELAWARE- GEORGIA

Domestic Migration, 2013 - 2014

M. BURNS, TRB June 201417

ECONOMIC GROWTH & DEVELOPMENT


POLITICAL, MILITARY, ECONOMIC CENTERS

PRODUCTION industrial zone,

refineries. DISTRIBUTION CENTERS,

Mass Storage Areas TRANSPORTATION

CENTERS


http://morethanshipping.com/wp-content/uploads/2011/08/marine-highway.bmp

THE MANY FACES OF THE

TRIPLE-E Concept

MGB 2014 18

EXPLORING SHORTER & SMARTER ROUTES: • TIME VS. MONEY= ECONOMIES• FASTER DELIVERY = BETTER QUALITY• ENVIRONMENT• ENERGY• Increased ACCESSIBILITY• Eliminate Bottlenecks • SAFETY (Minimize Accidents)

1) DRIVERS

Direct:Cold Chain Products:- Increased Demand- Import Regulations

Indirect:-Existing Networks-Technology

3) STATE

- PERISHABLE CARGOES- Time-sensitive - Quality-sensitive- Temperature-sensitive

2) PRESSURES

4) IMPACTS

5) RESPONSE

- Demographic & economic changes affect national distribution networks.

- Demographic Impact- Economic Impact- Lifecycle changes- Food cycle changes

- Environmental Impact- Health Impact

National Network & Infrastructure Adaptation BY WHOM: Federal/State authorities (DHS CBP and DOT, DOC); Importers, Transportation & Distribution channelsHOW: Transport planning , Laws, Regulations & Policies

Change Trade

Patterns

Transport Planning

New Transport Networks

Economic & Commercial Impact For Cold Chain ProductsSchematic DPSIR Framework (From an Industry/Consumers’ perspective)


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Prof. Maria G. BurnsDirector, Center for Logistics & Transportation Policy

“The next level of Seaport Efficiency”

Thank You.QUESTIONS, COMMENTS OR REMARKS?

6 th harris county international trade & transportation conference

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