Reefer !

High Value Cargo

Global Reefer Management 2012

Clemens Holz

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Hapag-Lloyd at a Glance

Pharmaceuticals
Hapag-Lloyd Reefer Container

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High Value Process

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Hapag-Lloyd at a Glance

Highlights

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Product

Fleet

Orderbook

Equipment

Offices

Employees

82

142

10

1 million

300

6,900

Services
around the
globe

Modern
container
vessels with a
capacity of
~618,000 TEU*

Vessels with
13,200 TEU.

Containers
(TEU) of
various types

Sales offices
in 114
countries

Motivated and
qualified
people all over
the world

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4 new vessels
and 6
upgraded

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One of the leading global container shipping companies

*excluding 5 vessels chartered out to a Grand Alliance partner

Status: March 2012

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Hapag-Lloyd at a Glance

Pharmaceuticals
Hapag-Lloyd Reefer Container

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High Value Process

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Ocean Transport - Pharmaceutical Goods

Main Background Facts

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Increasing ocean transport demand (shift from air to ocean)

Major origins : North Europe and North America

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Major destinations : North America, South America and Far

East

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Ocean carrier policy : accept, not accept, with special process

Increasing awareness in the industry about

Product / cargo sensitivity

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Transport risk management

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Liability and cargo value

Reliable temperature control transport

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Reefer technology

High Valuable Cargo Statement

Hapag-Lloyd a reliable transport partner

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Valuable and sensitive reefer cargo from the pharmaceutical,

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chemical or healthcare industry requires particularly careful

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handling by all partner in the supply chain.

Hapag-Lloyd can provide for you :

Knowledge and experience in cargo handling

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Modern and reliable reefer equipment (reduce risk)

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High Value processes (reduce risk)

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Hapag-Lloyd at a Glance

Pharmaceuticals
Hapag-Lloyd Reefer Container

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High Value Process

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Hapag-Lloyd Reefer

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Hapag-Lloyd Reefer How it works

Reefer Airflow
Proper Cargo Loading & Airflow

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Main Reefer container purpose

Preserve cargo quality

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Various factors can influence cargo quality

Most factors can not be influenced by
Hapag-Lloyd
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Hapag-Lloyd Reefer Container

What can impact cargo quality?

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Reliability of reefer container

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Reefer power-o 3mes

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Cargo packing & Cargo Stowage (Air Circula3on)

Cargo temperature (Cargo temp = Reefer set point)

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Ambient temperature (Tropics / Winter North America)

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Hapag-Lloyd Reefer Container

The Transport Chain

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Where are the main risk areas ?

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Interchanges !

Warehouse to Truck

Vessel to Terminal

Terminal to Vessel

Terminal to Rail / Truck

Terminal to Terminal (transshipment)

Truck to Warehouse

Hapag-Lloyd Reefer Container

Prevention Management & Cargo Protection

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Production Every reefer container is ISO/CSC certified (e.g. Germanischer Lloyd)

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Tests

Reefer units are tested under witness of a qualification society

Hapag-Lloyd test requirements are above industry standards

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PTI

Pre Trip Inspection before every Transport (PTI)

Repairs are monitored in the internal global HL system

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Spare Parts Reefer spare parts on vessels worth USD 18 Million

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Monitoring

Reefer during transit are monitored frequently (terminal and vessel)

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24 / 7

24/7 technical support service providing assistance in case

of reefer break down

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Hapag-Lloyd Reefer

Hapag-Lloyd Reefer

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Exceed industry Standard

Are well maintained

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and

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In the event a reefer fails we are prepared

The Transport Chain

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Hapag-Lloyd at a Glance

Pharmaceuticals
Hapag-Lloyd Reefer Container

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High Value Process

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High Value Reefer Procedure

High Value Procedure
Hapag-Lloyd established a special procedure for high value reefer cargo (>USD 500,000)

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...to reduce cargo claim risk for HL and customer

.......to identify and eliminate weak links in the supply chains

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to meet customer requirements

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Reefer High Value procedure is a company process since 2008

HL Global Reefer Management is coordinating business evaluations

Evaluation expert team : Container Engineering, Insurance and Cargo Specialists

former captains reviewing and approving every high value business

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Cargo Value above USD 1 million : Senior Management approval

Factors that influence the overall risk of reefer high value shipments:

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Set temperature, safe temperature range, cargo weight, volume, storage / packing
(air circulation), ambient air conditions, no. of transhipments, vessel operator, pre- /
on carriage, fresh air supply, communication.

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Status: April 2012

High Value Reefer Procedure

Why has Hapag-Lloyd a High Value Procedure?
Overall : Verify if customer cargo quality expectations can be met

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Eliminate low performing ports / terminals to minimize power-off times during load /

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discharge operation

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Select only reliable transport service providers with emergency action processes in place

Select only vessels / services fitted with reefer spare parts

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Ensure optimal routing (transit time & reliable ports/terminals no transhipment)

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Correlation product safe temperature range and ambient temperature

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Status: April 2011

High Value Reefer Procedure

Why has Hapag-Lloyd a High Value Procedure?
Overall : Verify if customer cargo quality expectations can be met

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Correlation product safe temperature range and ambient temperature

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Correlation cargo mass and cargo temperature

Determine Hapag-Lloyd liability maximum acceptable by HL : USD 500,000/container

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Verify Subcontractor e.g. feeders / inland service providers max. liability

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! Ensure we act with due diligence!

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Status: April 2012

High Value Matrix

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Status: Jan 2012

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High Value Matrix Reefer Coordination Risk Management

Contact / Customer Details

Office contact
Customer name
Cargo Owner & Producer

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Commodity / Equipment Details

Maximum Value p. Container
Commodity Description
Gross weight
Number of packages / cargo packing
Temp. set point / Safe temp. range

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Other Info

Routing
Transshipments ?

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Merchant haulage / Carriers haulage

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Vessel operator

Service details

Air freight / Ocean freight

Overall potential
Business period
Rate proposal / contribution level
Comments
Approved by

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High Value Reefer Procedure

Supply Chain Communication

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Vessel crews, terminals and subcontractors Receive a separate notification for reefer high value shipments

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High value is only accepted if a quick communication with vessel crews / partner vessels was approved

in order to guarantee utmost cargo care

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Thank You for Your Attention!

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Back Up
Terminal Handling
Global Reefer Management 2011

Reefer Handling - Terminal

Export Container

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Special Reefer Types Operated by Hapag-Lloyd

Magnum Reefer
Specialized Reefer used for foodstuff cargo
Magnum Reefers are able to keep temperature
inside the container as low as -35C
Outstanding pull-down capacity in case cargo
is exceptionally not packed into the container
with the needed temperature

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Standard Reefer Container specifically for nonfood cargo like hazardous chemicals
Segregation of two different Reefer fleets in order
to ensure that hazardous chemicals are not
shipped in food grade containers used for
pharmaceutical of food shipments

This reefer type uses little energy compared to

other reefer types and is therefore
environmentally friendly

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Non-Food Reefer

AFAM +
Special Reefer that provides automatic atmosphere
control of Co2 / O2 levels via vents
This unit helps to maintain the atmosphere inside
the container at a set level which is ideal for
products like flowers, vegetables and fruits

Transfresh / Purfresh
Special supplement for Standard Reefer
Containers in order to create tailor-made
atmosphere via gas injections
An additional controller is monitoring & recording
the composition of the atmosphere
The controlled atmosphere containers are ideal
for products like flowers, vegetables and fruits.

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