To gain firsthand impressions of current developments taking place in the dynamic refrigerated transport sector - a vital component of the national freight transportation framework -
FleetWatch's correspondent Max Braun met with a cross-section of operators, service providers, equipment suppliers, regulators and associations to bring you their views and opinions of current trends and developments. It's all
interesting stuff with the current buzz words being 'multi-temperature'.
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A TYPICAL secondary refrigeration unit
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The vibrant ongoing growth in demand for fast moving consumer goods (FMCG) is reflected in the significant increase in additional and replacement secondary distribution refrigerated vehicles for the delivery of perishable goods and products. This fast-expanding segment includes a growing contingent of new entrants many of which account for the ongoing demand for small directly driven fridge units.
While the strong demand for vehicles to deliver both more and larger loads to retail outlets, food service companies, fast food establishments, convenience stores, restaurants and hotels tends to cushion the sharp rise in fuel and other operating costs, transporters at every level are facing a number of difficult - if not daunting - challenges. These include:
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Tough and challenging competition.
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Shrinking margins.
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Tightening cold chain and food safety standards.
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Emerging road traffic regulations.
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Fuel and maintenance costs.
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Access to and retention of competent drivers.
However, it's not all bad news. The rapid introduction and acceptance of multi-temperature systems (MTS), lightweight and thermal-efficient materials, airflow ducting and step-by step guidelines to improve cold chain management and food safety standards are examples of positive and cost-effective steps many operators are taking to meet the challenges.
The special report on Vector Logistics' operations (see elsewhere in this issue) outlines a successful approach to securing mutually beneficial long term activity based on cold chain contracts and the benefits that flow from providing outstanding customer service.
A year ago, trailer and insulated box builders were fully stretched to meet the demand for 26-, 28- and even 30-pallet semi-trailers. Transporters generally took advantage of the benefits attached to the 10-metre wheelbase concession and access to a variety of lightweight materials. Much of the success of this approach is personified in the recent launch of Serco's "Super Reefer"
This year, the industry's emphasis has been on replacing and adding secondary distribution rigid vehicles from one-ton to 7.5-ton payloads, many of which are built and equipped as multi-temperature (MT) vehicles.
Carrier Transicold's (Carrier) Arnie van Zyl says the dramatic increase in MT sales flows from the flexibility it offers for mixed loads (frozen, chilled and ambient). The system accommodates the transportation of products for more than one manufacturer and/or customer. Products can be positioned to facilitate handling and quality preservation. Other advantages of MT systems include selection guides for positioning and fine-tuning each evaporator.
With the use of adjustable bulkheads or partitions, load boxes can be configured as a single compartment or up to four separate compartments. This is especially so when longitudinal splits are used as is common practice in Europe.
Multi-Temperature Systems - How much more to pay?
Yes, MTS is more expensive. According to current list prices, the difference in initial cost is approximately 30% more than a comparable standard fridge unit - both before fleetowner discount. To this figure, an amount must be added for the items needed to equip the load box for MT operations. Typically this includes items such as a side door, 3-way sealing gasket, loading locks, movable partitions, additional evaporators, etc.
Based on current values provided by Carrier and Elite Fibre, we can assume a premium of around R60 000 made up from approximately R43 000 for the MT fridge unit and approximately R17 000 to upgrade the box.
Assume an annual straight-line depreciation of 25% for fridge unit and load box and cost of capital at 10.5% a year to amortise the R60 000. This reckons to be an average of R18 350 per year for four years made up from R15 000 depreciation and R13 350 cost of capital.
How much then is the increase in operating cost when expressed in cents per kilometre (CPK)?
Where fleet size can be rationalised to accommodate MT loads, it seems clear this is the way to go. This particularly when taking into account the high initial cost of refrigerated vehicles that are invariable under-utilised in terms of payload and annual workload.
The Cold Chain, Fast 'n Fresh, Parmalat and Vector Logistics are but a few that endorse the merits of MTS when it comes to improving vehicle utilisation, reducing total kilometres travelled and where possible to do so, a reduction in fleet size.
Insulated load boxes
Decently built insulated load boxes offer little scope to reduce weight. High quality Birch ply that strengthens floor structure and some aluminium items is about all that makes a contribution to less mass. However, there may be a worthwhile alternative to the well-established polyurethane on the horizon.
Mark Watters at Elite Fibre is testing a few polyethylene panels to measure the thermal efficiency of this closed cell material that is claimed to be moisture resistant and suitable for bonding with proven bonding agents. If the tests show the material to meet acceptable thermal efficiency levels, it could have potential to reduce panel thickness from 75mm to about 50mm. This would provide a valuable increase in body width to accommodate side-by-side pallets. Dairybelle's Dawid Pepler is also interested in the test results that could lead to what he describes as an interesting challenge.
Elite Fibre, along with other box builders such as Nash Bodies, confirms a steady stream of orders for both MTS and standard insulated boxes. Smaller vehicles equipped with directly driven fridge units are also in demand by operators serving the fast growing franchised fast food segment
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When
it comes to exports there is a
growing
awareness
among exporters that they need to
accept responsibility
for the products they haul
John
Ackermann
SARDA |
Food safety and the cold chain
Transporters engaged in primary distribution hauling mainly fruit for export are still not taking advantage of airflow ducting. This, in spite of the good results claimed for ducting in any number of secondary distribution operations.
According to SARDA's John Ackermann, transporters need to be more proactive in implementing and managing the cold chain. "When it comes to exports," says Ackermann, "there is a growing awareness among transporters that they need to accept responsibility for the products they haul."
Malcolm Dodd, a PPECB cold chain specialist, says South Africa is losing valuable exports due to inconsistent and predictable management of the cold chain. This is noticeably so when considering the rise in temperature of certain fruits as a result of poor airflow while being transported by road.
Local regulations applicable to perishables of vegetable origin for export continue to lag those of the EU and UK. In terms of the Food Safety Act, all transporters of such products are required to register with the Department of Agriculture. Dodd says the PPECB is about to launch a programme to assess the cold chain in terms of international market requirements. Shortcomings in terms of road transport vehicles and marine containers will be addressed.
Ackermann says in the absence of enforcement, SARDA would like to see a greater commitment to self-discipline and willingness on the part of SARDA members to be seen and identified as strong supporters of SARDA's principles. This especially in respect of exports but also locally to meet the growing number of supermarkets, fast food and convenience stores operating in a climate which sees an ever-extending of shopping hours.
Food Safety - self discipline in action
Fast 'n Fresh, the long established primary and secondary distributor of frozen, chilled and ambient products, is a good example of how the cold chain and food safety should be managed. Gavin Wilson, MD of Fast 'n Fresh, says that to be in the business of MT road transport with the objective of achieving sustainable growth for all stakeholders, each and every process must be designed to ensure the integrity of customers' food products is assured.
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Here are some salient features from Fast 'n Fresh's cold chain and food safety standards. It's impressive stuff...
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Trailer and load box interiors - including the inside roof - are non-porous, scratch resistant and water proof.
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Products are odour resistant.
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Entry plates are fashioned in stainless steel.
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Wash bays comply with municipal by-laws and local authority specifications in terms of wastewater disposal. Cleansed wastewater is used for cleaning trailer exteriors.
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All cleaning materials are bio-degradable.
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Interiors are washed every 24-hours for secondary distribution vehicles and every 48-hours for primary distribution vehicles. All cleaning materials and disinfectants are formulated for food products.
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All interiors are steam cleaned monthly to ensure an intensive process of sanitation.
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Interiors are subjected to a twice annual sanitising and buffing by a competent, independent contractor.
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Exteriors are washed with heavy-duty cleaners and degreased with soluble materials.
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All units passing through wash bays are inspected and recorded.
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Thermal dividers constructed in-house to suit each trailer are lightweight, water resistant closed cell foam covered by plasticized canvas.
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Double dividers are used to seal frozen compartments.
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Dividers are strapped in place and replaced every year.
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Drivers are trained and inducted in the importance of hygiene, temperature sensitivity, temperature monitoring, and random checking of stock during loading and at destination.
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All random checks are carried out with supervision.
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Temperature is observed and monitored every two hours en route and continuously until the product is delivered.
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Temperature is monitored remotely from the company's control room.
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All drivers are equipped with their own temperature monitoring equipment.
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Drivers check loading procedure, installation of dividers and sealing whenever vehicles are not pre-loaded.
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Any damage to trailers en route is reported at destination.
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Trailers are regularly maintained.
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All staff members are motivated and behave responsibly.
It's all the right stuff and with the enormous growth opportunities beckoning this sector,
FleetWatch encourages all players to adhere to the highest standards as outlined by the Fast 'n Fresh example.
As Malcolm Dodd points out above, South Africa is losing valuable exports due to inconsistent and predictable management of the cold chain. With local regulations applicable to perishables of vegetable origin for export continuing to lag those of the EU and UK, self regulation is the way to go.
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Effects
of temperature |
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| The graphs shown here depict how fruit respirates if the temperature is not held down. They serve to demonstrate just how an important a role the transporter plays in ensuring that quality fruits get to the markets - both locally and internationally. For those not in the know, respiration is the process whereby all living organisms convert sugars in a chemical reaction with oxygen to release energy, carbon dioxide and water. The energy drives the life process and is what is often referred to as vital heat. This is the heat energy that refrigeration systems have to remove from stored or transported produce. Apples have a respiration rate about one tenth that of avocados. The rate of respiration increases as much as five fold for every 10°C rise in temperature. That is why it is so important to keep the product as close to the chosen set point as possible. And you thought refrigerated transport was 'sommer net trucking'. |
