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Issue 1 2021 - Freight Business Journal Insurance
Protecting the Covid vaccine supply chain
TT Club’s Michael Yarwood looks at some of the risks to operators involved in the enormous challenge of global vaccine distribution.
Already on the front line and proven critical to the world’s economy, the performance of the global supply chain is being catapulted into the public gaze like never before. As supplies of Covid-19 vaccines are ramped up, it is hard to imagine a product more associated with the well- being of the global population and the global economy. The distribution of Covid-19
vaccines has been labelled as
the ‘biggest logistics
project ever’. But without the inevitable emotion attached to its distribution, one could argue it is similar to any other valuable, sensitive cargo. The basics remain constant: identify the characteristics of the cargo to ensure its
integrity is maintained; understand location of manufacture, delivery, routing and volumes, as well as value, and determine the appropriate strategies to adopt for safe and secure transport. However, there are of course considerable differences in distributing this particular cargo, depending on which variant of the vaccine is considered. Critical challenges are
maintaining the integrity of the temperature controlled vaccine supply chain, including accurate instructions and communications between stakeholders.
Risk exists at
every juncture including packaging, packing, transport
Make safe packing your New Year’s resolution, says TT Club
Freight insurer TT Club is urging cargo owners to be more aware of safety issues arising from poorly packed containers and misdeclared goods. It says that its analyses consistently indicate
that two
thirds of damage incidents are caused or exacerbated by poor packing of goods into containers. The Club’s managing director,
loss prevention, Michael Yarwood adds: “The dangers are not just restricted to chemical cargoes, such as those used in paints, cosmetics, cleaning products, fertilisers, weedkillers and aerosols of all types. A wide variety of consumer goods, as well as components used in the manufacture of industrial products, domestics white goods and automobiles, if incorrectly handled in transit can cause major disasters. “The list is long and oſten surprising – BBQ charcoal, battery
powered electronic devices, fireworks, hand sanitizer, wool, cotton, vegetable fibres, marble, granite and other building materials, fishmeal, seed cake and many more.” He advises shippers to read
the Code of Practice for Packing of Cargo Transport Units (CTU Code).
The by the joint International
publication Maritime
Organisation, International Labour Organisation and the United Nations Economic Commission for Europe provides comprehensive information on all aspects of packing and securing of cargo in freight containers and other transport units for sea and land transport. There is also a ‘Quick Guide’
to the Code which includes a checklist of actions and responsibilities for those packing cargoes in freight containers specifically.
and unpacking. Such sensitive cargo will be vulnerable to the smallest error or discrepancy. Vaccines, specifically, are not
just perishable but also subject to tight transport regulations. Of particular relevance are controls on traceability and evidence of integrity throughout the journey. The availability of equipment
might be an interesting challenge in the current circumstances. Air freight capacity has been severely reduced over the last eight months due to the sharp reduction in passenger flights. Sea freight will provide additional capacity; while not a traditional mode of choice for such pharmaceutical goods, the nature of this particular supply chain and the fact that there will inevitably be various production batches, suggests that sea freight could be a good fit. There are numerous existing
solutions including active (powered) containers. But it may be more difficult
to increase
production of this specialist and costly equipment, so semi- active and passive solutions will provide additional capacity and may be more readily scaled up to meet peak demands. Contamination risks will be
amplified by the sensitive nature of the cargo. Carrying equipment will need to be clean, clear of debris, free of visible pests, and controlled to ensure that previous loads will not lead to taint or odour. Ship stowage planning may also require increased attention. There has already been a
reported spike in counterfeit medicines; a reasonable expectation is that a Covid-19 vaccine would be a prime target. This risk may only partially be mitigated by the
heightened regulatory
environment for transport of pharmaceutical products in the current highly politicised circumstances. National policy makers determine
will approvals
and demographic priorities. However, realistic or not, popular expectations will be that distribution and availability are immediate and on a global scale. There will inevitably be those who fall outside of a defined demographic, and who will be willing to pay for expedient access so it is likely that a black market will quickly develop for these vaccines.
Earlier, items such as
facemasks and anti-bacterial hand gel became key targets for perpetrators of cargo crime. Unless distribution plans are perfectly executed, which is unlikely, the Covid-19 vaccine risks being perceived as the single most valuable cargo in the supply chain. The stakes, however, could not be higher - cyber security will need to defeat industrial espionage. P h a r m a c e u t i c a l
regulations alone will be insufficient to support the necessary tracking, tracing and
transparency through
the supply chain; intensified security strategies need to be developed and implemented. The menace of cyber security risks in this instance should put all on the highest alert. In general, freight crime rarely attracts
///NEWS
are regular reports of port congestion or lack of reefer point capacity. Supply and demand levels may be unclear, but significant volumes may be anticipated in coming weeks. While some countries are considering local manufacture and distribution, the logistics requirements are expected to stretch capacity and capability. Distribution of course will
be to every corner of the globe,
necessitating careful
planning and due diligence. While airfreight is widely expected to support the primary movement of the vaccine, the global distribution requirement
will necessitate
substantial surface transport legs. The likely multiple transfers will require most careful management of all aspects. The ultimate consignee in
media attention
but theft, loss or damage of Covid-19 vaccines can be expected to be front-page news. The scale of the logistical
challenge can’t be over- estimated.
Many supply
chains during the pandemic period have suffered stress and disruption, and there
Stena opens live animal site at Hook of Holland
The port of Rotterdam has set up a livestock checkpoint at the Stena Line terminal in Hook of Holland (Hoek van Holland). Animal Centre Hoek van Holland (ACH), run jointly by ECS Livestock and Stena Line, is the only location at a Dutch seaport where live animals can undergo veterinary inspection. Inspection of animals
the context of the vaccine is, of course, you and me; delivery to a destination country or local region is not the end of the supply chain, final mile logistics involving truckers and temporary storage could prove complex. For the very final link in the supply chain we will remain in debt to our medical colleagues.
coming from the UK has been mandatory since 1 January this year, after the end of the Brexit transition period. The European Commission
has given the green light to ACH for the inspection of day-old chicks and hatching eggs and a further permit for inspecting horses is expected to be granted later in this month. Stable space for seven horses is already available. The Netherlands Food
and Consumer Product Safety Authority (NVWA) veterinarians will carry out the inspections at ACH’s facilities.
Umair Aamir Sheikh is Young Forwarder of the Year
Umair Aamir Sheikh from the Pakistan International Freight Forwarders Association, and
Asia-Pacific regional
winner, has been named the 2020 winner of the Young International Freight Forwarder of the Year Award (YIFFYA). The YIFFYA demonstrates
recognition by FIATA, and TT Club as a sponsoring partner of the award, of the need to develop quality in the freight
forwarding industry and
reward young talent. For over 20 years, the YIFFYA has been providing valuable training opportunities for young freight forwarders in the industry. TT Club’s managing director,
loss prevention, Mike Yarwood said: “This year more than ever we at TT want to pay tribute to the freight forwarding fraternity across the world that have helped keep essential global supply chains flowing.
In turn the young, talented
employees of these regional and international companies have excelled. The entries into YIFFA and particularly the finalists have exemplified this talent and dedication. In addition to Sheikh, I want to congratulate them all, and in particular the regional finalists: Femke Marie Fürst (Germany) ; Vimbai Loreen Manyumbu (Zimbabwe)
and Gureeva (Canada).” Anastasia
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