Identification of issues that impact on the container scheduling efficiency at pome fruit pack house cold stores in the Western Cape.

Prepared by:
Johan Strydom
Consultant, PS Logistics
May 2010

Foreword

Having been involved in fruit logistics for more than 30 years, I was privileged to have been part of the vast changes in logistics that took place in the South African fruit industry during this era.

In this study, I found it rewarding and refreshing to talk to old friends as well as newcomers to the industry. The willingness to share information and opinions made the task so much more rewarding.

Throughout this project, I tried to focus on the goal of establishing the factual situation regarding the impact of inefficient container scheduling at pome fruit pack houses. However, I set as a secondary goal to summarise all the activities in the total container handling chain from arrival in the port to shipment of full containers. By doing this, I trust that this document can serve as a reference and training guide for those who join the challenging fruit logistical sphere.

Table of Contents

• Foreword
• Container Flow Diagram
• Executive Summary and Findings
• 1. Introduction and Purpose
• 1. Container Supply
• 1. Container Availability
• 1. Container Scheduling
  2. 4.1 Specification of Fruit to be Loaded
  3. 4.2 Contracting Transport
• 1. Loading Fruit
• 1. Container Shipping
• 1. Conclusions and Recommendations
• Appendix A: List of Role-Players Interviewed

Container Flow Diagram

Container Flow:
Manufacture → Trade → Reposition → Supply → Store → Inspect → Pre-Trip → Clean → Availability → Transport → Pick-Up → CTO → Book Transport → Monitor → Load Fruit → Select Fruit → Stack → Ship → Scheduling → Loading → Shipping → Scrap

Executive Summary and Findings

Within a few years, the shipping mode of pome fruit has changed drastically from mainly conventional vessels to virtually all hi-cube containers, the latter being loaded at inland cold store facilities. This rapid change found the infrastructure and procedures wanting. Inefficiencies throughout the movement process of containers are evident and put the competitiveness of the South African fruit industry under pressure. Unless these inefficiencies are addressed and effective solutions formulated and implemented, the situation may deteriorate unacceptably.

This report was compiled based on opinions shared by more than 40 role-players, representing the different functional operators in the container scheduling process. The emphasis was on establishing the factual situation rather than formulating wide speculative solutions at this point in time. With so many perceptions present, the real causes of inefficiencies can easily be clouded. Care has been taken to substantiate opinions by getting confirmation from other sources. This, however, does not rule out the possibility that some causes have not been highlighted, especially as the study was done in a specific timeslot in the 2010 season. Critical issues, which may arise later in the season, can be discussed at regular Pack House Action Group meetings.

Issues that impact negatively have crystallised throughout the information gathering process and these findings are listed below.

1. Container Supply

• 1.1 Communication between shipping lines and industry organisations about long-term crop projections, seasonal estimates, and short-term crop changes is lacking and can impact container supply, both short and long term.
• 1.2 In times of container shortages, exporters tend to inflate demands to secure required allocations, leading to late cancellations and last-minute re-allocation of containers.

2. Container Availability

• 2.1 Pick-up times of empty containers coincide with peak urban traffic, often leading to late arrival at loading points.
• 2.2 Recessionary trade conditions are forcing shipping lines to extend the lifespan of containers, risking cold chain integrity if maintenance drops.
• 2.3 Despite PPECB efforts, a percentage of containers are still rejected at loading points.
• 2.4 Poor relations and attitudes of some empty depot operators are not conducive to handling urgent requests.

3. Container Scheduling

3.1 Fruit Specification

• 3.1.1 Inaccurate stock figures due to late transfer of electronic files or wrong assumptions about fruit temperature lead to late bookings and delays.
• 3.1.2 Incompatibility of IT systems causes inaccurate stock records.
• 3.1.3 Poor discipline regarding cut-off times puts pressure on scheduling.
• 3.1.4 Lack of basic fruit knowledge and processes causes poor communication and ignorance of export urgency.
• 3.1.5 Attitude and willingness to be available 24/7 are required for corrective action.
• 3.1.6 Cancellation of booked containers on the last day of stack leads to re-allocation and non-efficient arrangements.

3.2 Contracting Transport

• 3.2.1 Reliability and roadworthiness of trucks are not enforced.
• 3.2.2 Incorrect cargo weight declaration is a serious problem.
• 3.2.3 Overweight containers stopped at weighbridges cause delays and losses.
• 3.2.4 Poor communication of delays prevents proactive steps.
• 3.2.5 Unreliable transport contractors disrupt schedules.
• 3.2.6 The CTO process is time-consuming and outdated.
• 3.2.7 Realistic loading timeslots are often lacking.
• 3.2.8 TTTs (Time Temperature Tolerances) are not always adhered to.
• 3.2.9 Delays from loading to coupling containers to power points are not monitored, threatening the cold chain.
• 3.2.10 Bulk booking on the last day of stack causes poor efficiency and impacts costs and service.
• 3.2.11 Increase of dual loads requires special procedures to minimize costs and avoid cold chain breaks.
• 3.2.12 Container cable theft is a serious cost and disruptive issue.

4. Fruit Loading

• 4.1 Simultaneous loading at several points means PPECB officials cannot always be present, causing costly delays.
• 4.2 Lack of cooled airlocks prevents effective pre-staging.
• 4.3 Loading points are not always accountable for container condition and fruit protocols.
• 4.4 Power plug points are not always available to check container temperature settings.
• 4.5 Cold stores are not geared for random access to individual pallets, causing delays.
• 4.6 Not all cold stores have been converted to hi-cube pallets.
• 4.7 Markets requiring cold sterilisation treatment are increasing, requiring timely PPECB presence.
• 4.8 IT systems at exporters and cold stores are not always compatible.
• 4.9 Poor stock management leads to delays.
• 4.10 Quality control during loading is disruptive.
• 4.11 Poor communication of delayed cooling or stock differences causes futile trips and delays.
• 4.12 Training in basic fruit knowledge and processes is lacking.
• 4.13 Loading points do not all realise their accountability for overloading containers.
• 4.14 Peak season cooling capacity is tested, requiring allowances for longer cooling rates.
• 4.15 Full cold stores make locating individual pallets more difficult.
• 4.16 Lack of analysis of loading statistics delays corrective steps.

5. Container Shipping

• 5.1 Drivers are not always sensitive to cold chain integrity, causing TTT to be exceeded.
• 5.2 Reaction to changed stack times is sometimes lacking.
• 5.3 Late notification of vessels bypassing the port disrupts scheduling.
• 5.4 Excessive standing times at terminals during breaks are unacceptable.

6. General

In a process with so many different players, strict rules and guidelines are necessary, but the ultimate aim to earn maximum income for the export crop must not be undermined by rigidity. Guidelines must assist in giving direction but still stimulate innovative thinking.

Scheduling Report

1. Introduction and Purpose

Ten years ago, most pome fruit exports were shipped in specialised reefer vessels. Now, virtually all are exported in containers, requiring major adaptations at pack house cold stores. In 2009, 99% of apples and pears exported from South Africa were shipped in containers (about 25,000 12-meter hi-cube containers).

This rapid change put pressure on infrastructure, procedures, systems, and people. Despite progress, inefficiencies—especially poor container scheduling—impact pack house operations.

The Pack House Action Group (PAG) decided to determine the factual situation, identify issues, and prioritise key issues for action.

The handling chain of containers can be divided into five parts:

1. Container supply
2. Container availability
3. Container scheduling
4. Container loading
5. Container shipping

Each of these operations has been investigated and findings are set out in the report.

2. Container Supply

• The worldwide fleet of reefer containers is affected by new builds and scrapping of old containers.
• Recessionary conditions have disrupted trade routes and may reduce fleet size.
• Accurate and reliable crop forecasts are critical for planning.
• Availability of selected containers for cold sterilisation shipments requires early and accurate forecasts.
• Shipping lines need timely information regarding crop size, delivery patterns, and intended markets.

3. Container Availability

• Several empty depots for reefer containers are located near the Port of Cape Town.
• Preparation includes cleaning, repair, and pre-tripping.
• PPECB inspects and certifies containers.
• About 3% of containers are rejected at loading points, mainly due to wrong temperature and vent settings.
• Late availability of containers impacts scheduling.
• Good relations with depot operators are key to smooth operations.
• PPECB inspectors play a significant role in the preparation process.

4. Container Scheduling

4.1 Specification of Fruit to be Loaded

• Exporters consult with marketing staff/buyers and loading points to specify fruit.
• Timely and accurate stock figures are vital.
• IT system compatibility is crucial.
• Bookings for the next day must be made by 14h00.
• Inaccurate stock figures and incompatible systems cause delays.

4.2 Contracting Transport

• Most containers are now moved as Merchant Haulage.
• Reliability and roadworthiness of trucks are critical.
• Accurate cargo mass declaration is important to avoid delays and fines.
• The CTO (Container Terminal Order) process is crucial but time-consuming.
• Bulk booking on the last day of stack causes operational issues.
• Dual loads (picking up fruit at more than one cold store) are increasing and require special procedures.

5. Loading Fruit

• There are over 120 PPECB registered fruit loading points in the Western Cape.
• Efficiency at loading points impacts the entire scheduling process.
• Loading facilities vary; mobile ramps are common.
• Early loading practices are still preferred.
• Pre-staging of pallets can help but may compromise cold chain integrity if containers are late.
• Supermarket QC checks during loading increase loading times.
• Not all cold stores are converted to hi-cube pallet handling.
• PPECB presence is required during loading.
• Loading points should take greater accountability for correct weight declarations.

6. Container Shipping

• Loaded containers must be moved without delay to assigned plug point facilities.
• Driver responsibility and attitude are important.
• Special gates for reefer containers are available at the terminal.
• Delays at terminals can impact cold chain integrity and transport costs.
• Stack times are determined by port authorities.

• Weather delays and vessel bypasses can disrupt scheduling.

7. Conclusions and Recommendations

Despite progress, several shortcomings remain, leading to unnecessary overtime and operational costs. It is recommended that priorities be set for each problem area by a Pack House Action Group workshop. Some issues can be rectified quickly, while others may require further investigation.

Appendix A: Persons Interviewed