Opportunity to carry high value, temperature sensitive freight

mdrose · May 14, 2012

My company has developed temperature controlled containers that can be used in non-refrigerated vehicles and provide better control and temperature uniformity than reefer trucks.

Pharma companies that ship high value, temp sensitive freight are requiring better temp control as well as data logging and remote monitoring that we provide built in to our product.

Major pharmaceutical companies are qualilfyring our containers for air shipment (our containers are FAA approved), and we are looking o expand into the large ground transport market.

I would like to discuss business opportunities, and receive feedback from Sprinter Van / Cargo Van owner operators and fleet owners. Our specialized containers will allow a standard van (instead of a large reefer truck) to carry high value freight and allow their operators to offer a premium service.

Please feel free to contact me at [email protected]

Thanks,

Mike Rosenblum
Director of Marketing and Business Development
Cool Containers, LLC. - PharmaPort 360

xiggi · May 14, 2012

Interesting but not sure how well it would work in the expedite market. A vehicle that can be dedicated would be more suited from what I see. In our world once you drop off you need an empty vehicle ready for as many load options as possible.

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ATeam · May 14, 2012

Some moderators may consider the above post to be a code of conduct violation but I don' think so. Nothing is being sold directly to forum readers so I would not consider it advertising. It is also an interesting post.

This product is another example of technology taking the driver out of the picture (in this case out of the information flow picture), enabling goods to be shipped at lower rates. The products shipped may be high value but when the driver or the truck's equipment is being relied upon less and less for the added transportation value provided, transportation pay will decline.

Shippers don't want reefer trucks and teams. They want the temperature of their products to be maintained at a set point while in transit. If ways can be found to do that without reefer trucks and those ways are less expensive, you can bet your bottom dollar that shippers will embrace those ways.

Turtle · May 14, 2012

I've hauled a few of those containers. They are self-contained and will fit into a van. It's essentially a pallet, same as any other freight, that gets loaded and unloaded with a forklift. Once you drop, you're empty, no dedicated vehicle required.

xiggi · May 14, 2012

Turtle said:
I've hauled a few of those containers. They are self-contained and will fit into a van. It's essentially a pallet, same as any other freight, that gets loaded and unloaded with a forklift. Once you drop, you're empty, no dedicated vehicle required.

His post being directed towards truck,.fleet owners leads me to believe they are in this case coming from a different angle. otherwise I would think it would be shippers/manufacturers they would be seeking out. I was just pointing out that for expedite van, fleet owners it might not be a viable option.

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Wolfeman68 · May 14, 2012

Turtle said:
I've hauled a few of those containers. They are self-contained and will fit into a van. It's essentially a pallet, same as any other freight, that gets loaded and unloaded with a forklift. Once you drop, you're empty, no dedicated vehicle required.

I hauled a similar container, but I wouldn't call it temp controlled. It used dry ice to keep ice cream frozen. The consignee unloaded the container and I was stuck with it. Had to drop it at another location.

My concern with containers like those mentioned above is what happens if they malfunction? Who is liable for product damage, where would they be repaired, what is the drivers responsibility to monitor the unit.

I see no benefit to the owner of the truck or the carrier. Just risks.

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Lawrence · May 14, 2012

Let's see what kind of feedback they get.

I can it saving a Sprinter/cargo van owner thousands of dollars and still being able to provide premium air temp service.

Monty · May 14, 2012

What a great idea ..... secure for multiple receivers, portable and trackable ... what's not to like!

mrgoodtude · May 14, 2012

Lawrence said:
Let's see what kind of feedback they get.

I can it saving a Sprinter/cargo van owner thousands of dollars and still being able to provide premium air temp service.

Pretty impressive
Curious about the 72 hr charge rate as it pertains to overseas shipments.
Guessing if you had a Sprinter and contracted with UPS you could make a little change?
http://www.coolcontainers.com/UPS-Healthcare-Logistics.aspx

xiggi · May 14, 2012

In the van world the volume of temp controlled freight is just not that big. I see it as a money loser due to lost freight opps. Again I am talking in the expedite market. I am guessing those things will go between the wheel Wells. What you going to be able to haul while waiting on the next temp controlled load? The fed people with reefers built in barley can squeeze in a couple 48 inch wide pallets when hauling other freight. Now if like turtle said the shipper provided it and you dropped the unit upon delivery then all is good. Imho from the expedite van owner side I see it as a net loss to actually have ownership of the unit.

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mrgoodtude · May 14, 2012

xiggi said:
In the van world the volume of temp controlled freight is just not that big. I see it as a money loser due to lost freight opps. Again I am talking in the expedite market. I am guessing those things will go between the wheel Wells. What you going to be able to haul while waiting on the next temp controlled load? The fed people with reefers built in barley can squeeze in a couple 48 inch wide pallets when hauling other freight. Now if like turtle said the shipper provided it and you dropped the unit upon delivery then all is good. Imho from the expedite van owner side I see it as a net loss to actually have ownership of the unit.

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Probably would expand opportunities for Vans as the shipments often are one to two skids but as you pointed out will have to be dropped like the enviro-tainers.
With UPS and their vast network embracing the tech I could see it being doable.

paullud · May 14, 2012

Can drivers sleep in it while in Laredo?

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davekc · May 14, 2012

Seems llike more of an item for the shipper. If not using it then what? If doing a dedicated with these it might work but that would be it as far as a van driver owning one.

eugene · May 14, 2012

We haul shellfish in my vans to get out of new england it may work for that ????

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mrgoodtude · May 14, 2012

paullud said:
Can drivers sleep in it while in Laredo?

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I like this guy^^^^

Kristi · May 14, 2012

mrgoodtude said:
I like this guy^^^^

Me too! Lol

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Turtle · May 14, 2012

xiggi said:
In the van world the volume of temp controlled freight is just not that big. I see it as a money loser due to lost freight opps. Again I am talking in the expedite market. I am guessing those things will go between the wheel Wells. What you going to be able to haul while waiting on the next temp controlled load? The fed people with reefers built in barley can squeeze in a couple 48 inch wide pallets when hauling other freight. Now if like turtle said the shipper provided it and you dropped the unit upon delivery then all is good. Imho from the expedite van owner side I see it as a net loss to actually have ownership of the unit.

Exactly. The ones I hauled, the containers themselves belonged to, I believe, the shipper, which were pharma companies in every instance. As for actually owning one, no thanks. I don't even have room in here to carry around a Honda generator, much less a 44x48x48 refer unit when I'm not using it.

The ones I hauled, I have no idea who made them, whether it was Cool Containers or whomever. But they were self-contained and required no attention from me whatsoever. It was also noted on the BOL in every instance (at my insistence, for which I received no resistance) that the driver would be responsible for physical damage only, and was not responsible for monitoring, maintaining, or the failure of the cooling unit itself.

dabluzman1 · May 14, 2012

Its not a new idea. As said by others, yeah we have carried them.
Both dry ice and self contained refrigerated models.
What stuck in my mind was the fact that the shipper who wanted to
use these containers also wanted them shipped on a temp controlled
truck. So we loaded the refrig units and turned our reefer on and off
we went.
Cost saving?
Naw just doubly cool.

mdrose · May 15, 2012

I appreciate the feedback on the Temperatre Controlled Container, some very interesting comments both positive and negative.
To respond to some of the issues brought up:

Reverse logistics: yes, this is an issue. If the container is mounted into the van, there would have to be another customer load nearby to pick up and move. Or if the container slides out, depots or logistics arrangements would have to be offered.

Who owns the container? If a fleet owner, or owner operator owned them (or more likely had a long term lease) they would have to be able to charge enough more per mile to make this a worthwhile endeavor. I know Pharma Customers will pay a significant premium to ensure their products get to their destination on time and in temperature, and can be tracked and monitored during the whole journey. I would think (hope) that the increased rate would also make it to the owner/operators?

Volume of Pharma Temp Sensitive freight is not that big. Very true, but growing very rapidly. Most of the drugs in clinical trials are biologicals - there is a boom going on in cold chain shipping, and this will continue for years.

And the best issue brought up: can you sleep in it? We're working on that.....

Mike

moose · May 15, 2012

mdrose said:
- there is a boom going on in cold chain shipping, and this will continue for years.

Mike, there are also Millions of temperature tracked reefers trailers that haul freight for WAY less.
they have a good paying back loads, and offer premium logistics serviced.
with the BIO-FRESH regulations being introduced into the North American market, those teams services trucks can haul Pharma for just a bit over the cost of fuel.
very competitive nitch.