CANADA: Lessons for the refrigerated freight transportation industry from the current food poisoning crisis

14.sep.08
Blog: Dan Goodwill & Associates Inc.
Dan Goodwill

The outbreak of Listeriosis at the Maple Leaf Foods Inc. plant on Bartor Road in
Toronto appears to have resulted from the formation of the listeria bacterium that
proliferated in two meat slicing machines. Apparently these machines had been
cleaned on a regular basis. Nevertheless, the cleaning and inspection of these
machines was obviously not good enough. The resulting outbreak has killed 15 people
to date across Canada. The numbers may well escalate in the coming weeks.
According to a recent report in "The Globe and Mail," there are approximately 10
million cases of food poisoning in Canada each year, and at least 500 deaths, due in
large part to poor food handling by consumers. While the report does not contain
statistics on the annual number of food poisoning incidents directly related to
improper food manufacturing and freight handling, there exists the potential risk of
massive outbreaks of disease.
While much of the focus of the current crisis has been on the one Toronto based food
plant, the fact is that all food (and pharmaceutical) shipments arrive by truck or
rail at a processing location and are then shipped by truck, rail or air to
distributors, retailers and consumers. Many of these shipments move on temperature
controlled vehicles, either at a specific temperature (or temperature range) or in a
frozen state. An improperly maintained refrigerated vehicle can result in not only
mold on eggs, stale cupcakes or wilted lettuce; they can also result in the
formation of bacteria that can lead to illness and death. Of course they can also
have severe consequences for those transportation companies that provide
refrigerated service.
The recent downturn in the economies of the United States and Canada and the
weakness in certain industry sectors such as automobiles and pulp and paper, has
encouraged some carriers to enter the refrigerated transportation industry or to
expand their business in this market segment. While people may cut back on purchases
of cars and clothing during tough times, we all have to eat and we all (or many of
us) have to take our medications on a daily basis. The attraction of moving food or
drugs is that there is greater consistency to the freight flows. Of course, this is
not entirely true. In fact, for those carriers handling fresh produce (e.g.
watermelons or tomatoes), there can be significant seasonality components.
Moving produce, pharmaceuticals or frozen food is very different from moving a load
of newsprint. In the latter case, you need a truck that can handle the weight and is
free from leaks and jagged edges. The worst thing you can do with a load of
newsprint is get some of the rolls wet or tear some of the sheets. In the case of a
refrigerated unit that breaks down, the potential consequences can be life
threatening.
When you enter the refrigerated transportation industry, the bar is raised. In
addition to the standard operating procedures associated with managing a "dry"
fleet, you need to add a whole new set of variables. Not all reefer carriers are
created equal. Here are some thoughts that carriers and shippers and carriers should
consider.
As a carrier, you need to be very focused on the following items:

• Service life of the refrigeration unit

• Maintenance procedures and schedule

•  Driver training in the operation of refrigeration units

• Driver procedures for monitoring the refrigeration unit while the vehicle is en route

• Refrigeration unit pre-trip checklist

• Use of satellite tracking to monitor the temperature and performance of the unit
  remotely

• Locations for refrigeration unit repair en route in the event of a failure

• Establishing and maintaining written procedures that are followed meticulously by
  employees throughout the company

As a shipper, you need to be very focused on the following items:

• Creating a comprehensive carrier evaluation checklist that looks at a broad range
  of variables (e.g. size and age of fleet, driver training, equipment maintenance
  schedule etc.)

• Visual inspections and documentation of all vehicles that arrive at your dock
  whether for inbound or outbound freight to check for door seals, hinges, latches and
  vent doors that are not properly aligned and for correct temperature settings for
  the refrigeration unit

• Obtaining a set of written procedures from your carriers on how they handle
  temperature controlled freight (A HACCP certificate is ideal but well documented
  procedures with checks and balances are satisfactory.)

• Utilization of "hobos" or other recording devices to ensure a consistent
  temperature is maintained throughout the trip

• Carrier scorecards that measure some of the variables that are specific to reefer
  freight

There are many fine companies in this industry that have implemented and maintained
good operating procedures for years. However, with the current economic downturn,
some companies may try to extend the life a reefer unto beyond its limits. New
entrants to the market may not be as well versed on reefer fleet maintenance
procedures as others. Buyers beware.
Clearly there is much that carriers and shippers can do to run a well maintained
reefer fleet and to manage a safe and secure cold supply chain. If you would like to
discuss your fleet operation or cold supply chain with me or one of my associates,
please feel free to contact me at dan@dantranscon.com.