The cold chain is the process of maintaining the temperature of food or pharmaceutical products throughout their journey from production to sale. Within this cycle, cold logistics play a fundamental role in enabling goods to reach the end consumer intact. The cold chain is one of the most dynamic sectors in which C.T.I. International Forwarder operates, providing our customers with an efficient and cutting-edge service.

What is a cold chain and what are its stages?

For companies working with fresh food, frozen products, or medicines, the cold chain is one of the most crucial aspects of safe and sanitary product delivery as it allows avoiding thermal shocks that may alter product properties. In fact, cold chain is precisely the process of maintaining a constant temperature of these delicate goods throughout their life cycle from production to sale, including transport, storage and loading and unloading.

In order for these products to arrive to the end customer intact, it is therefore necessary to ensure the efficiency of each stage of the cold chain, namely:

• After production, the first storage of the article takes place, with possible rapid blast chilling
• Storage in temperature-controlled cold stores
• Transport from production centres to storage warehouses using suitable vehicles
• Storage in warehouses
• Transport to distribution centres, using vehicles equipped to keep the temperature under control
• Refrigerated point-of-sale storage

Every single step is of fundamental importance to avoid product deterioration. This is why the entire cold chain must be controlled through a quality management system that documents and shares updated data with all operators involved.

Given the care required in this process, our company ethos of compliance with regulations provides a selected and trained staff to deal with every aspect of cold logistics, ensuring the correct storage of products.

Cold chain safety and relevant regulations

The cold chain requires qualifications, precision, and strict compliance with the laws relating to food hygiene, as set out in the HACCP (Hazard Analysis and Critical Control Points). This set of regulations aims at guaranteeing product health and is a true control system that involve all the players in the cold chain: producers, transporters, and distributors.

Therefore, to avoid any contamination or degradation, operators involved in the various cold chain stages are required to meticulously comply with:

• Constant cleanliness and hygiene of premises, equipment and means of transport
• Pre-established critical limits in the various stages of the cold chain
• The temperature capacity of different means of transport

What temperatures should be maintained in the cold chain?

Temperature-sensitive products must therefore follow precise hygiene measures and respect the temperatures laid out by the law. Frozen foods, as declared by Legislative Decree No. 110 of 27 January 1992, must maintain a constant temperature of -18° Celsius, however, during transport, small upward fluctuations of no more than 3°C are permitted. As far as fresh food is concerned, each has its own reference temperature, for example:

• Meat +7° C
• Fish +2° C
• Fresh products +5° C

Finally, the same applies to pharmaceutical products which, depending on their type, are subject to specific temperatures and tolerances. Not only that, in some cases additional parameters such as the level of air quality are also required, which can make the correct cold chain process even more difficult.

It is very important that these temperature limits are respected as the interruption of the cold chain causes the formation of certain micro-organisms that can deteriorate the product and make it harmful to the consumer’s health.

Transport and cold logistics

In regards to cold logistics, the transfer of temperature-sensitive products requires the use of suitable means of transport, manufactured according to European ATP (Accord Transport Perishable) standards. In addition, the transporter is charged with the task of:

• Arranging the goods for proper cold air circulation
• Measuring the temperature of the products during the entire journey
• Documenting the data in order to make it available to regulatory bodies

This is therefore a complex sector that requires experience, expertise and attentive care. For this reason, it is always advisable to rely on expert companies, like us here at C.T.I. International Forwarder. Thanks to a widespread network of operators and state-of-the-art equipment, we guarantee efficient management of the cold chain in both the storage and transport of products at controlled temperatures and ensure maximum protection for our customers and end consumers.

The International Transport Forum (an organization operating within the OECD) has for years been warning about the size of container ships which they consider are too large.

Following the blockade of the Suez Canal, the debate entered the public domain, leaving serious doubts on the balance between pros and cons regarding the size of these vessels. According to an analysis by Allianz, the number of 20-foot containers that ships can transport has increased by 1500% over the past 50 years. In 2006 there was a decisive leap when Maersk introduced the first mega-ship which could carry about 15 thousand containers, doubling the previous record. To date, there are about 133 ships with a carrying capacity of between 18 and 24 thousand containers. This development is mainly due to the economy of scale: the use of a single ship instead of two to transport the same cargo saves fuel, significantly reduces the cost of transport per container and reduces the environmental impact of the ship. However, there are also negative aspects, namely the risk of accidents due to the greater risk of losing part of the load because of bad weather, having a larger surface area and consequently more height, and greater manoeuvring difficulties, especially in the narrowest channels such as the Suez and Panama canals. Furthermore, only a few companies own all these giants of the sea, and they can easily meet around a table to define tariffs and service protocols together.

At the same time, there are not very many ports that could be widened and deepened to accommodate such ships and offer shore services and efficient connections. In addition to these complications, we must consider the delocalisation of production with respect to where the consumption will take place, this concerns not only low-tech products, but increasingly semi-finished products. For example, to put together an iPhone, Apple has to count on prompt supplies from 49 countries. Pfizer vaccine has 5,000 suppliers located around the world. It can therefore be said that international economic integration requires efficient supply chains and the only apparent answer at the moment is the use of mega ships.

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Similar to the effects that 9/11 had on air transport, the current pandemic caused by the new Coronavirus has created an unprecedented worldwide crisis and has led to significant changes in cargo shipments.

Transport of goods is a fundamental pillar of the European Union considering that the logistics and transport sector has a value of 675 billion euros and the volume of goods traffic handled within the Union amounts to 3731 billion tkm (tons transported per kilometre) and employs 11.7 million people, suffice it to recall that during lockdown, the flow of food supplies and essential goods was not interrupted, with articulated lorries and trucks crossing along empty highways, and containers and cargo trains in deserted ports. But, despite all this, there have been very serious repercussions on transport, with a collapse of international trade due to a huge fall in supply and demand.

Air cargo sector has been the most affected, with an estimated loss of -16.8% for 2020 in terms of tkm (in the first 5 months of the year it had dropped by -26.7%) due to the significant reduction in flights, with passenger flights decreased by 95%, leading to countless inconveniences, delays and price increases for goods sent by air. Belly capacity, which means hold capacity, has dropped by 70% and is currently seeing a lot of competition, thus compensated by a 32% increase in the use of all cargo aircraft, but without an increased demand.

Furthermore, the decrease in passener flights to certain places such as small cities, makes the shipment of goods to these destinations even more complicated, requiring a multimodal shipping service, or the combination of several services, for example transport by air and land: shipping the goods first by air to larger neighbouring cities and then continuing by truck.

According to studies by McKinsey (a consultancy firm), international freight volumes will take 15 to 48 months to return to the levels of the last trimester of 2019, with some locations more affected than others. Unfortunately, the rush to bring personal protective equipment (PPE) to markets has diminished as supply chains have become regulated.

As international freight forwarders, we at C.T.I. will help you organise new strategies for the transport of your goods, providing the best solutions in terms of scheduling and budget at any time of the day and making the whole operation simple for you.

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The harmonized system (in English Harmonized Commodity Description and Coding System or, simply, Harmonized System – abbreviated as HS code) is a standardized system of nomenclature of customs tariffs that classifies each individual product through the use of a series of numbers.

This numbering is used in trade between nations, both in exports and imports, to allow a clear and rapid identification of goods.

Initially, the harmonized system was introduced by the “Custom Cooperation Council” in 1983, which then evolved into the WCO (World Custom Organization – WCO), a supranational organization based in Brussels (Belgium) and with over 170 member states.

HOW IS THE HARMONIZED HS SYSTEM DIVIDED?

The harmonized system (HS) is divided into 21 sections, subdivided in turn into 99 chapters sorted by type of goods, to reach 5000 groupings of goods.

The basic classifications, harmonized globally, are contained in the first 6 digits of the code (the first 2 digits correspond to the section, the second 2 digits correspond to the chapter and the third 2 digits correspond to the grouping of goods) and each state can divide further the goods included in these items, therefore from the seventh digit onwards the various customs tariffs may differ from each other. This structure is updated every 5 years, to take into account the evolution of the products subject to international exchanges, the last update took place in 2017.

WHAT ARE TARIC CODES?

The TARIC code is a method of classification and identification of goods traded internationally between the member states of the European Community, for the purpose of determining customs tariffs. TARIC codes, that is, the “Community customs tariff” have been applied in the European Union since 1987. TARIC codes are composed of 10 digits and are based on the nomenclature of the Harmonized System (HS) established by the international convention of the same name. They include, in addition to the rates of duties applicable to imports from third countries, the preferential duties applicable to goods originating in the countries to which the European Union has granted special treatment and a whole series of other specific measures.

The correct coding of goods is extremely important as it influences the application of import duties.

Do you want to know more about this topic?

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From January the 1st, for decision of IMO (International Maritime Organization) the “Sulphur Cap” will come into force. The Sulphur limit will then change from actual 3,5% to 0,5%.

According to the study “Global Sulphur Cap 2020”, recently published by DNV GL on the case, more than 70.000 ships will be involved globally. If the ship is not up to code from 1/1/2020 won’t have the permission to sail.

To meet the conditions of the legislation by 2020, shipping companies will have to comply with these by choosing one of the following options:

1. Using new fuel: before the end of the year, all ships of the fleet must have done the tank cleaning from the remainder of the old fuel in order to use the new one. The cost of the “Sulphur compliant” fuel oil is, however, much higher than the standard and the vessel must be stopped to do the cleaning.
2. Installing “Scrubber”: a filtering system for Sulphur oxides, a very expensive process (from 2 to 10 million dollars, depending on ship’s dimensions) without considering that installation requires a dead ship.

Both solutions entail the detention of the vessel and massive extra costs for the companies.

But what happens to me as a customer?

Limited spaces on ships, since they will be stopped in rotation in order to comply with the regulation from January the 1^st, and higher costs for shipping companies will affect end-consumers too.

If you would like to know more about it and know what CTI could do for you, ask us.

How many times in your life have you dealt with the topic of the chargeable weight of your shipment with carriers? Everything will not always have been made clear to you, while a considerable weight is covered with taxes and costs that you or your customers face daily

We plan to sort out any concerns you may have by helping you to understand and teaching you to calculate the chargeable weight, depending on the type of shipment you are making so that you are not unaware of the facts in this matter. The premise, although trivial, is that the volumetric space is calculated by multiplying the three measurements length, width and height of each carton or package sent. The result is divided by the ratio applied to the individual type of delivery that varies according to whether it is shipped by air, sea, land or courier.

This result will be compared to the gross weight of the goods. The highest weight between the gross (real) weight and the one obtained from the calculation will be the one taken as the weight to be considered for the shipment.

Here are the weight / volume ratios.

• For air cargo: The volume to weight ratio is very simple, for every cubic metre of space a weight of 167 kg (formula: 1 CBM = 167 kg) is estimated, but if the weight exceeds the estimated weight, taxation will be applied on the actual weight. Example: 5 parcels with a total weight of 250 kg single item size of 60x70x80 cm. Shipment volume will be calculated as 5 x 60 x 70 x 80 = 1.68 m3 The chargeable weight will be 1.68 m3 x 167 = 280.56 Thus the cost of shipping will be calculated on the chargeable weight of 280.56 kg.
• For sea cargo: (In the case of LCL) the tax is applied per cubic metre or per ton according to the ratio: 1 cubic metre = 1 ton, (expressed in W / M formula). That will multiply the rate for the volume if in absolute terms the value in cubic metres is greater than the value in tons and vice versa for the weight if the value in tons is greater than that measured in cubic metres. Example: 8 packages with a total weight of 2200 kg individual packet size 120 x 80 x 150 cm The volume of the shipment will be determined as = 8 x 120 x 80 x 150 = 11.52 m3. The chargeable weight will thus be 11.52 m3 x 1000 kg = 11520 kg that is greater than 2200 kg. Thus the cost of shipping will be calculated on the chargeable weight of 11520 kg.
• For overland transport: In general, in the case of truck shipments, the tax is applied per cubic meter or kilogram according to the ratio:1 cubic metre = 300 kg. That will multiply the rate for the volume if in absolute terms the value in cubic metres is greater than the value in kilograms and vice versa for the weight if the value in kilograms is greater than that measured in cubic metres. Example: 5 parcels with a total weight of 700 kg with the size of each package 120 x 80 x 100 cm The shipment volume is determined as 5 x 120 x80 x 100 = 4.80 m3 The chargeable weight will be 4.80 m3 x 300 = 1,440 kg Thus the cost of shipping will be calculated on the chargeable weight of 1440 kg. Courier shipments need to be considered differently as they often differ depending on the carrier concerned. We hope we were able to make all this all bit less obscure but if you require further clarification, please contact us, our staff are always at your disposal.

The Food and Drug Administration (FDA) is the U.S. government agency that regulates the products that are marketed in the United States, from food to ethical medicines.

The FDA reports to the U.S. Department of Health and Human Services. The primary objective of the Food and Drug Administration (FDA) is to protect and safeguard the safety and health of citizens by issuing rules and principles of control, regarding the marketing of products, which are investigated according to rigorous processes, including: medicines, foods, supplements and food additives, animal feed and veterinary drugs, medical devices and equipment (including glasses), blood and blood products for transfusion, and cosmetics. Instruments used for control include both pre-marketing assessments and postmarketing monitoring.

For this reason, the first step for any company that intends to export to the United States is FDA registration, which is valid for the calendar year (so regardless of the registration date, it runs out on December 31st).
Until 2012, registration for glasses manufacturers had no cost, but in 2013 the Obama administration put glasses on the same level as medical devices. The cost for 2022 was $ 5,546.00. For 2023, the total cost increased to $ 6,493.00 and for 2024 it has been set at $ 7,653.00.

In order to register, companies must appoint a “representative” based in the States, who the FDA will refer to in case of any problems.
At the end of the registration (which can be done online) you will receive your so-called FDA number, which will be specified in the documentation that your US broker will submit to US Customs and allow your good to be cleared.

In addition to the registration of the manufacturer, the recipient must also be registered with the FDA and declare who the manufacturer is.
To date, however, there are some exceptions for authorised practitioners who create or modify a medical device, which is also applied to stores and similar outlets that make direct sales to the final consumer (Direct Sales Under 21 CFR 807.65)

The matter is, however, very complex and intricate, as there are exceptions and inconsistencies depending on the customs officer and the customs through which the goods enter the United States. If you would like any further information, all CTI staff is at your full disposal, including the support of our agent who can also act as an FDA representative.

From 1 October 2018, new regulations will come into force for the import of packaging and wood products from these countries

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