Breakbulk Winter Holiday

WINTER 2015

AIR TRANSPORT IN ANTARCTICA BARGING THROUGH THE ICE EXPERT ADVICE: WEATHER-PROOF LOGISTICS 2016 INDUSTRY WISH LIST HOLIDAY GIFT GUIDE

breakbulk magazine winter holiday guide 2015

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elcome to Breakbulk Magazine’s first Winter Holiday Guide. As the cold weather sets in — at least in many parts of North America, Europe and Asia — our thoughts turn to the men and women responsible for some of our industry’s most challenging projects and cargo transports, made even more difficult by harsh weather conditions.

Ice, snow and subzero temperatures call for special consideration in the logistics plan and can affect equipment, people, transportation, schedules and project costs.

We spoke with several harsh weather project veterans who share their experiences with you in this guide. You’ll also find out what it’s like on a log carrier battling the elements in the Bering Sea, take a journey on Lake Michigan behind an ice breaker and learn about some of the first big cargo flights landing on the ice in Antarctica.

On a lighter note, we’ve gathered some fun and practical gifts selected especially for those in transportation. We’ve got suggestions for business travelers, for guys and gals on job sites around the world and for kids — the future generation of engineers, logisticians and transport specialists.

What’s ahead for 2016? We asked members of our VIP Shippers Club to tell us what industry change they’d like to see in the New Year — and we’re all keeping our fingers crossed. Regardless of whether these wishes come true, we will be covering developments as they unfold in our magazine, on our website and at each of our six Breakbulk exhibitions and conferences. We hope you’ll join us at one or more!

Stay warm and best wishes to you and your family, Breakbulk Events & Media

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The Logistics of Harsh Weather Projects

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An Interview with Bill Keyes, Logistics Director, Houston and the Americas, at Fluor

W6 8 Things to Know About

the Winter Window

By John Amos, head of Amos Logistics and consultant to Breakbulk Events & Media

W8 A New Frontier:

Air Transport in Antarctica

By Georgy Sokolov, Regional Sales Manager, Volga-Dnepr Airlines

W10 Braving the Bering Sea

By Takahiro Hiwatashi, NYK Bulk & Projects Carriers Ltd.

W12 Gift Guide For Business Travelers For Guys & Gals on the Jobsite For Kids Who Love Transportation

W21 Top Tips for Seasonal

Supply Chain Management Tuscor Lloyds UK

W22 One Wish for 2016 VIP Shippers Respond

W18 Winter Photo Contest Results And announcing the next photo theme

w16

W20 Navigating Frozen Waters

By Chris Teague, Director of Marketing, Barnhart On the Cover: BBC Singapore calls Atka Bay, Antarctica on a supplier mission for the Neumayer research station.

NOVEMBER-DECEMBER 2015

breakbulk magazine winter holiday guide 2015

THE LOGISTICS OF HARSH WEATHER PROJECTS AN INTERVIEW WITH BILL KEYES, LOGISTICS DIRECTOR, HOUSTON AND THE AMERICAS, AT FLUOR

THE TAKEAWAY » A fit-for-purpose solution means

identifying the potential impact of extreme weather on the transportation systems and the workforce.

» To be successful, look back to

your worst case scenario, then plan to mitigate the factors that made the biggest impact on cost and schedule.

» Make clearly understood go/no

» Set realistic timeframes by

planning for contingencies.

» When selecting carriers, forwarders and other service providers, look for recent reputation and experience not just in logistics, but across an organization.

» When choosing a project team,

find people who are collaborative, willing to learn and adventurous.

go criteria during construction.

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NOVEMBER-DECEMBER 2015

breakbulk magazine winter holiday guide 2015

O

rchestrating the logistics of multi-billion projects takes experience, foresight and the ability to handle extreme pressure. Add subfreezing temperatures and unpredictable weather -- you know it’s going to get bad, but not when or how bad -- and you’ve got the ultimate challenge. We talked with Bill Keyes, Logistics Director, Houston and the Americas, at Fluor, who has spent years on these projects to find out what it takes to succeed at logistics planning on projects north of the Arctic Circle.

Fluor advocates what it calls a fit-forpurpose solution, which in the case of harsh weather projects means identifying the potential impact of extreme weather on not only the transportation systems but on the workforce. Weather also makes a huge impact on the project’s schedule.

“To be successful, you have to look back to your worst case scenario where the weather disrupted the schedule,” Keyes said.

“Identify the factors that made the biggest impact on cost and schedule -- then you can say, here’s the worst case but here’s how we’re going to mitigate it.”

A logistics director can’t work in a vacuum. Keyes and his team take a collaborative approach, working closely with the construction team to plan for contingencies. “As a logistics provider, it really helps if you take a construction-driven approach to fit their schedule,” Keyes said. “For instance, knowing the average temperature will be around -20 degrees and that you can operate in these conditions, is one thing, but what happens when your modules show up and it’s -55?”

Keyes said equipment will operate at temperatures of -20 to -30, but after that you put your equipment at risk because of the associated hydraulics. The special transportation trucks used to move modules are hydraulic-based, as is the lifting equipment -- and hydraulics don’t work well at extremely low temperatures.

“It’s important to make go/no go criteria that’s clearly understood,” he said.

“Then you’re protecting your equipment, your loads, the personnel who will be operating the equipment and the environment.

“The last thing you want to do in these sensitive environments is have hydraulic lines pop and spray hydraulic fluid onto the tundra.”

The weather also affects the time it

takes to complete tasks. “If something takes 20 minutes in a normal environment, it will take an hour in a harsh climate,” he said. It’s the logistician’s job to plan in a collaborative mode for the effects of freezing temperatures by setting realistic timeframes and by planning for contingencies when the weather becomes even worse than what’s typical for the area.

For Fluor and other engineering companies, modules have been a big factor in mitigating the risks associated with harsh weather jobsites. Keyes said Fluor’s use of its third-generation modules in Canada has resulted in significant cost savings, more control over the schedule and better protection of the environment.

“If you can build a module in a controlled environment -- whether it’s the size of a mobile home or a 5-story building -- you reduce the unit’s exposure to the weather, you reduce the impact on equipment and save on the cost transportation and labor, which can be four or five times higher in these harsh environments,” he said.

Choosing Service Providers

As part of his role as logistics director, Keyes and his team select carriers, forwarders and other service providers. Is the selection criteria different for these harsh weather jobs? In a word, yes. Keyes is looking for recent reputation and experience not just in logistics, but across an organization.

“When I make a decision it’s in collaboration with the project manager, the purchasing manager -- the full Fluor team,” he said. “If the company under consideration has not worked in harsh cold weather in the last five or six years, there’s probably a lack of expertise there.”

In his fit-for-purpose solution he’s looking for not the highest price or the lowest one, but the one that is right for the client and the job with its unique challenges. He’s also looking for how their management team deals with crisis because there will be challenges.

“On Alaska’s North Slope everyone thinks summertime is a wonderful season, but you’ve got to deal with a thing called sea ice. It might not blow out,” he said. “That can impact the delivery of major modules and throw off your schedule by a year. So having service providers that will work collaboratively on a problem is what I look for.”

“We’re very fortunate with an organization like Breakbulk and the forums it provides to allow us to get to know

BY-THE-NUMBERS:

FLUOR’S COLD WEATHER EXPERIENCE

-55

Temperature, in Fahrenheit, reached on the North Slope of Alaska, where Fluor has extensive experience.

400,000

Number of tons Fluor shipped to job sites in Alaska during construction of the TransAlaskan pipeline.

7,970

Number of miles that Fluor shipped modules (via barge) from Louisiana to the Prudhoe Bay on the northern coast of Alaska for one project.

9,380

Weight, in metric tons, of 5 modules shipped to Alaska for another project.

8

Weeks it took a barge shipment to travel from Louisiana to Prudhoe Bay, Alaska via the Panama Canal - exactly the available transport window due to ice-locked conditions in the Beaufort Sea.

145,000

Cubic meters of concrete poured on one project, using special cold-weather techniques, when the temperature was -30 degrees Celsius.

Facts and figures supplied by Fluor BREAKBULK MAGAZINE W5

breakbulk magazine winter holiday guide 2015

each other before we get to those crisis moments,” Keyes said.

Choosing the Project Team

Keyes also has certain criteria he follows to choose employees for a project team. For a senior leader, he’s looking for experience in client relations and someone who is willing to follow as well as lead.

“A lot of times in logistics, we’re the followers,” he said. “We are there to support construction. So I’m looking for someone with a mindset of putting the construction team and the client’s objectives first.”

On top of the right outlook, Keyes wants people who are collaborative in nature, willing to learn and have adventurous spirits. “I’m blessed here with the Fluor team because they want to get out on projects versus staying at headquarters.”

He draws from an experienced generation that worked on Fluor projects under extreme conditions. “There’s a wealth of talented people out there who understand the conditions of Russia, Canada and Alaska from the ‘70s and ‘80s and if you are willing to learn from those individuals, it can be invaluable,” he said.

Keyes also believes in first-hand experience. In his last project, he had people split between Anchorage and the North Slope. He sent his office personnel in three week stints to work under Arctic veterans so they could understand the harshness and reality of the environment they were supporting. If something happened to an individual in the field, he then had someone on the bench to serve as a replacement with no impact to the schedule.

Facing Adversity

When bad news arrives, Keyes begins by taking take a few minutes to reflect and then goes through a logical process: Evaluate the event, define the problem and identify the challenge that must be tackled. He then brings in the people involved and those that will be impacted, including the construction team and engineers. In what could be a tense situation, Keyes keeps in mind that facts help overcome emotion. Together, the team develops a course of action in three steps: • A plan that’s realistic, but expensive • One that’s realistic, but would impact schedule

• A nd finally, a recommendation that is a balance of the two Preparing for challenges, working collaboratively and keeping a cool head are the keys to success in harsh climate projects north of the Arctic Circle, as well as anywhere in the world.

ABOUT BILL KEYES Bill Keyes serves as director of logistics for the Houston office and Americas region for Fluor. Prior to this assignment, he served as a senior logistics manager for Fluor, based in Alaska. In this role, he managed and executed field and international logistics and material management for a project located on the North Slope of Alaska. The project was accessible only by air, an ice road in the winter, and via a short summer barging season. He also had responsibility for aviation (fixed & helicopter), people movement, logistics material services (Alaskan freight forwarding, heavy hauling, material management, base operations and coastal barging), fuel services, and camp operations.

8 THINGS TO KNOW About the Winter Window

by John Amos, head of Amos Logistics and consultant to Breakbulk Events & Media On projects being constructed in arctic climates there are protocols for the construction schedule when planning work during the “winter window” which generally is November 1 through the end of March. Harsh or mild winters will affect work that can be accomplished during the window. What can or cannot be done during the winter window?

While extremely cold temperatures can impede progress, they can also present opportunities. For instance, nearby rivers and lakes frozen to adequate depths can support SPMTs carrying heavy cargoes.

Here are eight things to consider when planning for the winter window:

1

Superloads can be moved over ice for a short distance depending on the thickness of ice. Barging can be used during other periods of the year.

2

Hydraulic lifting may not be possible during the winter window.

3

Concrete in large amounts cannot be poured during the winter window without special techniques.

4

Trucking may be interrupted during the winter window.

5 6

Work in enclosed buildings can be accomplished.

Temporary buildings may be utilized to maintain specific work during the winter window.

7

Prolonged or severe weather conditions negatively affects productive work. This can can occur at any time of the year.

8

During the winter window extra efforts must be taken to protect employee well being.

ABOUT JOHN AMOS Amos is an international logistics and transportation consultant specializing in issues related to planning, operations and regulatory issues. He was employed by Bechtel Corp. for more than 26 years and in his last position was global head of transportation and logistics functions. He is a harsh weather project veteran who worked on the Trans-Alaska Pipeline System project, Syncrude oil extraction project in Fort McMurray, Canada and the Fort Nelson hydroelectric project in Manitoba.

W6 BREAKBULK MAGAZINE

NOVEMBER-DECEMBER 2015

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breakbulk magazine winter holiday guide 2015

A NEW FRONTIER:

AIR TRANSPORT IN ANTARCTICA

by Georgy Sokolov, Regional Sales Manager, Volga-Dnepr Airlines

A

Volga-Dnepr Airlines IL-76TD-90VD has made its first landing on an ice airfield in Antarctica, opening up significant opportunities to support exploration projects on the continent.

The freighter performed its first landing at the Novolazarevskaya Antarctic Research Station airfield. The airplane was flown by a joint crew led by two honored test pilots of the Russian Federation: Mr. Nikolai Kuimov, Hero of Russia, Chief Pilot, Ilyushin Aviation Complex, and Ruben Yesayan, Hero of Russia, Chief Pilot, GosNII GA. Georgy Sokolov, Volga-Dnepr’s regional sales manager talks about the challenges of expanding operations to Antarctica:

W8 BREAKBULK MAGAZINE

What has prompted VDA to want to fly to Antarctica?

We need to constantly look for new customers and markets. Antarctica was the last continent we have not operated to, and we see a lot of potential in going into more remote and less accessible geographies, given our experience and fleet capability.

Why is the IL-76 so well-suited to these flights?

The modernized IL-76TD-90VD is good due to a combination of benefits – its range, payload and pressurized cargo cabin make it the aircraft of choice.

The -90VD version’s more economical and less noisy engines are also very important from an environmental point of view.

What are the current transport and logistics options for companies that need to get cargo to Antarctica?

Most cargoes go by sea vessels and/or ice breakers. There are aircraft operations into various points in Antarctica from South Africa, Australia (Tasmania) and Chile/Argentina – basically, all the points where Antarctica is closest to the “mainland”.

What projects are going on in Antarctica that will present business opportunities for Volga-Dnepr?

All the projects in Antarctica are research scientific projects. Various countries have stations in Antarctica and we see potential to extend the geography of our flights there, including - hopefully - intra-Antarctic flights.

NOVEMBER-DECEMBER 2015

breakbulk magazine winter holiday guide 2015

Do you have any commercial flights planned?

Yes, we have signed an agreement to support the air bridge from Cape Town to Novolazarevskaya for the 2015-16 season and have already operated three flights. More are planned.

What are the specific challenges of operating a big aircraft there?

They are quite similar to all aircraft, not just big ones. Severe weather conditions, relatively undeveloped infrastructure (compared to “ordinary” airports), and landing on ice instead of concrete. We have to monitor the weather very carefully and ensure the runway is well prepared for landing and take-off. Plus, from a regulatory point of view, we had to obtain a number of special permissions and certifications and perform a test flight program.

What modifications to the aircraft were required?

We had to make our Il-76TD-90VD a “combi aircraft” to carry both passengers and cargo. We also had to obtain all of the necessary approvals from the aircraft manufacturer Ilyushin Design Bureau.

Can you explain the conditions during the test flights?

We had to test the PS-90 engines’ capacity to use reverse pull for stopping on ice, measure the landing and take-off distances, work out the optimal operation procedures for landing and take-off and have all that approved by the aircraft manufacturer (Ilyushin Design Bureau) and documented in the addendum to the flight manual. All this has been completed successfully.

What are the biggest challenges for the crew?

Nothing is impossible for our crews -- they are great professionals -- and I cannot think of many things they can see in Antarctica that they haven’t seen yet. But of course, landing on ice is more challenging than on an ordinary concrete runway, and weather in Antarctica can get bad and change quickly, so, we have to follow stricter flight safety rules.

What do customers have to consider when preparing cargo for these conditions?

The most challenging part about preparing cargo is that it is flying in the same compartment as the passengers.

GEORGY SOKOLOV So it has to be packed and marked appropriately. We normally load the bulk of the cargo in advance and then the luggage, so by the time the people board the plane, it is fully ready to go.

Would it be possible to land a bigger aircraft such as the 124 or 747?

Nothing is impossible, but it’s a matter of common and commercial sense. The IL-76 is most suitable for these missions given the existing requirements and limitations.

BREAKBULK MAGAZINE W9

breakbulk magazine winter holiday guide 2015

ONBOARD AN NYK LOG CARRIER

by Takahiro Hiwatashi, NYK Bulk & Projects Carriers Ltd.

C

arrying logs from North America’s west coast to Asia in winter involves a series of specialized operations. NYK Line’s Takahiro Hiwatashi gives us an insider’s look into the process.

NYK loads logs at the Port of Vancouver in Canada and the Port of Everett in Washington, U.S. Before loading the heavy-lift cargo, port captains, ship crews, and stevedores carefully discuss the tandem and heeling operation so that the safety of the workers and the ship can be maintained. Two ship’s cranes are used in tandem to lift the logs while ballast water is transferred between the portside tank and the starboard tank to adjust the vessel’s center of gravity during loading.

“In winter the winter season, conditions on the quay are so slippery and windy that all workers should carefully carry out each action for achieving safe transpor-

tation,” Hiwatashi said.

As the carrier’s 34,000-DWT logger vessels navigate around the Aleutian islands, often encountering heavy weather with winds whipping up to near gale force (Beaufort 7) and heavy snow in the Bering Sea, water from the logs evaporates, causing them to shrink in diameter. To keep the cargo secure, NYK’s Filipino crews, under the command of the boatswain, retighten the deck cargo lashings used to secure the logs. Weather permitting, crew members are on deck three times a day with ratchet wrenches and turnbuckles.

Before retightening operations, ships’ crews have a “tool box” meeting for safe measures and ship’s officers carefully maneuver the vessels with pitching, selecting the optimal route to avoid high sea swell and rolling in consideration of the crew’s safety. During operations, the crew works in pairs and cooperates with each other in an

effective and efficient way, often in severe weather conditions with temperatures from 0 to -10 degrees Celsius.

When the on-deck work has been completed, the crew logs its report, including lashing conditions and pictures. The reports are submitted daily to NYK until the arrival of the vessel at its ports of discharge -- Hachinohe, Japan; Tianjin, China and others.

Weather monitoring systems play a vital role in planning ahead of a heavy weather encounter.

“Experience has taught us that you can never be complacent especially when it comes to dealing with heavy weather,” one of NYK’s ship’s captain said. “At sea, weather can change in an instant and preparedness is very important so as not to have incidents and accidents on board.”

NYK Bulk & Projects Carriers Ltd., a wholly owned subsidiary of Nippon Yusen Kaisha (NYK Line), Japan’s largest shipping company, is one of the world’s leading ocean carriers of projects cargoes and logs. We proactively coordinate with our customers to generate safe transport scenarios in harsh weather conditions — from preloading planning to delivery.

ABOVE: Photos from the daily report show skilled crews retightening logs on deck three times a day while navigating the Pacific Ocean from North America to Asia.

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NOVEMBER-DECEMBER 2015

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BREAKBULK MAGAZINE W13

W14 BREAKBULK MAGAZINE

NOVEMBER-DECEMBER 2015

HAPPY HOLIDAYS! FROM THE ARRC TEAM

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W16 BREAKBULK MAGAZINE

NOVEMBER-DECEMBER 2015

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breakbulk magazine winter holiday guide 2015

PHOTO CONTEST:

WINTER WEATHER We challenged our readers to send us their most striking images of wintertime transport, then go online to vote for their favorite entry. Check out the contestants here, then flip to the Nov/Dec issue of Breakbulk Magazine (page 149) to see who won.

1

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1. BARNHART KNOCK-OUT DRUM TRANSPORT Last winter, Barnhart

was hired to move a knock out drum (KO) to a refinery in Ohio. The KO drum, which weighed around 220,000 lbs., was 72 feet long, 18 feet tall and 21 feet wide. The project started at the Port of Catoosa in Oklahoma and was destined for the Port of Toledo in Ohio. Barnhart loaded the drum into a hopper barge until it reached Chicago, where the drum was offloaded. It was then loaded onto a Barnhartowned ABS-certified deck barge for transport to Toledo with Barnhart’s 550-ton crane. That’s where things got icy.

The narrow waterway that connects Lake Michigan and Lake Huron was stopped by ice. The straits and parts of the lakes were frozen solid due to the extreme temperatures produced by the polar vortex. A Coast Guard ice breaker was brought in to clear a path though the ice, which could be up to a foot thick. The barge was then escorted through the ice and safely reached its destination at the Port of Toledo. LOCATION: Lake Michigan, USA; SUBMITTED BY: Jeff Latture, Barnhart W18 BREAKBULK MAGAZINE

2. RICKMERS-LINIE: RICKMERS CHENNAI The photo was

taken in Hamburg at the quayside just outside our office building on the shore of River Elbe, which was largely ice covered in late January 2014. The mv RICKMERS CHENNAI, which was on charter to us at that time, had departed from Wallmann Terminal about an hour before and managed to navigate through the ice floes on the river to arrive at this spot in a perfect moment when the sun had just set. LOCATION: Hamburg, Germany; SUBMITTED BY: Marko Stampehl, Rickmers-Linie

3. AAL BRISBANE ARRIVING IN PRINCE RUPERT This photo was taken as our A-Class vessel AAL Brisbane sailed into the picturesque Canadian port of Prince Rupert.

LOCATION: Prince Rupert, Canada; SUBMITTED BY: Yianni Pittalis, AAL

NOVEMBER-DECEMBER 2015

breakbulk magazine winter holiday guide 2015

From dusk to dawn, transport of breakbulk, heavy-lift and oversized cargo does not stop. We want to see your images of nighttime transport. Submit your best photos, then go online to vote for your favorite entry. The photo that receives the most votes will be published in the January/February issue of Breakbulk.

Submit high-resolution photos at www.breakbulk.com/breakbulk-magazine-photo-contest.

Entries will be posted on www.breakbulk.com.

Submission deadline: Jan. 15, 2016 / Voting deadline: Feb. 5, 2016 / The winner will be announced on Feb. 15, 2016.

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4. CSL-VASTWIN SPMT TRANSPORT 72 SPMT axle line,

including Tianjie Brand and Dafang Brand. LOCATION: Xinjiang Province, China; SUBMITTED BY: Hong Cui, CSL-VASTWIN (ChinaShipping- Vastwin Project Logistics Co., Ltd.)

5. DUAL LANE BRIDGE BEAM DELIVERY Delivery of steam

turbine rotor from St. John to Pt. Lapreau, New Brunswick. Delivery arranged by Fracht USA and Equipment Express, Canada.

LOCATION: New Brunswick, Canada; SUBMITTED BY: Las Moen

6. BBC SINGAPORE CALLS ANTARCTICA The MV “BBC

Singapore” on a supplier mission for the Neumayer research station. LOCATION: Atka Bay, ice port at Antarctica; SUBMITTED BY: Lisa Girgott, BBC Chartering

7. RARE SIGHT AT PORT OF VANCOUVER A ship docked in a rare snowstorm at the Port of Vancouver USA, January 2007.

LOCATION: Vancouver, Wash. USA; SUBMITTED BY: Kelly Burns

BREAKBULK MAGAZINE W19

breakbulk magazine winter holiday guide 2015

ICY WATERS CHALLENGE BA

by Chris Teague, Director of Marketing, Barnhart

B

arnhart prides itself on keeping jobs on schedule, but sometimes Mother Nature trumps all our careful planning.

Such was the case recently when Barnhart was hired by BP to move a knock out drum (KO) to a refinery in Ohio. The KO drum, which weighed around 110 tons was 72 feet long, 18 feet tall and 21 feet wide.

The project started in December at the Port of Catoosa in Oklahoma and would end at the Port of Toledo in Ohio.

Barnhart loaded the drum into a hopper barge to be transported by the river system to Chicago. The low profile barge was required to pass under one of W20 BREAKBULK MAGAZINE

the bridges along the route. But since it could only be used for inland waterway transportation, the cargo would have to be transferred to another barge to complete its journey.

The barge got to Chicago on New Year’s Day. The KO drum was offloaded and loaded onto an ABS certified Barnhart deck barge for transport to Toledo with a 550 ton DeMag TC 3000 lattice boom crane. That’s where the plan hit a snag.

The barge was accompanied by two commercial tugs, but once it reached the Straits of Mackinac, the narrow waterway that connects Lake Michigan and Lake Huron, it was stopped by ice. The straits and parts of the lakes were frozen solid due to the extreme temperatures produced by the polar vortex.

To keep shipping channels open, the Coast Guard had brought in ice cutters, heavy ships with thick, reinforced hulls NOVEMBER-DECEMBER 2015

breakbulk magazine winter holiday guide 2015

TOP TIPS FOR SEASONAL SUPPLY CHAIN MANAGEMENT

BARNHART and polar icebreaking bows. The ice cutters clear a track in the ice, which can be up to a foot thick, and escort a ship through the passageway. Ships have to be scheduled, and communication and timing are essential because the track closes and freezes up quickly after the ice cutter goes through.

It was a new experience for veteran Barnhart project manager Dan Webb.

“This was the first time we’ve had to use ice cutters. It was challenging because it required a lot of coordination with the Coast Guard. We were not the only ship, so we had to wait our turn,” Webb said.

Communication with the client was also important as BP was kept apprised of the status of the project.

While the delay added a significant amount of time to the original schedule, the barge was escorted through the ice and safely reached the Port of Toledo on January 19.

Storm Abigail was the first named storm of the season, causing disruption across the UK. Severe weather warnings were issued for northern regions with recorded gales of up to 80 mph. Everyone in logistics will remember the winter of 2013/14, and the warnings issued this year for gale force winds and freezing temperatures should ring alarm bells for all involved in UK-based supply chains.

The severe flooding of 2013/2014 highlighted just how vulnerable transport networks are to disruption. Some analysts predicted costs of more than £1 billion to the UK economy.

Whilst the Government has provided funds for flood defences, experts have said this will not be enough for another severe winter.

The result? Road, rail, airport and seaport closures which could bring the UK transportation network to a grinding halt.

The risk is real. Here Tuscor Lloyds offers some suggestions for putting together a solid supply chain disruption plan. It can help minimise your risk and keep your business active during difficult weather conditions.

Your Supply Chain Disruption Plan Should Include:

1

Identify actions to reduce the duration of the disruption

2

Identify what resources (financial, human, logistical, material) will be required to minimise disruption duration

3

Plan what triggers will implement the plan (e.g. delivery delayed due to transportation closures)

4 5

Plan for the worst possible scenarios Look at alternative transportation methods and import routes

6 7

Source alternative (back-up) suppliers Understand your demand and work out optimal stock levels (consider how prolonged cold weather could impact spring seasonal sales)

8

Negotiate with your warehouse / suppliers to increase stock levels

9

And when weather disruptions strike, keep your customers up to date (social media is a great tool for this)

www.tuscorlloyds.com

ABOVE: This image shows the south-west main-line railway at Dawlish, Devon, suspended in mid-air after the foundations were washed away by the storm of 5 February 2014. / Photograph courtesy Matt Clark, Met Office.

BREAKBULK MAGAZINE W21

breakbulk magazine winter holiday guide 2015

One Wish For

20 16 VIP SHIPPERS RESPOND

Continued attention to safety and zero-harm culture.

To have oil prices increase.

– Las Moen, Director, H&OD Logistics, Siemens Energy // United States

– Oil & Gas // Singapore

I would like to see growth in the US flag blue water fleet, something which would require much stronger support for cargo preference enforcement. Secondly, to see much of the older and out-of-date heavy lift fleet depart on one last voyage for the scrap yards!

– Lonnie Tiegs, VP Africa Projects, Teras Cargo Transport // United States

Get healthier. The logistics industry, especially the service providers, are hurting right now.

When the service providers start going out of business it is not good for the shippers.

In 2015, we implemented a logistics strategy and developed a more reliable partner. We also executed our projects in a safe way. 2016 is coming very soon; I would like to see: 1. more efficiency in transportation 2. healthier, safer logistics 3. more contributors with innovative solutions

– Liang-Li Ma, Logistics // China

– EPC Shipper // United States

The increase of oil prices.

– Leandro Brusque, SCM Manager, Subsea 7 // Brazil

NOTE: Recipients were given the option to remain anonymous.

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continued on page W24

NOVEMBER-DECEMBER 2015

breakbulk magazine winter holiday guide 2015

continued from page W22

To see a change by clients toward contractors with a strong safety record, performance, and quality commitment, and away from lump-sum contracts.

Clients must consider carefully the value that a contractor brings and ensure that risks are either shared or priced accordingly.

– Mike Abbas, Regional Commercial Director, Mammoet // United Arab Emirates

Cost saving shall not mean zero investments.

– EPC // Italy

Oil price upturn – Oil & Gas // China

Owners should demolish their older vessels to relieve some of the supply pressure.

And in the same vein, they should buy secondhand vessels before

Peace and increase in social welfare.

– Sait Eren // Turkey

Shipping market recovery in Y2016 – Wenhua Zhu, Senior Shipping Supervisor, ThyssenKrupp Industrial Solutions China

ordering new ships.

– Susan Oatway, Senior Analyst, Drewry // Great Britain

Appointment of competent managers (which means leaders and not only managers) for troubleshooting and strategies.

– EPC // Italy

As market conditions continue to be volatile due to the cost of oil, the upcoming presidential election, and unrest around the world due to terrorism, I wish that companies of all sizes, the smallest to the largest, will take a closer look and make an assertive effort to understand the importance and the impact of a sound logistics program.

– Gary Karnofel, Sr. Project Logistics Specialist, Saipem America // United States

W24 BREAKBULK MAGAZINE

NOVEMBER-DECEMBER 2015