Kuehne + Nagel has spotted an opportunity in the preparation of cargo for shipping. The multinational logistics firm’s latest offering is a packaging service that harnesses software, robotics and the expertise of local packaging providers.

KN Packaging is built on a cloud-based solution from Nulogoy, a developer of packaging software. According to the logistics firm, this provides customers with a targeted and traceable solution for their contract packaging needs and gives them instant connectivity and full transparency.

A second key element is a strategic partnership with Universal Robots, a maker of collaborative robots, also known as cobots. Designed to assist warehouse workers in a variety of packaging tasks, these cobots will boost productivity and lead to a significant reduction in turnaround times, Kuehne + Nagel claims.

The third key plank of KN Packaging is the collaboration with packaging providers, which the forwarder has picked at the national level. This aims to take advantage of local material sourcing and to ensure that design and engineering comply with local requirements and market preferences.

KN Packaging is being rolled out across the logistics firm’s global network.

“With this strategic enhancement of our contract packaging services, we expect to see significant growth across a number of key markets and anticipate deploying hundreds of cobots in our operations in the next few years,” said Gianfranco Sgro, executive vice president for contract logistics.

According to the logistics provider, the global contract packaging market has been growing in excess of 12% a year.

This momentum will likely continue, if not pick up, if shippers heed a recent warning from cargo insurance specialist TT Club. Its insurance claims records indicate that as much as 65% of damages to cargo are the result of poorly packed, blocked or secured freight in cargo transport units (CTUs) – predominantly containers.

In January, Britannia P&I Club, another insurance firm, reported a recent case where a shipment of pressure boiler parts suffered damage during the sailing from Hong Kong to Houston in “moderately heavy weather.” It turned out that the design and strength of the steel structure to secure the boiler pipes was only adequate for inland transportation and shore storage but not for the forces to be expected at sea.

Peregrine Storrs-Fox, risk management director of TT Club, stressed that the material and fiscal damage to cargo are but one aspect of the problem associated with poorly packed or secured cargo.

“TT Club, along with our fellow industry representatives are concerned that preventable incidents, both on land (road and rail) and at sea, arise from badly packed CTUs. The safety of workers, particularly those unloading units at destination, is also at considerable risk. Safe industry packing and securing guidance must be disseminated and followed,” he said.

A number of industry bodies, from the Global Shippers Forum and cargo handling group ICHCA to the World Shipping Council, support the IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units, a non-mandatory set of rules.

“The responsibility of all those working in the supply chain, shippers, packers, forwarders, warehouse operators and transport providers of all modes and in all countries, is clearly set out in the code. This responsibility for the safety of cargo loads and those handling them does not cease when the doors of the trailer or container are closed,” said Chris Welsh, secretary general of the Global Shippers Forum.

Transportation companies’ growing focus on special cargoes, such as pharmaceuticals and food, is also raising the need for improved packaging solutions and draws in new providers. February saw the entry of a new player into the air cargo container market, with an offering targeting the pharmaceutical sector. Aircoolbox launched passive temperature control units made of food-safe high density polyethylene filled with polyurethane foam. According to the company, these units protect products and keep them within temperature ranges of 2-8°C and 15-25°C without additional refrigerant for up to 120 hours.

The food sector is also looking for more sophisticated solutions. Commodity Forwarders, which specializes in perishables, has joined forces with a packaging design specialist to develop solutions tailored to the characteristics of particular fruits and vegetables.

As logistics firms look to add value, packaging will be a prominent target for their efforts.

By Ian Putzger

Correspondent | Toronto