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The mind-boggling logistics of transporting one of the most important vaccines in history

Two coronavirus vaccines are in line to be authorized for emergency use in the United States, and a massive transportation network is standing at the ready once they receive government clearance.

The delicate, mind-boggling logistics of distributing the vaccines will be crucial. The challenges of moving millions of doses — over thousands of miles and under strict temperature specifications — are enormous.
Here’s what we know about how vaccines will be physically transported from drug manufacturers to medical facilities around the world.

The first 24 hours

Within 24 hours of an emergency use authorization from the US Food and Drug Administration, manufacturers and shippers are prepared to activate the delivery chain — a complex system of warehouses, trucks, planes, and, ultimately, delivery to the site where shots are administered.
The planning, dry runs, and stockpiling is already underway.
“We’re moving all of the needles, the syringes, the other parts and pieces to include the alcohol wipes and necessary [supplies] in order to administer these vaccines,” said Lt. Gen. Paul Ostrowski, the director of supply, production and distribution for Operation Warp Speed, the US government’s effort to develop a Covid-19 vaccine.
Pfizer (PFE) is stockpiling an undisclosed number of vaccine doses in Kalamazoo, Michigan.
Once the vaccine is authorized, Pfizer doses will be packed into trucks and much of it sent to airports to be loaded onto planes.
The distribution of Moderna (MRNA) vaccines is set to be handled by the medical supply company McKesson.
“It’s a really quick process, simply putting together the packages on dry ice and shipping them out,” Ostrowski said of the Pfizer vaccine.
Trucks will ferry the vaccines to planes that will deliver them around the country.

Staying cool

There are two ways to keep the vaccines cold in transit: Active cooling containers and passive cooling containers.
Active containers use batteries and a cooling system to keep the contents cold. The containers are charged while they’re on the ground, then the battery system kicks in while they’re in transit. Temperature-sensing devices in the actively cooled containers also have the capability send an alert if the temperature deviates — even slightly, by a quarter of a degree — outside of the approved range.
Passive containers are packed with ice packs or dry ice, depending on how cold it needs to be and how long the trip is. Typically, if the route has more than one stop, these containers will move to cold storage facilities between legs of the trip.
Dry ice can pose its own risk in large quantities. Regulators typically have strict weight limits for dry ice on flights because it releases carbon carbon that “can cause aircrew incapacitation.” But airlines say regulators are easing those restrictions slightly for vaccine distribution.
UPS said it is producing 24,000 pounds of dry ice each day, and is supplying all of the dry ice used by Operation Warp Speed.
“We will ship a box of 40 pounds of dry ice to all Pfizer dosing locations a day after the vaccine arrives,” UPS said.
The delicate process of keeping the vaccines cold continues once the planes land.

Flying the vaccines

Thousands of flights will be needed to carry distribute the vaccines around the world -— some 8,000, according to the International Air Transport Association.
American Airlines (AAL) says its widebody 787 jetliners can carry about a half-million vaccine doses.
American began in mid-November running test flights between South America and Miami, where it will bring vaccine shipments into the US. It said the test flights “simulate the conditions required for the COVID-19 vaccine to stress test the thermal packaging and operational handling process that will ultimately ensure it remains stable as it moves across the globe.”
The planes used to transport the vaccine will be a mix of cargo jets and passenger planes. In some cases the passenger flights will be cargo-only, but it’s entirely possible that vaccines will be beneath your feet on your next flight.
“The quantities of vaccine or we envisage moving will be enormous, particularly if we get multiple vaccines approved in a short space of time,” said Roger Samways, the vice president of cargo sales at American Airlines. “I think fairly quickly we could reach a situation where actually most of the planes out there, carry vaccines in one shape or form.”
American Airlines has a 25,000 square-foot warehouse in Philadelphia that it uses exclusively for pharmaceutical shipments. The facility is capable of simultaneously charging 50 massive, actively cooled containers, as well as storage bays with four levels of refrigeration ranging from just above freezing to minus-20 degrees Celsius. Each of the refrigerated compartments — large enough to drive several vehicles and pallets into — contain dual cooling systems and a generator in case of power failure.
United Airlines has a major refrigerated storage facility at Dulles airport outside of Washington that handles pharmaceutical and other shipments that need to remain chilled.
While these facilities play a critical role in the chain, the goal is to limit the amount of time shipments spend there.
“Our job is to move things as quickly as possible maintaining the temperature while it’s in our possession,” said Samways.

On the ground

Once the planes land, truckers will be responsible for the vaccines’ final legs. FedEx and UPS will be involved in the ground distribution effort.
UPS (UPS) said it is overseeing the “a highly coordinated set of movements” from its around-the-clock command center in Louisville, Kentucky, tracking the shipments and remotely monitoring the temperature of each package. UPS says its command center software can anticipate delivery interruptions.
The suitcase-sized containers carrying the Pfizer vaccine that will soon leave the factory will be packed with dry ice produced by UPS.
FedEx (FDX) says it has more than 90 cold storage facilities worldwide to aid in the keeping the Pfizer vaccine at its required super-cold transport and storage temperature. FedEx says it currently transports roughly a half million shipments containing dry ice each month.
Vaccines “will be delivered directly to the point of vaccination, if specified by the jurisdiction,” according to a briefing transcript from the White House.
The Federal Motor Carrier Safety Administration, which regulates trucking in the US, said it is suspending so-called hours-of-service rules that regulate how long truckers may drive.
The vaccine containers contain GPS tracking so that the location of the package is known at all times. “These are becoming more and more prominent in the industry so customers can tell exactly where a shipment is,” said Samways.
Once the vaccine is in the hands of state and local officials, the next steps in distribution are up to them.
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The shipping crisis is getting worse. Here’s what that means for holiday shopping

The vast network of ports, container vessels and trucking companies that moves goods around the world is badly tangled, and the cost of shipping is skyrocketing. That’s troubling news for retailers and holiday shoppers.

More than 18 months into the pandemic, the disruption to global supply chains is getting worse, spurring shortages of consumer products and making it more expensive for companies to ship goods where they’re needed.
Unresolved snags, and the emergence of new problems including the Delta variant, mean shoppers are likely to face higher prices and fewer choices this holiday season. Companies such as Adidas (ADDDF), Crocs (CROX) and Hasbro (HAS) are already warning of disruptions as they prepare for the crucial year-end period.
“The pressures on global supply chains have not eased, and we do not expect them to any time soon,” said Bob Biesterfeld, the CEO of C.H. Robinson, one of the world’s largest logistics firms.
The latest obstacle is in China, where a terminal at the Ningbo-Zhoushan Port south of Shanghai has been shut since August 11 after a dock worker tested positive for Covid-19. Major international shipping lines, including Maersk (AMKBY), Hapag-Lloyd (HPGLY) and CMA CGM have adjusted schedules to avoid the port and are warning customers of delays.
Containers are shown at Ningbo-Zhoushan port on August 15, 2021.
The partial closure of the world’s third busiest container port is disrupting other ports in China, stretching supply chains that were already suffering from recent problems at Yantian port, ongoing container shortages, coronavirus-related factory shutdowns in Vietnam and the lingering effects of the Suez Canal blockage in March.
Shipping companies expect the global crunch to continue. That’s massively increasing the cost of moving cargo and could add to the upward pressure on consumer prices.
“We currently expect the market situation only to ease in the first quarter of 2022 at the earliest,” Hapag-Lloyd chief executive Rolf Habben Jansen said in a recent statement.
The cost of shipping goods from China to North America and Europe has continued to climb over the past few months, following a spike earlier in the year, according to data from London-based Drewry Shipping.
The company’s World Container Index shows that the composite cost of shipping a 40-foot container on eight major East-West routes hit $9,613 in the week to August 19, up 360% from a year ago.
The biggest price jump was along the route from Shanghai to Rotterdam in the Netherlands, with the cost of a 40-foot container soaring 659% to $13,698. Container shipping prices on routes from Shanghai to Los Angeles and New York have also jumped.
“The current historically high freight rates are caused by the fact that there is unmet demand,” Soren Skou, CEO of container shipping giant Maersk, said on an earnings call this month. “There’s simply not enough capacity,” he added.

Port congestion

The terminal shutdown in Ningbo will add to bottlenecks arising from the closure in June of Yantian, a port about 50 miles north of Hong Kong, after coronavirus infections were detected among dock workers.
While a partial reopening of Yantian took only a few days, a return to normal services took nearly a month to achieve, according to S&P Global Market Intelligence Panjiva, as the congestion spilled over to other ports.
Cargo containers stacked at Yantian port on June 22 in Shenzhen, China.
That spells trouble for retailers and consumer goods companies trying to restock inventories heading into the crucial year-end holiday shopping season. “The closure at Ningbo is now particularly sensitive as it may hold up exports for the peak season of deliveries into the US and Europe which typically arrive from September through November,” S&P Global Panjiva said in a research note on August 12.
Drewry Shipping said Friday that congestion at nearby ports Shanghai and Hong Kong is “spiking” and spreading elsewhere in Asia, as well as in Europe and North America, “particularly the West coast” of the United States.
Some 36 container ships are anchored off the adjacent ports of Los Angeles and Long Beach, according to a report Thursday from the Marine Exchange of Southern California.
That’s the highest number since February, when 40 container ships were waiting to enter. Ordinarily, there would be just one or zero container ships at anchor, according to the Marine Exchange.
The congestion in California is starting to spread to “pretty much every port in the [United States],” according to Biesterfeld of C.H. Robinson. “The chances of your vessel arriving on time are about 40%, when it was 80% this time last year,” he told CNN Business.
Container ships sit in the Pacific Ocean outside the Port of Long Beach, California on August 11, 2021.
The backlog at ports will have a ripple effect on jammed warehouses and stretched road and rail capacity. Logistics networks have been running at maximum capacity for months, thanks to stimulus-fueled demand led by US consumers and a pickup in manufacturing. Truck driver shortages in the United States and United Kingdom have only exacerbated supply disruptions.
US imports in March and May exceeded levels seen in October 2020, typically the peak of the shipping season, said Eric Oak, supply chain research analyst at S&P Global Panjiva.
“This means that logistics facilities have been running flat out for most of the summer,” he added.
It’s not just ports that are under pressure. Air terminals are receiving increasingly large amounts of freight as companies turn to alternative methods to transport their goods. At some of the larger US airports such as Chicago, there are delays of up to two weeks to claim cargo, according to Biesterfeld.
Efforts to contain Covid-19 outbreaks have recently disrupted traffic at Shanghai Pudong and Nanjing airports in China.

Retailers brace for impact

“Name almost anything and it seems like there’s a shortage of it somewhere,” Biesterfeld added. “Retailers are struggling to replenish inventory as fast as they’re selling, let alone prepare for holiday demand.”
Supply chains were discussed on nearly two thirds of some 7,000 company earnings calls globally in July, up from 59% in the same month last year, according to an analysis by S&P Global Panjiva.
Consumer goods producers are taking drastic steps to meet demand — such as changing where products are made and moving them by plane instead of boat — but companies such as shoemaker Steve Madden (SHOO) say they’re already missing out on sales because they simply don’t have enough goods.
The company has moved half the production of its women’s range to Mexico and Brazil from China in an attempt to shorten delivery times.
Retailers plead with Biden to fix port congestion that has upended supply chains
“In terms of the supply chain … we could talk about this all day. There are challenges throughout the globe,” CEO Edward Rosenfeld said on an earnings call last month. “There is port congestion, both in the US and China. There are Covid outbreaks at factories. There are challenges getting containers. We could go on and on.”
It’s one of several major apparel brands hit by factory shutdowns in Vietnam over the past month. Data from S&P Global Panjiva shows that nearly 40% of the volume of goods imported into the United States by sea over the 12 months to July came from the Southeast Asian country.
Adidas CEO Kasper Rorsted said the sportswear company will be unable to fully meet the “strong demand” for its products in the second half of the year due to the shutdowns, despite switching production to other regions.
Supply chain difficulties have been “leading [to] significant delays and additional logistics costs, particularly as we have been making more use of airfreight,” he said on a recent earnings call.
Andrew Rees, the CEO of Crocs, said that transit times from Asia to most of the company’s leading markets are approximately double what they were historically. “That’s been the case for some time, and we’re expecting [to] live with that,” he told investors last month.
“In terms of the supply chain … we could talk about this all day. There are challenges throughout the globe,” CEO Edward Rosenfeld said on an earnings call last month. “There is port congestion, both in the US and China. There are Covid outbreaks at factories. There are challenges getting containers. We could go on and on.”
It’s one of several major apparel brands hit by factory shutdowns in Vietnam over the past month. Data from S&P Global Panjiva shows that nearly 40% of the volume of goods imported into the United States by sea over the 12 months to July came from the Southeast Asian country.
Adidas CEO Kasper Rorsted said the sportswear company will be unable to fully meet the “strong demand” for its products in the second half of the year due to the shutdowns, despite switching production to other regions.
Supply chain difficulties have been “leading [to] significant delays and additional logistics costs, particularly as we have been making more use of airfreight,” he said on a recent earnings call.
Andrew Rees, the CEO of Crocs, said that transit times from Asia to most of the company’s leading markets are approximately double what they were historically. “That’s been the case for some time, and we’re expecting [to] live with that,” he told investors last month.
A huge backlog at China's ports could spoil your holiday shopping this yearTo ensure product availability during the holiday season, Hasbro, which makes Monopoly and My Little Pony, said it is increasing the number of ocean carriers it works with, utilizing more ports to expedite deliveries and sourcing more products earlier from multiple countries.
For consumers, the supply chain crunch is likely to mean higher prices. Hasbro, for example, is increasing prices to offset rising freight and commodities costs. The company is projecting that its ocean freight expenses will be on average 4 four times higher this year than last, according to chief financial officer Deborah Thomas.
Shoppers should also brace for longer than normal delivery times and may need to have several different gift ideas up their sleeves.
“As we’ve been forecasting for months, shoppers are going to see some bare shelves at the holidays,” said Biesterfeld. “And if you buy most of your presents online, get it done early. Delivery time may be four to six weeks.”
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Biden announced new measures today to help ease the supply chain crisis. Here are key things to know.

Shipping containers and container ships are seen at the ports of Long Beach and Los Angeles on September 20.

The US government is stepping up its efforts to relieve the supply chain nightmare that has led to shortages of some goods, higher prices for consumers and now threatens to slow the economic recovery.

Around the world, ports are congested as a result of the rapid rebound in demand for commodities and goods as much of the global economy has recovered from the pandemic. Shipping costs have soared, and companies wanting to move goods around are struggling because there just aren’t enough ships or containers available. All the while prices are going up for consumers.

President Biden outlined the steps his administration will be taking alongside some of the country’s biggest ports and retailers to help alleviate the supply chain bottlenecks.

Here are some key things to know about Biden’s announcements today:

  • Longer port hours: Biden announced the Port of Los Angeles will move to 24/7 service, bringing it into line with operations at the Port of Long Beach, which is already working on a 24/7 schedule. Those two ports handle 40% of container traffic in the US. “Today’s announcement has the potential to be a game changer,” Biden said in remarks at the White House. He said the additional port hours will increase the time spent unloading container ships by 60 hours a week, and will represent a doubling of hours the ports of Los Angeles and the neighboring Port of Long Beach were operating earlier this year.
  • The private sector is also taking action: Biden met with senior officials and stakeholders to discuss collective efforts to address global transportation bottlenecks and then deliver remarks on Wednesday. Port operators, truckers’ associations, labor unions and executives from Walmart, FedEx, UPS, and Target attended the talks. He said that Walmart, the nation’s largest retailer, had committed to a 50% increase in moving goods during off-peak hours. The President said FedEx and UPS will also increase their overnight operations. “All of these goods won’t move by themselves,” Biden said. “For the positive impact to be felt all across the country and by all of you at home, we need major retailers who ordered the goods and the freight movers who take the goods from the ships to factories and stores to step up as well.”
  • Efforts to boost the number of truck drivers: Officials also said the federal government is working with state Departments of Motor Vehicles to help increase the issuance of commercial drivers licenses in an effort to boost the number of truck drivers in the country. They added that the White House hopes to see the trucking and rail freight industries expand hours as well. A shortage of truck drivers has added to the supply chain constraints, making the delivery of goods to consumers even more costly and slow.
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The workers who keep global supply chains moving are warning of a ‘system collapse’

Seafarers, truck drivers and airline workers have endured quarantines, travel restrictions and complex Covid-19 vaccination and testing requirements to keep stretched supply chains moving during the pandemic.

But many are now reaching their breaking point, posing yet another threat to the badly tangled network of ports, container vessels and trucking companies that moves goods around the world.
In an open letter Wednesday to heads of state attending the United Nations General Assembly, the International Chamber of Shipping (ICS) and other industry groups warned of a “global transport system collapse” if governments do not restore freedom of movement to transport workers and give them priority to receive vaccines recognized by the World Health Organization.
“Global supply chains are beginning to buckle as two years’ worth of strain on transport workers take their toll,” the groups wrote. The letter has also been signed by the International Air Transport Association (IATA), the International Road Transport Union (IRU) and the International Transport Workers’ Federation (ITF). Together they represent 65 million transport workers globally.
Seafarers on board a Mitsui O.S.K Lines vessel share a message of safety.
“All transport sectors are also seeing a shortage of workers, and expect more to leave as a result of the poor treatment millions have faced during the pandemic, putting the supply chain under greater threat,” it added.
Guy Platten, secretary general of the ICS, said that worker shortages are likely to worsen towards the end of the year because seafarers may not want to commit to new contracts and risk not making it home for Christmas given port shutdowns and constant changes to travel restrictions.

Fragile supply chains

That will heap pressure on stretched supply chains and could, for example, worsen current challenges with food and fuel supply in the United Kingdom.
“The global supply chain is very fragile and depends as much on a seafarer [from the Philippines] as it does on a truck driver to deliver goods,” added Stephen Cotton, ITF secretary general. “The time has come for heads of government to respond to these workers’ needs.”

When Karynn Marchal and her crew were told that they wouldn’t be allowed to go on shore upon docking in Hokkaido, Japan it was a big hit to morale.
“None of us knew how long it would go on for,” the 28-year old chief officer of a car-carrying ship told CNN Business.
Container ships anchored by the ports of Long Beach and Los Angeles as they wait to offload on September 20, 2021.
That was more than 18 months ago. Marchal — and hundreds of thousands of seafarers like her — have not been permitted shore leave since.
After weeks on board a ship, a couple of hours on shore provides much needed respite. But seafarers can only leave a vessel in order to travel elsewhere, usually to return home. Marchal considers herself “one of the luckier ones,” because she has at least been able to make it home to the United States.
“There are people who have been stuck at sea for over a year,” she said.
Karynn Marchal, chief officer, pictured on board her vessel in January 2021 in the Panama Canal.
Early in the pandemic, many seafarersagreed to extend their contracts by several months to keep supplies of food, fuel, medicine and other consumer goods flowing around the world. The grounding of planes and border closures had made it almost impossible to move workers from one part of the world to another and to swap crews.
At the peak of the crisis in 2020, 400,000 seafarers were unable to leave their ships for routine changeovers, some working for as long as 18 monthsbeyond the end of their initial contracts, according to the ICS.

Multiple vaccinations, repeated testing

While these numbers have improved, crew changes remain a major challenge. Some travel restrictions were reimposed as a result of the coronavirus Delta variant and transport workers continue to face a myriad of vaccine and testing requirements just to do their jobs. Often these are imposed at a moment’s notice, said Platten.Trucks parked on the runway at Manston Airport in England waiting to cross the English Channel on December 22, 2020.
Inconsistent requirements mean that some seafarers have been vaccinated multiple times because some countries have approved only certain vaccines, according to Platten.
He knows of at least one seafarer who has received six vaccine doses, or three two-dose regimens. “It’s an absolute nightmare. I can’t understand why we don’t have some sort of global standard,” he told CNN Business.
Meanwhile, the unequal distribution of vaccines globally means that only about 25% to 30% of seafarers, many of who are from India and the Philippines, are fully vaccinated, according to Platten.
Coronavirus testing is also a challenge. In February, Germany unilaterally introduced mandatory PCR testing with no exemption for truck drivers, leading neighboring countries including Italy to impose similar restrictions to avoid having thousands of drivers stranded in their own territory.
These measures affected thousands of truck drivers, particularly on the Brenner Pass between Italy and Austria, forcing them to queue for days in sub-zero temperatures with no food or medical facilities. The EU Digital Covid Certificate has since eased some of the pressure, but bottlenecks remain.
“Drivers have faced hundreds of border issues and blockades through the pandemic,” said Umberto de Pretto, IRU secretary general. “Truck drivers, and the citizens and businesses that depend on the goods they move, pay a heavy price for misguided Covid restrictions that do not exempt transport workers,” he added.Truck drivers line up to show testing documentation on the Brenner Pass on February 16.
Marchal, the chief officer, and her crew had to do 10 Covid tests in seven days before they were allowed to enter the shipyard in Singapore for repairs last month. Maintenance was delayed by a week following a coronavirus outbreak at the port and the vessel is not expected to leave before mid October. In the meantime, the crew must remain on board the ship.
Compulsory quarantines when disembarking and on arrival in their home countries can mean that pilots and seafarers spend a month of their vacation time stuck in a hotel room before they’re able to see their families.
Seafarers “run the shipping industry,” yet they have not been given the priority of frontline workers, said Shaailesh Sukte, the captain of Seaspan Amazon, a container ship. “If you want the world to [keep] moving, you need to relax travel restrictions,” he told CNN Business.
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The global supply chain nightmare is about to get worse

Computer chip shortages. Epic port congestion. And a serious lack of truck drivers. The world’s delicate supply chains are under extreme stress.

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German Logistics Manager of the Year

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VIP Visit from Moscow

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Looking Forward to the Next Million!

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Employee Satisfaction Survey 2019

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Second Distribution Center in Portugal

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