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+100K FRT GLOBAL CEMENT TRANSPORT

+100K FRT GLOBAL CEMENT TRANSPORT

multimodal cement plant delivery - modular cement plant parts being transported via multimodal logistics solution

UTC Handles +100K frt Multimodal Cement Plant Delivery

UTC's Global Cement Division managed the transport of over 100,000 freight tons of equipment for one of the largest cement plants in the USA.

Multiple modalities were used for hundreds of shipments, some with pieces over 25', arriving from China, India, Germany, Italy, Romania, Turkey, Egypt, and Mexico.

freight tons
hopper barges
truckloads

With equipment heights over 25ft, the main transportation challenge was shipping major components in the largest configuration possible.

Planning began in 2019 with detailed route and feasibility studies, risk assessments, and evaluation of discharge ports.

Transporting equipment to the job site, located deep in the US Heartland, required intricate planning and creative solutions. To ensure all parties stayed informed in real-time, UTC created a customized portal for the client where information on the project was available. This enabled teams worldwide to address challenges and implement contingency plans quickly. Constant communication with a myriad of local authorities during last-mile transport, including utilities and cable companies, ensured the success of this complex project.

Out-of-gauge ocean freight to the Port of New Orleans via 12 charter vessels

The largest pieces originated in China, where they were barged to the Ports of Shanghai and Tianjin and loaded onto 12 charter vessels headed for the Port of New Orleans. Shipping the largest parts from China proved to be complex due to COVID lockdowns and unexpected last-minute restrictions. Port congestion, labor shortages, lack of raw materials, and quarantine requirements for cargo originating in active COVID regions posed challenges. UTC was able to call on existing relationships with carriers to secure space, contain vessel detention costs, and postpone shipment dates when cargo was not available for loading.

5 UTC Handles 100K+ frt Multimodal Cement Plant Delivery 5

The next challenge: critical cargo urgently needed

Critical pieces of cargo became available in Chennai, India, in late 2021 and were urgently needed to meet the construction schedule. UTC’s team in India immediately began evaluating alternative options for time- and cost-effective transport, taking into account extremely tight capacity and heavy monsoon rains. UTC determined the best strategy would be to truck the equipment to Mumbai, where it would be loaded onto four ro-ro vessels.

Other major OOG cargo originated in Romania, Italy, Turkey, and Germany and were shipped to the US via breakbulk vessels, with some smaller parts and accessories shipped via airfreight. Additional parts and accessories out of Mexico were transported overland via 150 truckloads to the site in Mitchell. UTC handled customs at the border.

Barge transport up the Mississippi River

Once the oversized cargo was discharged in the US, it was loaded onto 37 chartered hopper barges for transport to the Port of Jeffersonville. UTC scouted multiple locations to determine the final destination port, considering supply chain delays, port congestion, adverse weather events, and more. Port of Jeffersonville was chosen because of its proximity to the job site and ease of entering highways with oversized equipment.

Deliveries of large-scale projects like this are usually carefully sequenced so equipment and parts arrive in the order they are installed. However, with COVID lockdowns, supplier delays, and shipping backlogs causing significant uncertainty in production and delivery schedules, UTC took delivery of parts as soon as they were available, storing them at the port until needed at the plant.

2 UTC Loading FINAL_Moment 4

Last-mile delivery: Interfacing with local utilities, DOT, & wildlife authorities

UTC consulted with local utilities, DOT, and wildlife authorities to ensure the last-mile transport of hundreds of oversized pieces spanning 24 months would not interfere with the local community and surrounding habitats.

Before transporting any equipment, UTC engaged with Indiana DOT (INDOT) to analyze last-mile route options.

Once a 71.7-mile route was established, UTC entered into a $4M bond with INDOT, allowing site revisions and travel route modifications to accommodate oversized cargo. UTC representatives and DOT contractors traveled the entire route, measuring and identifying all communications and electric lines and overhanging obstacles. Working with additional contractors, utility wires and poles, traffic lights, highway signs, and digital messaging boards were temporarily lifted or removed during transports. Most larger utilities authorized Kenco to raise their wires, but several REMCs required their engineers to be on-site to ensure the safety of their lines. Several major telecoms and electric cables leading up to Chicago were along the route, meaning utmost care had to be taken to avoid widespread disruptions. With careful planning and precise attention to detail, all oversized pieces of equipment were moved without incident.

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INDOT required that any cargo over 18’ tall must be transported overnight.

The largest pieces came in steel crating to facilitate loading and provide protection. However, the crating made round, tapered pieces into otherwise square cargo, which would need significantly more overhead clearance. By cutting and removing top portions of the crating, several pieces were transported without stretching utility lines or removing overhanging obstacles. These were trucked using specialized perimetral trailers, which provided additional height clearance due to their very low base. They moved in convoys of 2-3 loads to further minimize movement of utility lines and obstacles. Multiple packages were so wide, the roads so narrow, and the placement of telephone poles close to the street that there were just inches of clearance at certain times.

3 UTC Handles 100K+ Freight Ton Multimodal Cement Plant Expansion Delivery Image 7

Last-mile transportation of these oversized pieces endured the depths of winter through ice storms and snow, through spring rains, and into the hot summer, or bat season.

Since the Indiana bat is an endangered species and an integral part of the local ecosystem, UTC interfaced with local wildlife authorities to ensure that continuous overnight transports of oversized equipment would not disrupt the population, which make their home in the hardwood trees lining the route.

UTC’s strength is adapting to the client’s needs, which changed as the project progressed. The pandemic, lockdowns, port closures, reduced labor pools, escalating shipping costs, and vessel availability were all contributing factors. Contingency planning for these types of disruptions is fundamental in executing a project of this magnitude. Fortunately for UTC’s Cement Division, their skill, years of experience, and advanced planning allowed the freight to move uninterrupted. The job was well-executed, safely, and on time.

7 UTC Handles 100K+ Freight Ton Multimodal Cement Plant Expansion Delivery Image 8

UTC's logistics teams have specialized knowledge of your equipment, allowing us to provide the most innovative and cost-saving logistics solutions.

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+100K FRT GLOBAL CEMENT TRANSPORT

UTC Handles +100K frt Multimodal Cement Plant Delivery UTC’s Global Cement Division managed the transport of over 100,000 freight tons of equipment for one of the largest cement plants in the USA. Multiple modalities were used for hundreds of shipments, some with pieces over 25′, arriving from China, India, Germany, Italy, Romania, Turkey, Egypt, and Mexico. 100,000 freight tons 37 hopper barges 150 truckloads With equipment heights over 25ft, the main transportation challenge was shipping major components in the largest configuration possible. Planning began in 2019 with detailed route and feasibility studies, risk assessments, and evaluation of discharge ports. Transporting…

Industry Update Aug 2022

Inflation, impending strikes, military drills and droughts are making it more difficult to navigate the international supply chain. Here’s what you need to know today.

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With international and local expertise, diligent risk assessment, and multi-modal capabilities, our teams will work with you to keep your cargo moving. Contact UTC today to develop a transportation strategy that works best for you.

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With international and local expertise, diligent risk assessment, and multi-modal capabilities, our teams will work with you to keep your cargo moving. Contact UTC today to develop a transportation strategy that works best for you.

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UTC Overseas Industry Update August 2022 (white UTC logo and text over semi-transparent dark blue overlay). Background image: pink & purple sky in background, four men in reflective vests are on the back of a ship. two men stand aside while two men are adjusting a piece of equipment being loaded onto ship.

August 2022 Industry Update

Inflation, strikes, military drills and droughts are making it more difficult to navigate the international supply chain.

Here's what you need to know today.

    • Escalating strikes in the UK among transportation workers; union calls for 8-day strike at Felixstowe
    • China’s military drills disrupt trade in Taiwan Strait
    • US efforts to reduce transportation costs and delays
    • Critically low water levels exacerbate European energy crisis & transportation woes

The summer of discontent in the UK

Labor negotiations in the UK remain tense, with disputes over pay and inflation playing a key role.

    • Rail workers walked off their jobs on several occasions, airports and airlines are experiencing labor shortages resulting in canceled flights and delays, and now, the union at Felixstowe, the UK's largest container port, has called for an eight-day strike beginning August 21. (AJOT)
    • Talks broke down between Unite Union and Hutchison Ports UK, with each side blaming the other for the stalemate. The dispute is over pay. The initial offer presented to the union was for a 7% increase, which the members would not agree to since inflation in the country is 11.9%. The port upped its offer, but it still was not enough to satisfy the union, which is threatening a full shutdown. (The Loadstar)
    • Felixstowe is a key hub, accounting for half the UK's container trade. A strike will have an impact on international maritime trade beyond the UK. Liverpool is viewed as an alternate port if the strike moves forward, and the union at that port will vote next week on possible strike action if their pay dispute is not settled. (JOC)

China's military drills disrupt the Taiwan Strait

    • Shipping in the Taiwan Strait is returning to normal, but risks remain as China is still carrying out military exercises. The Taiwan Strait is a key route for supply chains and commodities and is one of the world's busiest waterways. Bloomberg data shows close to half the global container fleet transiting through the Strait this year. (Bloomberg)
    • The military drills were in reaction to US House Speaker Nancy Pelosi's visit to the region last week. Ships were warned to avoid certain areas by local branches of China's maritime safety administration. Some carriers rerouted their vessels, taking longer routes to reach Taiwan, while others navigated around the drill zones. Exercises were slated to be done by Sunday, but were still ongoing until Wednesday, Aug 10. They are now completed, but China will conduct “regular patrols” moving forward. (Reuters)
    • China is also conducting drills in other areas along the coast, but the Taiwan Strait is an important shipping lane that will have a strong impact on global supply chains. (AJOT)

US making efforts to reduce transportation costs & delays

    • The Inflation Reduction Act provides promising investments for offshore wind development, port infrastructure.
        • The legislation would push nearly $3.5 trillion into new American energy supply infrastructure over next the decade, supporting the ambitious goal to deploy 30 gigawatts of offshore wind power by 2030 to reduce the country’s carbon emissions. (MarineLog)
        • Billions of dollars are slated to be invested in domestic clean energy manufacturing and shipbuilding; supporting domestic production of offshore oil and natural gas.
        • Grants and rebates will be available to ports to purchase and install zero-emission cargo-handling equipment, providing that the equipment is not used to automate container terminals. Automation is a major factor in the current negotiations between the ILWU and USWC marine terminal operators. (FreightWaves)
    • Diesel prices are finally dropping – below $5 for the first time since March. (FreightWaves)
    • FMC Chairman says shipping lines should compensate shippers, truckers when forced to store containers due to port congestion.
        • In an effort to mitigate detention and demurrage costs as supply chains shift to avoid port congestion, delays, and more, the FMC is investigating reports of carriers charging per diem container charges, despite shippers and truckers being unable to return empty containers due to terminal congestion. (Splash 24/7)
        • Port of NY/NJ will implement a container imbalance fee for ocean carriers as part of its effort to handle record cargo volumes, effective September 1. The fee will target empty containers that have been stored at the port for long periods. (FreightWaves)

Low water levels exacerbate European transportation woes and energy crisis

Critically low levels throughout Europe’s waterways are impacting the continents’ trade and energy production.

    • Rhine water levels at key chokepoint, Kaub, are forecast to drop below 40cm (just under 16 inches) early on August 12. At this level, most barges hauling goods like diesel and coal are effectively unable to transit the river. Levels are set to continue dropping – another 3cm the following day, to 37cm.
        • Some shallow-water barges will still be able to navigate the Rhine at Kaub. With chronic rail congestion and more than 110 trucks needed to carry the same load as the average barge coupled with rising gas prices, switching modes of transportation can be complicated.
        • Many companies rely on the river to supply major industrial plants with fuels and raw materials. Shipments have already been hampered for weeks, with surcharges and load limits.
        • Further downriver, steelmaker Thyssenkrupp is closely monitoring water levels at Duisberg, near Cologne. The depth there is currently 173cm, with 150cm seen as the level that makes it uneconomical to transport heavier raw materials like coking coal and iron ore. (Bloomberg)
    • France and Italy are facing their own energy crises. In France, the Rhone and Garonne are too warm to effectively cool nuclear reactors. The crunch has led to commercial and residential water restrictions and limited the 52M tonnes of cargo that annually transit French waterways. In Italy, severe drought has caused the Po River to fall to its lowest level in 70 years, impacting much of the country’s hydroelectric power generation and agricultural production.
    • Water levels on the Danube, connecting central Europe with the Black Sea, are also dropping, hampering grain and other trade. (Bloomberg)

With international and local expertise, diligent risk assessment, and multi-modal capability, our teams will work with you to keep your cargo moving. Contact UTC today to develop a transportation strategy that works best for you.

UTC's experts are dedicated to providing you with the most innovative and cost-saving logistics solutions.

Read More