Case Scenario.

A problem faced by a cold-chain shipper is handling and moving pharmaceutical cold goods, while keeping the cost of freight low in the pandemic season, where haulage contractors are moving very sluggish.

A client (Patanol) of a third-party logistics (3PL) provider (Omega Mix), has several pharmaceutical products to ship. Not all of the product is incredibly delicate. A large amount of the product is moving from Miami, Florida, to a shipping port in Atlanta, Georgia, which takes about six (6) hours by road.

Omega Mix must organize the shipments on pallets numbering 100, 3'-6" wide x 4'-0" long x 3'-6" high shank wrap. The pallet can double stock.

Before, Patanol usually handled the shipment in-house but with the pandemic and the overbooking, they tried the 3PL approach. Their strategy was to use five (5), twenty-foot containers to move the 100 pallets. They usually coordinate the shipment through a freight forwarder and the price wasn't low at all. With the 3PL in mind, the cargo will move much smoother and the cost will be far less.

The 3PL provider would know how to move the cargoes during this time of the year and with the pandemic. The 3PL provider had negotiated a $5 back haulage cost per mile.

The Patanol pharmaceutical product is relatively low value, however, the equipment needed is not. It requires refrigerated or insulated containers and they needed to haul 20 pallets per container. It will need to be handled by one or two lorry drivers. If more lorries are brought into the market, the 3PL provider could boost its capacity but lose revenue.

Questions

1. Explain what will be the best mode of transportation to move the cargo from Miami to Atlanta.