The Relationship Challenge: Converging Trends and

the Resultant Freight Damage Potential

June 17th, 2015

Packaging Technology & Securement

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• Offer a view of packaging evolution and the

growing gap that may lead to increased freight

damage

Objective

Overview

• Rail Freight Trends and Considerations

• Packaging Trends

• Transit Packaging System

• Convergence of these Trends

• A Path to Damage Prevention

Main Points

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Rail Freight Trends

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Rail Considerations

Shock,

Vibration and

Compression

Hazards Response of

the Hazards

with contents

are not

braced

Temperature

& Humidity

Hazards

Are retailers and brand owners

considering the implications of rail?

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Packaging Trends

Light Weighting

Cost Avoidance Sustainability Retail Ready

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Packaging Trends

Population and Municipal Solid Waste (MSW)

U.S. EPA and Census Bureau Statistics

1994 2012 Change

U.S. Population (MM) 261.8 313.9 19.9%

Households (MM) 97.1 121.1 24.7%

Total MSW (mm tons) 209.1 250.9 20.0%

Containers & Packaging

MSW Generated (mm tons) 75.0 75.2 0.3%

% of Total MSW 35.9% 29.9%

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Packaging Trends

Source: IGD’s International SRP Report, May 2006

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The “Just Right” Package

Transit Packaging System

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Transit Packaging System

Shipping Container

(often forgotten)

Unit Load Configuration

Tertiary Packaging

Secondary Packaging

Primary Packaging

Product

Consumer Product Categories

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Convergence of Trends

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Convergence of Trends

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• All parties want to ship more by rail (goal)

• There is fear of damage shipping by rail (road block)

• There is a path to the goal (predicting the effects)

Conclusions

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Integration and communication

Path to Damage Prevention

• Packaging Community: Increased

understanding that the cargo

container is part of the packaging

system

• Shipping Community: Support the

education of the packaging

community

• Logistics Community: Bring the

two parties together

Smithers Pira 6539 Westland Way, Suite 24

Lansing, Michigan 48917

USA

www.smitherspira.com

Thank you.