Meteorologists may call Sept. 1 the start of fall, but there are plenty of places in the country that are still plenty hot enough to ruin a temperature-controlled trailer full of freight.

Scott Cornell, vice president of transportation for Travelers Insurance, has worked with many clients on insurance claims and losses related to cargo spoilage or rejection over the years. In doing so, he’s gained some insights into what trucking fleets can do to help keep this from happening. 

In an email interview, Cornell shared some of those insights.

HDT: What are the most common causes of temperature-controlled cargo spoilage or rejection?

Cornell: Spoilage, also called temperature abuse, often occurs when reefer units break down, which can be the result of a mechanical failure or lack of proper maintenance. 

Sometimes drivers inadvertently set the wrong temperature, or the unit could malfunction or run out of fuel. 

Even if the unit shows the correct temperature, the goods might not be properly cooled if the trailer wasn't pre-cooled before loading, if it's loaded incorrectly, or due to travel conditions and timing. Experienced drivers understand the importance of pre-cooling to prevent temperature swings.

Additionally, environmental factors, such as driving through extreme heat, can test the unit's ability to maintain cool temperatures, adding another layer of complexity.

Q: What are some things that fleets or drivers often overlook in protecting reefer loads?

A: Establishing a solid process for setting temperatures is essential. While dispatch can often monitor these modern units and set temperatures remotely, drivers need to double-check. Communication between dispatch and drivers is crucial to ensure that everything is set correctly. 

It's also important to have a plan for breakdowns, including knowing where repair facilities and cold storage options are along your routes.

Preventative maintenance is also crucial, even when freight is moving quickly. 

These steps help minimize the risk of spoilage and ensure that operations run smoothly.

Q: What role do delays play in temperature-controlled freight claims?

A: Delays can significantly worsen temperature issues, particularly when cargo is exposed to constant extreme temperatures, such as those in Arizona, which can put a strain on reefer units. 

Mismanagement during loading and unloading can also lead to temperature fluctuations. For instance, if a reefer backs into a dock and opens its doors but has to wait more than 10 or 20 minutes to unload, significant temperature variations can result. 

While delays are a concern, environmental factors and procedural errors are often the primary culprits in losses. Having contingency plans in place is crucial in addressing these challenges and minimizing their impact on cargo integrity.

Q: Are certain commodities more claim-prone or subject to tighter expectations?

A: Absolutely. Commodities such as frozen seafood, meat, chicken, and pharmaceuticals have tighter temperature ranges and can be more prone to claims. These items require careful handling and precise temperature control to avoid spoilage. 

The stakes are high with these products, and maintaining their quality is paramount to preventing losses and ensuring customer satisfaction.

Q: How often do mechanical failures of refrigeration units cause problems versus driver or procedural errors?

A: They are equally significant in causing problems. Both require attention to minimize losses, and it's important to have systems in place to catch issues before they become major problems. 

Regular maintenance of the reefer unit and driver training can help mitigate these risks and ensure that operations run smoothly.

Q: Have predictive maintenance or analytics helped fleets avoid major losses?

A: Definitely! Newer units have technological advances that allow for equipment analytics. Fleets can make remote adjustments and receive automatic alerts if something starts to go wrong. These systems help maintain consistent temperatures across the load, which is crucial for avoiding spoilage. 

By leveraging technology, fleets can proactively address potential issues and minimize the risk of losses.

Q: How are fleets using telematics and temperature monitoring technologies?

A: Fleets are embracing telematics and temperature monitoring to safeguard their cargo.

These technologies provide real-time data and alerts, helping fleets manage temperature-sensitive freight more effectively. Staying on top of things and ensuring smooth operations is crucial. By utilizing these tools, fleets can enhance their ability to maintain cargo integrity and reduce the likelihood of spoilage. 

However, I always caution that technology needs to be something that enhances good processes and procedures around the care and movement of these temperature-controlled loads.

Q: Have you seen any shifts in claims handling due to telematics and sensor data availability?

A: While I can't delve deeply into claims specifics, the availability of temperature data from smart trailers is definitely considered in claim assessments. 

The industry is witnessing more temperature-controlled losses, likely due in some part to increased data availability and the fast-paced supply chain pushing equipment beyond its limits. This data helps insurers better understand the circumstances surrounding claims and make more informed decisions.

Q: What steps should a fleet take immediately after a reefer failure or in-transit temperature event?

A: First, evaluate your processes, preventative maintenance, driver training, loading procedures and pre-cooling practices.

Then, coordinate with drivers to find nearby repair shops or cold storage facilities to mitigate losses. Having a plan and being ready to act quickly is essential. By being prepared, fleets can minimize the impact of unexpected events and protect their cargo.

Q: What are the insurance industry’s expectations around data sharing from fleets operating refrigerated units?

A. Our risk control department, with dedicated transportation experts, helps evaluate processes and equipment care. We work with carriers to ensure that they meet underwriting expectations. Ensuring that everything is in place to minimize risks is important. 

By sharing data, fleets can demonstrate their commitment to maintaining high standards and reducing the likelihood of claims. 

As important as gathering the data is how an account uses that data. Do they adjust their process or use the data to train their front-line staff on what they’re seeing?

Q: What advice would you give fleet managers to reduce the risk of costly temperature-related claims?

A: Implement strong preventative maintenance programs, ensure accurate temperature settings, and maintain open communication between dispatch and drivers. 

Regularly review and update processes to adapt to technological advancements. 

Redundancy is key. What I mean is, as an example, we’ve all seen a movie where maybe a pilot is talking to a control tower and they repeat themselves to one another. They run down a checklist to be sure everything is ready before takeoff. It can be that simple, and if it catches a mistake even one time, that might be a valuable load saved from a loss. 

Being proactive and keeping everything running smoothly is key. By taking these steps, fleet managers can reduce the risk of claims and enhance their operations.

Q: What does the future look like for insuring high-value, temperature-sensitive freight?

A: The industry is likely to see stricter risk assessments and more technology-driven compliance. Insurers will ask more questions about processes, procedures, and training, looking for advancements and adaptations to improve risk profiles. 

Staying ahead of the curve and ensuring that everything is in place to prevent losses is vital. By embracing innovation, the industry can better protect high-value freight and meet evolving customer expectations.