Temperature-Controlled Supply Chain: The IATA Label - Will it stick? Part II: The Path Forward

What is the path forward?

A label alone will not guarantee trained personnel to handle the cargo or is it a substitute for a program that supports GMP and GDP practices. Training programs and records, airport audits, facility inspections, a single SOP (among shipper, freight forwarders and airlines) and other tools will ensure the cargo is managed properly so collaboration is critical. Anyone of the supply chain links can take the lead to engage the others. It is not easy to break the silos and be in someone else's shoes. I recommend the healthcare logistics person to lead the effort because he or she is more familiar with the product, its storage and distribution temperatures and have tools to work with such as SOP, audits, service level, training, etc.

I recommend you work with your consignee, freight forwarder and airline(s) to determine the best set up. In general, AWB, Booking, Label and SOP must be aligned to the requirements but communication is fundamental before assuming that matching the storage temperature requirements is a bullet-proof solution. Collaborating with your consignee or affiliates (Regulatory, Quality, Logistics, etc) will provide the feedback to define the best way to handle the cargo downstream.

In my opinion, there are many excellent airline temperature-controlled programs available and airlines that have these programs in place are doing a great job in compiling the requirements of the biotech and pharmaceutical industry. These airline programs are designed to prevent mishandling by setting up SOP’s, training personnel, auditing and upgrading facilities. I believe that is why the IATA label has had a very slow or no implementation by the IATA airlines members. Unfortunately, most of the upgrading is taking place in EU and US airports but I think the bigger needs are at destination (downstream), when the shipping container performance is compromised by delays at the customs and sanitary inspections. Airlines are working in difficult conditions with fuel prices rising and cargo demand contracting so they are very conscious that what drives the service level is the price you pay for booking your cargo, not the IATA label, or the labels your warehouse or freight forwarder attached to the cargo; not even on what's written in the AWB (Air Waybill). Airlines will code your cargo in their system according to the service level you paid and most airlines already have time and temperature-sensitive labels and training associated to the service level you paid. Simply… you get what you pay for.

There are mixed comments posted in many websites or groups stating that the risk for delay or even declining to move the cargo is higher unless the label is adopted. In today's business environment where the air cargo capacity is shrinking, most airlines are hungry for business and have their own time and temperature labels (temperature controlled programs) so I expect the airlines to keep showing flexibility to move the cargo as long as you are paying the service level. My advice is to request your freight forwarder to confirm with the airline at the moment of booking and ensure the booking is done to the service level you need. Airlines will certainly work hard to meet your needs.

As of today, the IATA label is mandatory and I do commend the IATA TTTF group for taking such a big step and somehow forcing the collaboration among the supply chain links. IATA has provided many caveats in the label implementation to increase the flexibility for complying with its mandate but also to prevent disruption in the supply chains. Based on these caveats the word “mandatory” could be interpreted as voluntary in many cases because:

1) It only applies to cargo booked as temperature and time sensitive. Not every airline has a time and temperature program in place and may not call it that way.

2) It is up to each airline to accept or reject the use of the label. IATA recognizes that the Booking, AWB and SOP are the drivers and the label is just a reminder that the other three components must be in place.

3) If an incomplete IATA label is applied, then the AWB, SOP and booking complement the information for the cargo handling.

What is my proposal?

My proposal to IATA to create a voluntary certification program (not just a label) that certifies the airlines’ temperature controlled programs so these airlines can carry the IATA-certified program logo (similar to the Envirotainer certification program or the ISTA certification program for containers). IATA can standardize booking practices, SOP structure and contents, recommend infrastructure, training, auditing methods, etc for the temperature controlled programs available. I strongly believe IATA made a great effort to standardize labels and bring GDP awareness to the airlines. I recommend contacting IATA and sharing your experience because the more feedback the better aligned will be the freight forwarder and airlines to the industry needs. An IATA representative will be speaking at the IQPC’s 10th Annual Cold Chain & Temperature Control Global Forum in Chicago this September, so it may be a good opportunity to hear what IATA strategy and results behind the label effort are up to today. Unfortunately only a few IATA airlines or freight forwarders attend these events so I would encourage freight forwarders, airlines, shipping container suppliers and other supply chain links to attend the conference. This will also ensure a plurality of the feedback and ensure that we get new, fresh and perhaps different opinions because the cold chain supply pool is small yet.