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Saturday, August 30, 2014
SUPPLY CHAIN RISK & LOGISTICS SERVICE PROVIDERS
LTD's supply chain risk model includes logistics service providers. While this particular instance is for the important food supply chain, it would be recognized by LTD.
Frozen food trucks fail standards tests
By Queena Yen ,The China Post August 30, 2014, 12:00 am TWN
The Consumer Protection Committee (CPC) under the Executive Yuan said yesterday that 73 percent of frozen food trucks failed to meet standards based on the result of random inspections of logistics companies. As Mid-Autumn Festival is around the corner, people have begun to stock up on goods for the celebration. Many products that people purchase need to be transported via refrigerated vehicles. However, the CPC found that some frozen food trucks are not cold enough to keep products fresh.
This situation was first discovered in July, when the temperature in one frozen food truck reached 33 degrees Celsius, which is grossly in violation of food safety laws. Therefore, the CPC decided to cooperate with local health and transportation authorities to inspect additional logistics companies.
The CPC inspected 35 companies and 80 vehicles including 48 frozen food trucks. The results revealed 35 out of 48 frozen food trucks did not keep sufficiently low temperatures during transportation.
Well-known Companies Fail to Meet Standards
According to the CPC, some well-known companies like President Transnet Corp. (統一速達), Kerry TJ Logistics (嘉里大榮物流), Taiwan Pelican Express Co. (台灣宅配通) and HCT Logistics (新竹物流) did not meet the required standards. In addition, it also found that the temperature of a frozen food truck from one Taoyuan company was 2 degrees Celsius, while it should have been minus 18 degrees.
Wang De-ming (王德明) of the CPC said apart from not maintaining the temperatures in frozen food trucks, 24 vehicles did not maintain records of the vehicles' temperatures, which also violates the Act Governing Food Safety and Sanitation.
Wang then pointed out that the CPC has already informed the violating companies to improve the situation by Sept. 10. If the situation does not improve after this date, the CPC can fine companies between NT$60,000 and NT$50 million. In addition, the CPC can also force companies to shut down operations depending on the severity of the violations.
The CPC also pointed out that consumers can claim compensation from logistics companies if their rights are damaged due to the temperatures of the vehicles.