Softbox Systems was asked by a leading manufacturer of diagnostic products to review
its use of Active RKN Dry Ice temperature control air cargo containers and to develop a
business case justification to identify cost savings it could make through implementing
the Silverpod (XPS) LD7 Half PMC Air Cargo shipping system.
Data used for comparative analysis
- Shipping temperature range +2°C to +8ºC
- Maximum shipping duration 96 hours
- Shipping lane from US to Europe
- 20 product cartons bulk loaded into RKN
- 320 product cartons shipped per week
- 16 RKN containers shipped per week
- Cost of RKN based on 6 day rental $1,920
- 832 RKN containers used per annum
- 16,640 product cartons shipped per annum
Annual packaging cost comparison
- Unit Cost of Packaging System: RKN = $1,920. Silverpod = $1,575
- # Product Cartons Packed/System: RKN = 20. Silverpod = 21
- Packaging System Cost/Product Carton: RKN = $96. Silverpod = $75
- Packaging cost to ship 16,640 Product Cartons: RKN = $1,597,440. Silverpod = $1,248,000
- Annual Packaging and Shipping Cost: RKN = $1,597,440. Silverpod = $1,248,000
Freight
The following is an estimate of the potential savings
in freight charges. Calculations are based on airlines
charging a premium of $1.00 to $2.00 per kilogram of
volumetric weight for shipping an Active container that
uses Dry Ice, a Class 9 hazardous material. The Silverpod
is a passive system that uses water based gels for cooling
and as such does not attract a premium freight rate.
Active system:
- 715 kg per unit @ 16 units per week = 11,440kg per week
- Annually – 11,440kg x 52 weeks = 594,880kg
- Annual savings @ $1.00 per kg = $594,880
Estimated annual packaging and air freight cost savings = $944,320