Bulk liquid companies face unique supply chain challenges, including balancing fixed asset fleets and managing the specific requirements of liquid cargoes. Traditional ISO tank and tank truck operators often lack capacity or have fleets that don’t align with these specific needs.
According to Rob Parrish, president of FGN Global Logistics, specialized third-party logistics companies are well positioned to help resolve these challenges.
Acting in a supply chain design and execution role, bulk liquid 3PLs offer comprehensive analytics and route planning. “Our knowledge of the unique requirements of liquid cargoes allows us to design innovative, multimodal logistics solutions that are conceived from the start to meet our customers’ shipping cost requirements,” Parrish said.
Having used its technology focused logistics to innovate in the flexitanks space since its founding in 2012, FGN Global Logistics extended its services to include ISO tanks in 2020. In doing so, the company’s non-asset-based business model has created a new paradigm for ISO tank shipping. This “control tower” concept gives shippers a holistic view of their liquid supply chains, something that is impossible for shippers with multiple ISO tank operators and leasing arrangements.
To complement its single vendor business model, FGN has developed the capability to track ISO tank inventory available for hire. In essence, the company has connected shippers with a large inventory of underutilized ISO tanks. This has proven to benefit shippers with lower pricing and tank owners with increased tank utilization.
The non-asset-based ISO tank management model has another significant advantage. Traditional ISO tank operators structure their pricing so that demurrage and detention often account for the marginal profitability of a shipment. Alternatively, the value proposition of the non-asset-based model is to keep tanks moving at all times. “Our costing model incentivizes us to design routings that deliver cargoes quickly and effectively, and disincentives us to let tanks sit idle,” explained Parrish.
Fleet management resources are another area where the liquid logistics 3PL can add value. Large ISO tank shippers often have ISO tank fleets directly on lease for specialty products or other supply chain management considerations. Often, they don’t have the fleet management technologies in house to manage these fleets effectively.
Thanks to FGN’s robust TMS and fleet management systems, bulk liquid shippers have an outsourcing option to optimize and streamline their fleet operations. “As a technology-centric 3PL, we offer our customers fleet management resources that provide global visibility to their on-hire fleet, which significantly increases asset utilization,” Parrish said.
FGN Global Logistics is in the process of deploying a state-of-the-art route design and shipment execution platform driven by artificial intelligence. “We expect to be on the forefront of an industry realignment where freight forwarding companies transition from manual shipment management entities to technology-centric enterprises focused on fully automated shipment pricing, routing and execution,” Parrish said.
Having been fully digital since its founding in 2012, there is little doubt FGN Global Logistics will continue to lead the way in logistics technology innovation and liquid logistics.