Guidelines On Subcontracting Of Chemical Road Transport
OCTOBER 2005
Disclaimer:
The information, specification, methods and recommendations herein are presented in good faith, are believed to be accurate and reliable, but may well be incomplete and/or not applicable to all conditions or situations that may exist or occur. No representation, guarantee or warranty is made as to accuracy, reliability or completeness of said information, specifications, methods and recommendations or that the application or use of any of the same will avoid hazards, accidents, loss, damage to property or injury to persons of any kind to persons or property or that the same will not infringe patents of others or give desired results. Readers are cautioned to satisfy themselves as to the suitability of said information, specifications, methods and recommendations for the purposes intended prior to use.
Wherever the Guidelines refer to a specific assessment system, e.g. SQAS, it is understood that Main Hauliers may, even if this is not explicitly mentioned, also choose to rely on equivalent assessment schemes or to set up and monitor individual criteria themselves. Nothing in the Guidelines shall be construed as restricting the Main Haulier’s ability to adopt such assessment criteria when entering into an agreement with its subcontractors or as a limitation to the quality and variety of services offered by them to the shippers. The Guidelines do not contain any restrictions on pricing or terms and conditions.
TABLE OF CONTENTS
- Introduction
- Scope
- Selection Process of Subcontractors
- Criteria for Subcontracting
- Definitions
- Annex 1: Example of a Subcontractor Selection Policy at a Main Haulier
- Contacts
INTRODUCTION
The chemical transportation industry in Europe is in continuous change, adjusting to new geographical realities, economic and environmental pressures, and the changing needs of its customers. Chemical shippers have re-engineered their supply chains, leading to fewer transport service providers who interact directly with shippers. This is driven by modern logistics IT-systems with higher automation requiring more simplified supply chain interfaces.
In the past, chemical shippers expected their base load to be carried by their selected Main Hauliers, but today's transported volumes are often too large to be handled solely by these hauliers with their own equipment and drivers. Thus, alliances, outsourcing, and mutual subcontracting have become necessary to meet the chemical industry's transport requirements and to optimize economic imbalances.
The Main Hauliers have aligned their quality and safety management to meet the expectations of shippers, allowing customers to verify and monitor their Safety and Quality performance. When Main Hauliers need the services of other transport companies to execute their service agreements, they must demonstrate that these subcontractors meet the same standards.
The European chemical transport industry strives for excellence in customer service, reliability, and high performance in Health, Safety, Security, Environment (HSE), and Quality. Several initiatives since 1995, including Responsible Care in chemical transport operations and various best practice guidelines, aim to improve these standards. To create a uniform and transparent understanding related to subcontracting, a working group under ECTA, EPCA, and Cefic prepared these Guidelines on Subcontracting of Chemical Road Transport.
These Guidelines establish standards for subcontractor services that are justified by the need for proactive management of environmental, security, and safety aspects and compliance with customer requirements. They are indicative, and Main Hauliers can offer other service standards as long as they comply with applicable legal requirements.
SCOPE
These Guidelines describe best practices in selecting subcontractors and continuously evaluating and monitoring their HSE and Quality standards. They aim to ensure that subcontracted services meet the same standards as the Main Haulier's own services and offer guidance on managing subcontractors. The standards are objectives to be reached via continuous improvements and are not intended to restrain contractual freedom.
The term “Road” transport in the Guidelines includes multimodal chemical transport with a road leg. Main Hauliers must apply these guidelines in subcontracting for both road transport sides of multimodal transport.
SELECTION PROCESS OF SUBCONTRACTORS
Main Hauliers should follow a careful selection process to ensure subcontractors are fit for service and meet HSE and Quality standards. Criteria for this process are described in Chapter 4. Business decisions and competition aspects related to the commercial relationship between Main Hauliers and subcontractors are not covered here.
CRITERIA FOR SUBCONTRACTING
Company Policy
Main Hauliers should have a formal written Subcontracting Policy expressing their strategic view on subcontracting and their procedure for applying and monitoring the criteria listed in these Guidelines.
Compliance with Regulations
Subcontractors must comply with all relevant national and international regulations and laws. Key compliance areas include operating licenses, driver licenses and certificates, drug and alcohol policies, working and driving hours, parking and routing regulations, transport documentation, risk information, and emergency response arrangements. Specific criteria apply to the transport of dangerous goods.
Equipment and Operations
Subcontractors' equipment must comply with legal requirements, be well-maintained, and include required safety features. Main Hauliers should review construction standards and maintenance of equipment. Subcontractors should perform loading and unloading professionally, efficiently, and with appropriate equipment.
Performance Monitoring and Auditing
Main Hauliers should follow up on subcontractors' HSE and Quality performance using efficient systems. Regular meetings should occur to discuss improvements, and Main Hauliers should either audit subcontractors or review third-party assessments.
Levels of Subcontracting
Subcontractors should not subcontract services further without ensuring equivalent HSE and Quality standards are maintained.
Insurance Cover
Main Hauliers should carefully review subcontractors' insurance cover for compliance with legal and activity-specific requirements.
Reporting
Subcontractors should report equipment damage, irregularities, unsafe situations, accidents, incidents, cargo damage or discrepancies promptly. Continuous learning and improvement processes should be established.
Financial Reliability
Main Hauliers should check the financial health and reliability of potential subcontractors before entering into contracts.
Confidentiality
Contracts with subcontractors should include confidentiality clauses for operational and commercial data.
Security
Main Hauliers should ensure subcontractors comply with legal security requirements to protect equipment, goods, and information, including driver identification.
DEFINITIONS
Main Haulier
The Main Haulier is the party with a direct contract with the shipper, using other transport service providers as subcontractors when needed. They must ensure subcontractors meet the same high standards.
Fully Integrated Subcontractors
These subcontractors are integrated into the Main Haulier’s Management System without losing their independent status. Full integration examples include joint transport planning, driver training, and performance follow-up.
Not Fully Integrated Subcontractors
These subcontractors are not fully integrated into the Main Haulier’s Management System, and their standards should be reviewed against customer and best practice criteria. SQAS or other assessment systems can support this process.
Spot Subcontractors
These subcontractors are selected for sudden needs and must conform to the HSE and Quality standards set by the Main Haulier and shipper.
ANNEX 1: EXAMPLE OF A SUBCONTRACTOR SELECTION POLICY AT A MAIN HAULIER
This decision flow chart is an example. Main Hauliers are free to determine their written policy and related assessment criteria.
CONTACTS
Joachim Baeder | BASF AG
Carl-Bosch-Str., 38, 67056 Ludwigshafen, Germany
T +49 6216 073566, F +49 6216 042525
joachim.baeder@basf-ag.de
Evert de Jong | De Rijke Group
Malledijk 7, 3208 LA Spijkenisse, The Netherlands
T +31 181 654 292, F +31 181 654 317
evert.dejong@derijke.com
Leen de Rijke | De Rijke Group
Malledijk 7, 3208 LA Spijkenisse, The Netherlands
T +31 181 654 231, F +31 181 654 317
leen.derijke@derijke.com
Bert Zuidema | DSM Industrial Services Physical Distribution
6160 BD Geleen, The Netherlands
T +31 464 773883, F +31 464 770003
bert.zuidema@dsm.com
Luc Dillen | ExxonMobil
P.O. Box 1, 4803 AA Breda, The Netherlands
T +31 76 5292618, F +31 76 5292708
luc.dillen@exxonmobil.com
Jan Van Dongen | Groupe Samat
Nieuwe Bredasebaan 10, 4825 BP - Breda, The Netherlands
T +31 76 57 80016, F +31 76 57 11989
jan.vandongen@groupesamat.com
Luc Haesaerts | Haesaerts Intermodal
Koningin Astridlaan 29, 2870 Breendonk, Belgium
T +32 3 860 64 64, F +32 3 886 71 68
lhaesaerts@haesaerts.be
Peter Van Santen | Kube & Kubenz Internationale Speditions-Gesellschaft
Nagelsweg 39, 20027 Hamburg, Germany
T +49 4023 72070, F +49 4023 3430
peter.vansanten@kubekubenz.com
Andreas Zink | LKW Walter
I.Z. Süd Objekt 14, 2355 Wiener Neudorf, Austria
T +43 5777 72344, F +43 5777 75234
zink@lkw-walter.com
Johan Bakker | Lyondell
Weenapoint D, Weena 762, 3014 DA Rotterdam, The Netherlands
T +31 10 2755886, F +31 10 2755559
ccejxb@lyondell.com
Luc Thieleman | Rinnen België BVBA
Kreek 10, 9130 Kieldrecht, Belgium
T +32 3 561 43 99, F +32 3 561 44 07
luc.thieleman@rinnen.com
European Chemical Industry Council
Avenue E. van Nieuwenhuyse 4 E. van Nieuwenhuyselaan, 1160 Brussels, Belgium
Tel: +32 2 676 73 95, Fax: +32 2 676 74 32
www.cefic.org
European Chemical Transport Association
Avenue de Tervueren 149 Tervurenlaan, 1150 Brussels, Belgium
Tel: +32 2 741 86 67, Fax: +32 2 741 86 82
www.ecta.be
European Petrochemical Association
Avenue de Tervueren 149 Tervurenlaan, 1150 Brussels, Belgium
Tel: +32 2 741 86 60, Fax: +32 2 741 86 80
www.epca.be
