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MSC. Maintenance & Repair 2022

WHAT DO WE DO?
• Oversee repair operations at terminals and depots
• Manage damaged inventory to minimize out-of-service times
• Review repair estimates for errors, discrepancies, and that costs are allocated correctly
• Monitor costs and statistics to ensure within KPI levels
• Investigate damage details and attempt to recover costs from liable parties
• Communicate with Geneva to acquire special confirmations on more costly repairs
• Audit vendor performance and pricing to maintain service levels and costs
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OUR GOAL
The goal of the Maintenance and Repair department is to meet our customers’ equipment
needs by keeping our fleet of containers, chassis, and gensets maintained to a safe and
reliable standard while minimizing repair costs.
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MAINTENANCE VS. REPAIR
There is a distinct difference between maintenance and repair, and how MSC manages both.
Maintenance
Repair
• Occurs before damage happens
• Occurs as a result of damage
• Helps ensure repairs are not needed and equipment stays in service
• Necessary to get equipment back into service
• Can be planned and budgeted
• Difficult to plan or budget
• Extends the lifespan of our equipment
• Examples
• Examples
Reefer/Genset PTI
Genset oil/coolant replenish
Genset belt replace
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Replace reefer condenser coil
Re-secure door gasket
Straighten locking rod
Patch roof/side panel
Replace floor sheet
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REPAIR OPERATIONS
There are various types of vendor arrangements and service agreements, and repair
operations can be found at ocean terminals and inland depots all over the world.
REPAIR VENDORS
• 3RD PARTY
• External company, no MSC relationship outside of service agreement
• Least control over costs and no financial benefit for MSC
• JOINT VENTURE
• MSC partners with another company, shares investment and gains
• Better cost control while still serving as source of revenue for MSC
• MSC-OWNED
• MSC makes investment and handles operations
• Best cost control and service levels
SERVICE AGREEMENTS
• LUMP SUM OR PER UNIT PRICING
• MSC pays flat rate and vendor performs all M&R work that is needed
• COST PLUS PRICING
• MSC agrees to pay vendor labor and material costs, plus an agreed-upon markup
• STANDARD TIME SYSTEM (STS)
• MSC pays hourly labor rate with defined times for each service performed
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REPAIR PROCESS – MINOR DAMAGE
Damages identified; equipment status updated to DAMAGED
Vendor inspects and submits estimate of repairs (EOR)
M&R reviews estimate for accuracy, approves work
Vendor performs repair, invoices MSC
Equipment status updated to REPAIRED, equipment is put back
into service
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REPAIR PROCESS – MAJOR DAMAGE
Damages identified; equipment status updated to DAMAGED
Vendor inspects and submits estimate of repairs (EOR)
M&R reviews estimate for accuracy, requests disposition
from GVA Logistics
• WEAR & TEAR - [email protected]
• IMPACT - [email protected]
GVA Logistics reviews estimate details, advises course of action
• Repair, scrap, sell, off-hire, reposition
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BUDGETING & COST ANALYSIS
Create a baseline and cost thresholds
Monitor costs to maintain target levels and KPI’s
Ensure costs are allocated properly
Look for trends to help predict costs
Compare locations or vendors to find opportunities for cost savings
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CATEGORIES OF EQUIPMENT DEFECTS
DAMAGE
• One or more physical defects in a container caused by a single event or series of single events, such as
impact, abrasion, or contamination, etc.
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CATEGORIES OF EQUIPMENT DEFECTS
WEAR & TEAR
• Physical defects caused by continuous deterioration in the physical condition of the equipment occurring
under normal-use conditions (such as exposure to sea water and the elements).
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CATEGORIES OF EQUIPMENT DEFECTS
NON-CONFORMING REPAIR
• Condition resulting from a repair not being performed in accordance with IICL-recommended repair
methods.
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HOW ARE CONTAINERS DAMAGED?
VESSEL LOADING
• Stevedore Handling
• Crane Handling
OUT TO
SHIPPER/CONSIGNE
E
• Cargo
Loading/Unloadin
g
• Over the Road
• Vandalism/Theft
ON TERMINAL
• Stevedore
Handling
• Lift Operators
• Heavy Winds (Act
of God)
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DURING VOYAGE
• Rough Seas
• Water Damage
• Reefer Malfunction
OVERSEAS
• Pre-Existing
(Repo)
• Cargo Loading
• Over the Road
VESSEL DISCHARGE
• Equipment
Malfunction (Ship
Shoes)
• Stevedore Handling
• Crane Handling
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DAMAGE - ON VESSEL
IMPROPER STOWAGE
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DAMAGE - ON VESSEL
CELL GUIDE DAMAGE
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WAVE DAMAGE
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DAMAGE - ON TERMINAL
WIND DAMAGE
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HANDLING DAMAGE
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DAMAGE - ON TERMINAL
WIND DAMAGE
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WIND DAMAGE
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DAMAGE – CUSTOMER ABUSE
IMPROPER CARGO SECURING
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IMPROPER LOADING EQUIPMENT
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GENERAL DEPOT SERVICES
• Inspection of incoming empty containers
• Damages repairs and maintenance
• Washing and cleaning services
• Upgrade services
• Categorization of empty containers
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DEPOT PRINCIPLES
DAMAGE
IDENTIFICATION/PHOTO:
INSPECTION
CATEGORIZATION:
• Perfect condition (A)
• Middle condition (B)
• Low condition (C)
• Upgraded
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• Location
• Type
• Materials
REPAIR ESTIMATION:
• Type
• Material
• Standard job hours
APPLIED DEPOT
SERVICE:
INFORMATION
EXCHANGE/APPROVAL:
• Repair
• Cleaning/washing
• Upgrade
• EDI Messages
• Liner database updates
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JUST ONE REPAIR CRITERIA WORLDWIDE – “IICL”
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IICL
Institute of International Container Lessors
Official guide accepted for repairs worldwide
• Repair material quality must be the same or superior to the
original one
• The repair method selected should be the most economical
one possible
• Repaired containers according IICL standards meet all
international regulations (like ISO, CSC and TIR)
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TYPES OF REPAIR PROCEDURES
BEFORE
AFTER
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CONTAINERS’ CATEGORIES
BY WEIGHT
• HT – Heavy Tested containers (Pay load ≥ 28000 kg)
• NOT HT – Not Heavy Tested containers (Pay load < 28000 kg)
BY CONDITION
• Perfect condition (A)
containers suitable to load a cargo, which requires a certain criteria of
cleanliness, such as: food, paper, furniture, other
• Middle condition (B)
containers suitable to load a packed cargo on pallets, in big bags,
bundles and other
• Low condition (C)
containers suitable to load a cargo, which doesn’t require a certain
criteria of cleanliness, such as: metal scrap, wood, vehicles and other
• Food grade
containers after upgrade procedure, suitable to load food products
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CONTAINERS’ CATEGORIES
EXAMPLES OF
CONTAINER CONDITION
A Grade -
B Grade -
C Grade -
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