BDP International: Delivering What Matters in Global Chemical Transportation

BDP International Inc. (BDP), one of the world’s leading privately-held freight logistics companies, provided chemical shipping services to eight of the top ten global chemical companies. In April 2021, it contracted with a chemical company for two shipping orders, each to a different destination, and each with a set number of containers to be shipped every month for a year. The containers were filled with a chemical used in the electronics industry. This was one of the biggest logistical challenges faced by BDP’s vice-president of Government and Industry Affairs and its director of Transportation, especially because the ongoing COVID-19 pandemic had disrupted the global shipping industry.<br><br>After having sorted out and arranged for the shipping, a few containers belonging to BDP’s client were engulfed in a fire that broke during the vessel’s voyage across the Atlantic Ocean. The containers and their contents were damaged beyond recovery. BDP had to scramble again to plan transportation, this time deciding how to inform the client, deal with possible late penalties and damage fees, and make whole on the order.

This case can be used in undergraduate- and graduate-level courses on transportation, logistics management, international business, social responsibility, and operations management. Students should already understand the basic supply chain concepts and comprehend the logistics issues that can arise when shipping takes place in a global environment. The case examines practical, operational, financial, and managerial challenges resulting from transporting goods globally, especially when the trade industry is disrupted and dangerous goods are being transported. After working through the case and assignment questions, students will be able to<ul><li> list the common challenges that shippers face when transporting freight globally;</li><li>recognize risks associated with transporting dangerous goods;</li><li>understand the different factors that affect modal and route choices, particularly in a global context;</li><li>identify the factors that influence a shipper’s carrier choice;</li><li>comprehend the risks involved in sea shipping when carrying dangerous goods; and</li><li>understand how to deal with an incomplete shipment delivery and make whole on the order.</li></ul>

• chemical, DG, ship fire, logistics