Hop On the Cold Chain Train!

Hop On the Cold Chain Train!

As market demand increases regulation, necessary quality, and security, there grows a new niche in logistics called cold chain. Essentially, cold chain logistics refers to a supply chain that moves products sequentially in refrigerated transportation units without breaks. The most recent forms of transportation that are now included in cold chain logistics are found on the rails. The intriguing part about trains being included in the cold chain is the fact that they are one of the slowest forms of transportation, and to keep it cost efficient, cold, and secure for so long is no easy task. This report is here to inform you of the uprising mode of cold chain logistics and the motives behind the movement.

So why is this new uprising so important? Everything that is being carried by reefer ships, trucks, and trains are very relevant to you. Food that is now being requested to have no GMO's or additives are now even tougher to ship and require better-controlled environments. The average temperature of food and pharmaceutical industries is between 2-8º C and with more and more outbreaks happening every day, it's important to control these even during the transit phase. In the UK alone, there were 500,000 foodborne illness outbreaks reported. Investments are now being made to accommodate these needs with cold chain technologies growing annually at 7% a year through 2020 which puts the industry at a value of $235 billion by 2020.

As stated by the FreshOne website, Europe is the new lead exporter of agricultural goods. This relocates the market and also the trade routes which leaves a wide gap for new and reliable transporters, transportation infrastructure, and cold warehousing. The other factor to look at is the shift in customer demand.  More and more frozen foods are purchased every day and with this new demand, logistics managers need to be more agile when it comes to storing these frozen foods/produce due to demand fluctuation to avoid costly waste.

As efficiency and expertise of this new industry are gained, it brings a new target into scope. This includes bringing cooling technologies into countries that have low GDP's and tropical/hot climates. Attention is turning to many African countries where cooling technologies have not yet entered their warehousing infrastructure. This is a great opportunity to help solve many of the food issues that are seen in countries as such. Having the capabilities to store any type of food in a temperature controlled area gives a lot more room to support countries that struggle financially to feed their population.

Keep an eye open for these evolving technologies and the effect that they will have on business growth and also humanity. Where do you see opportunities for cold chain technologies? Do you see any obstacles besides the ones noted?

References:

http://www.freshonedistribution.com/food-cold-chain/

https://www.slideshare.net/businessdesign2011/cold-chain-logisticsHop