Cold Chain Challenge: Meeting Increased Demand for Fresh and Frozen Food

Paperin goes on to talk about the new technologies in storage as well as the new logistics and sales chains, so foods will be stored and transported in different ways. For example, he says, “Currently, the majority of Driscoll’s berries come from California; but they will be able to buy berries from Peru and sell to Germany directly, rather than just importing to Holland and distributing throughout Europe. Places that are known for poor food quality will be ignored in favor of places that have better supply chain logistics and quality.”

Consumer demand for fresh food has opened new trade routes and caused nations from distant continents to capitalize on cold transport to meet the rising needs. Sue Rutherford, vice president of marketing for ORBCOMM, Rochelle Park, N.J., says the global trade in perishable food is growing at about 4 percent per year; trade within and between some nations is expanding even faster. New trading routes are also opening, for instance between Latin America and China, as global economic relations and dynamics shift. Demand for cold storage and transport will continue to grow worldwide, especially in nations that currently lack a well-developed cold chain infrastructure, including India, China, Africa, and Southeast Asia, particularly Indonesia. However, mature economies like the U.S. and Europe also need to address cold storage capacity that is aging and/or in the wrong locations for emerging industry dynamics.

Technological Improvements

Rutherford says digitization is helping improve food quality while aiding the supply chain. Technology allows vigilant monitoring of food shipments and inventory, so it may be appropriately stored for advantageous lengths of time, while remaining safe for market where and when it reaches it.

For instance, ORBCOMM provides Industrial Internet of Things (IIoT) telematics and sensor hardware, network connectivity, and cloud software that enable remote visibility and control of refrigerated trailers, containers, and perishable cargoes in-transit and in-facility.

“Companies are looking to have more data and to use it better,” Rutherford explains. “In cold chain, investment in telematics and sensor technology, such as we provide, has initially been driven in many cases by regulatory compliance with the FDA Food Safety Modernization Act, other food safety regimes like Hazard Analysis and Critical Control Points, and related transport safety rules. But technology is now being used in many other ways to help companies maximize utilization of the assets, improve cargo care, and get a more proactive control over their cold chain.”

These developments open the market aperture for food supply. “The outlook is absolutely positive in opportunity terms, but regulatory, capacity, and investment headwinds continue,” she notes. “What we see is companies turning to data and digitalization to give themselves much better insight and control over cargo care in transit, asset, and proactive cold chain management.”

Jeff Van Pelt is a principal with OSIsoft, which collects, analyzes, and visualizes large amounts of big data and IoT data from various sources for real-time decision-making in several industries, including cold transport.

“There’s an opportunity for companies to take better advantage of technology and data, from manufacturing, warehousing, and distribution, to connect the cold chain and provide real-time visibility throughout the process,” he explains. “The availability of sensors to collect massive amounts of data, and for systems to collect, harmonize, and store that data for analysis, provides an opportunity for significant efficiency gains.”

Van Pelt says that domestic investments in newer, more technologically advanced storage facilities are providing more efficiency. The global demand for fresh and temperature-sensitive products requiring cold chain capabilities is increasing the need for the appropriate logistics services.

Cold Chain Suppliers and Food Brands

Food companies are looking to cold chain logistics providers as more than a proffer service; they consider them representatives of their brand. According to the Global Cold Chain Alliance’s (GCCA) 2018 Customer Demand Research Report, which surveyed some 200 food companies in 14 countries, food companies see cold chain providers as extensions of their brand and key performers to ensure food safety. When the food companies were asked what top business trends will most impact their company, the No. 1 response (122 of the 200 respondents) was “food safety and protecting the brand.”