Cool Cargo News

Food logistics providers increasing their offerings in the "new" last-mile — from restaurants and grocery stores to consumers' homes — as demand for online grocery shopping and direct-to-consumer food delivery skyrockets due to the COVID-19 pandemic.

The turmoil unleashed by the COVID-19 pandemic has barely subsided, evidenced by numerous reports of service failures that continue to come in from stakeholders throughout the food supply chain.

While food service and the retail grocery sectors adapt to new pandemic-linked realities, consumers’ food preferences remain unchanged.

The coronavirus disease 2019 (COVID-19) outbreak will distort container flows and global equipment fleet balance for at least another 90 to 120 days, according to Gregory Tuthill, chief commercial officer at SeaCube Containers.

The Chinese government says it will take “strong measures” to ensure supply chain fluidity for refrigerated (reefer) food products, but US exporters must wait for factories to reopen and ships to begin leaving China again.

US refrigerated (reefer) shippers reported improved service from ocean carriers in 2019, but equipment issues and other uncertainties could impact cold chains this year.

PortMiami won a $44 million federal grant which will be used to improve the cold chain cargo facilities to handle temperature-controlled food, and perishables such as flowers.

US exporters of refrigerated (reefer) cargo are facing costly delays in China and equipment shortages in the United States due to extended factory closures and limitations on worker movement caused by the coronavirus outbreak.

Maersk, tapping its reefer capabilities, has linked up with an Indian ag group on a pilot program designed to boost the carrier’s integrated strategy.

Chicago-based startup Transship is teaming with TradeLens and other tech companies to create an automated shipping and forwarding platform for containerized perishables shipments.

The acquisition of Emergent Cold gives US-based Lineage Logistics greater access to Asian markets and facilities at three US ports.

The acquisition of two Van Soest Coldstores facilities complements Lineage’s existing network of refrigerated sites across Belgium, the Netherlands, and the UK.

An Indian tech startup is luring reefer shippers with a digital platform as refrigerated cargo volumes in the country are on the upswing.

Continued depressed pricing has caused service levels in the refrigerated cargo market to deteriorate, but BCOs say there are other issues that need addressing as well.

Security and service problems face Mexico's intermodal sector as it seeks to expand its share of the reefer market.

Truck shortages, warehouse closures, and too many empty containers have exacerbated terminal and landside congestion.

After a subdued end to 2018 and trade and with economic hurdles stacking up, there are relatively low expectations for the trans-Pacific air cargo market in 2019.

CMA CGM (India) said the smart container was loaded onto the CMA CGM Tosca at Jawaharlal Nehru Port Trust on Nov. 30, destined for Marseilles, France.

Market share remains in the single digits —both as a percentage of overall reefer imports and exports in the US and overall volumes within the individual ports — but the port authorities of Georgia, South Carolina, and Virginia say the US Department of Agriculture clearance will open the door to even more business opportunities.

Every year, the expectation regarding “free” is that “free” gets faster and faster, and e-commerce players are a major factor. Thus, two-to-three-day click-to-delivery expectations are now the norm. And that’s upping delivery pressure on shippers.

The Lineage Cool Port Oakland cold storage facility offers direct access for up to 36 refrigerated rail box cars and also features 90 truck doors.

At issue is an effort by port employers to have deskbound longshoremen monitor the temperature of each reefer twice a day to ensure that it is at the correct temperature, instead of longshoremen physically walking up to each box, checking, and documenting the temperature on an iPad.

The new terminal gates at the Port Newark Container Terminal at the Port of New York and New Jersey have helped decrease turn times for trucks moving dry containers by 20 percent, and for refrigerated containers by 50 percent.

Gulftainer has big plans for its Wilmington, Delaware facility. And although port competition abounds, if lower costs and a quick rail or truck trip from Delaware to the New York-Washington, DC hinterlands ensue, shippers would no doubt take notice.

The International Air Transport Association said this slowing growth was coming against a backdrop of rising trade protectionism measures, and wider momentum in global trade was weakening.

A series of factors have coalesced, and a key research analyst notes that shippers should not expect price relief soon in this in-demand cargo segment.

Cold chain means much more than storage. The Global Cold Chain Alliance has catalogued more than 75 different value-added services currently offered by cold storage providers. And those services represent a substantial revenue stream that would surprise many.

After being shut down for a week and a half, the Port of Wilmington reopened its gates to truckers on Monday, and the work to reduce and eliminate the backlog of containers from before Hurricane Florence and from vessels discharging since last Thursday continues.

The reality of constant change presents opportunities and obstacles in the global reefer market. One example: new markets jockey with trade tensions. How can stakeholders capitalize on market dynamics while mitigating exposure to risk?

Revenue from 53-foot trailer-on-flat-car (TOFC) moves in the North America is up in a big way this year, so far, through August. But is 53-foot TOFC revenue an accurate leading indicator of overall domestic intermodal demand?

Electronic seals are considered tamper proof and, as such, the new process enhances supply chain security. In addition, as the process eliminates the need for physical, on-site inspection by customs officials, it can reduce shipper logistics costs.

Maersk, which transports roughly 20 percent of India’s containerized freight, said three factors have essentially combined to drive that impressive, steady growth.

The world’s largest ocean carrier has reopened shipping connectivity to the Maldives with a direct, weekly feeder link between Colombo, Sri Lanka, and Male, which it believes will prove to be a boon for trade to/from South Asia.

Shippers will likely see a substantial benefit from a new refrigerated container option for a peel-off pile program at the Port of New York and New Jersey.

“Trade wars never produce winners. Governments must remember that prosperity comes from boosting their trade, not barricading economies,” the International Air Transport Association said.

After a mixed performance in 2017, Europe’s top breakbulk ports face a complicated 2018, despite above-trend European GDP growth, due to the threat posed by tariffs and the reinstatement of sanctions against Iran.

With supply and demand in more of a balance, sector analysts say shippers should expect higher reefer rates.

Better tech and service may be up ahead. A global head of reefer management for a major ocean carrier predicted that shipping is moving toward a “new era of customer focus” with an emphasis on “creating products that actually add value to customers’ supply chains.”

The Europe-based ocean carrier has created another specialized, end-to-end cold chain logistics operation, as it works vigorously to establish a stronger foothold in the emerging market economy.

Nova Scotia-based Tangier Lobster does not cut corners nor does it nickel and dime transport providers. “We will pay extra for the very best logistics options because we have extremely valuable cargo and do not want to disappoint our customers,” Owner Stewart Lamont said.