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Why Sustainable Cold Chains Are the Future of Global Food Transport

global trade cold chain

Why Sustainable Cold Chains Are the Future of Global Food Transport

Global food transport is a significant problem. And no, that problem isn’t necessarily fragmentation, although supply chain fragmentation has caused many a budget balancer to suddenly get a headache. No, the issue we’re going to cover here today is global food transport’s relationship with sustainability – or rather, its lack thereof. 

Read also: Adapting to Climate Change Challenges in the Cold Chain

The doomsday scenarios associated with the coming climate crisis are no longer far off, as regions in the U.S. have suffered the disastrous effects of amplified severe weather. And unless action is taken, it will only get worse: the World Economic Forum projects that by 2025, economies worldwide will suffer 12.5 trillion dollars in losses, and that over 2 billion healthy life years will be lost.

So why are we talking about climate change in conjunction with global food transport? Well, because the food industry is responsible for one-third of the world’s greenhouse gas emissions. The massive carbon footprint left by the food industry is a cause for concern on its own; never mind the average 30-40% of goods the industry loses regularly. 

Put simply, the food transportation industry has an impetus to pursue sustainability – and not just for an abstract goal of being future-proof, but for mitigating losses today. In this piece, we’ll take a look at sustainable cold chains as a solution, showcasing how they resolve pain points in the present, while also setting your organization up for a bright future. 

Understanding the Impact on Globalized Food Chains

Before outlining the solution, we have to understand how climate change is affecting cold chains today. Cold chains are temperature-supported supply shipments that are highly utilized in food transportation, as they allow goods to be stored at the proper temperatures while shipped. 

Globalized supply chains unlock greater food diversity and availability, connecting international markets and driving trade efficiency. Part of the reason they can do these things is cold chains, as cold chain technology helps preserve goods during long journeys. 

However, even the most advanced cold chain solutions have stress tolerance limits; limits that will be increasingly put to the test as climate change continues to occur. Heat waves can push refrigeration technology to the point of shutdown, and delays in shipping caused by flooding, blizzards, or any other natural disaster can cause the technology to work longer and harder. 

Moreover, cold chain technology can also contribute greatly to energy expenditure. Research shows that over 44% of food transport’s energy consumption ties back to cooling technology; though it also shows that costs can be severely cut if organizations replace inefficient models with new systems. 

To sum up, food transport organizations must find ways to optimize their cold chain technology’s output, while also cutting back on resource consumption.

The Role of Renewable Energy 

One means of addressing both challenges is investing in and incorporating renewable energy sources into your supply chain. Solar and wind power can replace limited, fossil-fuel-reliant energy sources with stable, reliable sources of power, provided organizations have the grid infrastructure to support renewables. In cases where renewable resources have been integrated into city infrastructure, for example, intermittent supply can be problematic; something that supply chain organizations can insulate against by leveraging adequately supportive frameworks.

But how? Well, firstly, renewable resources are typically more efficient than their fossil-fuel counterparts. As companies invest in solar power, wind turbines, and other renewable energy techniques, they’ll find that their overall power expenditure goes down over time. Combined with Internet-of-Things-powered smart temperature controls, organizations can make sure their systems are only using the energy they need; no more, no less.

Investing in renewable energy also allows organizations to align themselves with sustainability best practices, cutting down on their carbon footprint while simultaneously gaining a strong selling point with eco-conscious consumers. 

Reducing the Carbon Footprint

Another avenue you can take is investing in energy-efficient technologies throughout your cold chain. Replacing old, inefficient technologies that create a lot of leakage might slash your overall impact overnight.

AI and IoT sensors can also have a positive impact on your carbon footprint, allowing your systems to predict and respond to shifts in climate without any wasted energy. AI also provides route optimization functionality, aggregating and analyzing weather pattern data to recommend a route with minimal disruption. 

You can even take a deeper dive, looking into the specific coolants used to fuel your refrigeration systems. Natural refrigerants have a net zero climate impact; switching your current refrigerant with a natural variant may have a significant impact on its own. 

While there will always be hiccups, disruptions, and a degree of waste, you have the ability to take control of your output and optimize your processes by choosing a sustainable supply chain. This can help you position your company for more 

global trade cold chain logisticsc controlled

Adapting to Climate Change Challenges in the Cold Chain

Climate change is a multifaceted challenge, forcing businesses to adapt to a new reality governed by rising global temperatures and unpredictable weather patterns. Cold chains are particularly vulnerable to these disruptions, underscoring the importance of adopting resilient strategies capable of withstanding the impact shocks. 

Managing Supply Chains is More Challenging Than Ever

It’s no secret that maintaining sustainable supply chains is becoming increasingly difficult. Increasing freight prices, labor shortages and port congestions are just some of the mainstay challenges suppliers have to deal with in 2024. For instance, freight rates from China to the West Coast jumped by over $2,300 between January and February.

The escalating impacts of climate change — rising sea levels, soaring temperatures and depleted waterways — increasingly threaten the production and delivery of goods. Extreme weather events cause significant damage to critical infrastructure like ports, warehouses and roads, leading to increased downtime.

Because of the interconnected nature of global supply chains, disruptions in one region can have a ripple effect on the entire logistics network of another area. The drought affecting the Panama Canal is a stark reminder of the disruptive power of climate change.

Maintaining Cold Chain Integrity

The effects of climate change are decidedly more pronounced across the cold chain. For instance, heat waves can affect the efficiency of warehousing and transportation. Floods and wildfires make roads inaccessible, leading to delivery delays and heightening the risk of item degradation while in transit. Shipping temperature-sensitive items like food and vaccines securely is crucial to tackling food scarcity, preventing waste, and supporting agricultural livelihoods worldwide.

However, each step of the chain — refrigerators, industrial chillers and transportation — considerably contributes to climate change. For example, cold storage facilities must maintain temperatures as cold as -122˚ Fahrenheit to preserve the integrity of certain pharmaceuticals. It takes significant energy to achieve and sustain such conditions, which eventually take a toll on the environment. 

Climate Risk Management for Resilient Cold Chains 

Supply chains are responsible for around 60% of all carbon emissions globally, further prompting the need for decisive action toward mitigation and adaptation. Managing climate risk begins with identifying exposure.

Companies and stakeholders at each touch point across cold chains must account for inherent risk factors in daily operations. For instance, refrigerated warehouses in flood-prone areas could prompt businesses to change existing processes or relocate certain operations entirely.

Exploring options such as shortening the value chain or adopting newer technologies could also help minimize climate-driven impacts. Recent research shows cooling systems account for 44.1% of energy consumption in cold storage facilities, but simple measures like multiple compressor systems and capacity grading can lead to over 30% savings.

Larger suppliers and shipping firms can facilitate sustainable cold chain practices by maintaining climate-friendly criteria and requiring partners to do the same. This approach can create a trickle-down effect, gradually reforming the supply chain. Obviously, additional costs will be associated with such changes, but once the bigger players start to do it, their competitors will have no choice but to follow suit.

Adopting innovations like AI and IoT sensors can also help brands and transporters manage climate risks. For example, AI can help with route optimization by aggregating weather pattern data and suggesting the best journey times for deliveries to minimize disruptions. Additionally, real-time tracking and monitoring provide increased visibility into supply chains, enabling shipping enterprises to respond promptly to climate-related interruptions. 

Nature-Focused Planning 

Resilient cold chains require coordination on a local and global scale. Businesses must be mindful of the importance of nature in supporting supply chains and safeguarding environmental wellbeing.

Renewable energy sources, electric vehicles and eco-friendly packaging are critical to reducing the sector’s carbon footprint, facilitating more sustainable logistics operations in the long run. These considerations will likely be among the biggest drivers of capital allocation decisions in the coming years. 

Public Sector Reforms 

Regulations surrounding sustainability efforts will be critical in supporting a climate-resilient cold chain. Everything has to work in sync, with policymakers providing the right incentives to motivate change and companies doubling down on their eco-conscious practices.

There also needs to be improved levels of scrutiny around compliance with climate regulations to foster increased corporate accountability, especially concerning environmental impact reporting. Only 36% of companies disclosed their Scope 3 emissions — indirect emissions occurring in their respective value chains. With stringent disclosure requirements, governments can proactively address climate risks in supply chains and curb the menace of greenwashing.

Building More Sustainable and Resilient Supply Chains 

The data is undeniable — extreme weather, depleted waterways and rising temperatures are disrupting global cold chains to their very foundations. The frequency and severity of these events make resilience and adaptability paramount considerations for the industry’s future. By investing in climate-friendly infrastructure, adopting energy-saving technologies and fostering nature-driven collaborations, the logistics sector can build a robust foundation for sustainability and resilience across the value chain.

chain

Sensitech Unveils TempTale GEO X: Advancing Pharma Cold Chain Visibility and Logistics Management

Sensitech, a renowned provider of supply chain visibility solutions, has introduced TempTale® GEO X, an innovative IoT temperature monitoring solution tailored specifically for the life sciences industry and logistics organizations. This cutting-edge solution is designed to deliver real-time monitoring and analytics for temperature-sensitive medicines and vaccines transported globally across various modes of transportation, including air, ocean, road, and rail. TempTale GEO X represents a significant step forward in enhancing cold chain compliance, supply chain efficiency, and sustainability outcomes in the pharmaceutical supply chain.

Key features of TempTale GEO X include real-time location visibility, temperature monitoring capabilities ranging from minus 95 degrees C to 55 degrees C, global connectivity flight compliance, a built-in screen for live product quality information display, and advanced battery management. When combined with the SensiWatch® platform and Lynx Logix™ digital solution, TempTale GEO X provides comprehensive real-time data and analytics for precise shipment visibility, alerting, and automation of critical decision-making processes.

With a focus on user-friendliness and efficiency in a fast-paced distribution environment, TempTale GEO X offers a seamless and intuitive interface. Additionally, Sensitech’s device returns-recycle-reuse program ensures scalability and sustainability benefits, making it a valuable asset for life sciences and logistics organizations.

Key benefits of TempTale GEO X for life sciences and logistics organizations include:
– Actionable insights and alerts for maintaining product quality and compliance through precise temperature monitoring, humidity, light, and location tracking.
– Intelligent automation to streamline manual processes and expedite handling with automatic documentation and alerts, enabling logistics and quality teams to make informed decisions while in-transit.
– Minimized handling, device management, and user errors with fully charged and calibrated devices for a true plug-and-play experience, integrated with Sensitech’s suite of connected cold chain solutions for proactive supply chain intelligence.

TempTale GEO X represents a significant advancement in enhancing visibility, compliance, and efficiency in the pharmaceutical cold chain, offering a comprehensive solution for addressing the evolving needs of the life sciences industry.

packaging

Maintaining the Cold Chain: The Growing Importance of Temperature Controlled Packaging

The global temperature controlled packaging boxes market is anticipated to accumulate a market value of US$ 11.81 billion in 2023 and is expected to garner a valuation of US$ 30 billion by exhibiting a CAGR of 9.7% in the forecast period 2023 to 2033. The market of temperature-controlled packaging boxes market reflected growth with an 8% CAGR in the historical period 2018 to 2022.

Rising demand for temperature-controlled packaging boxes across various industries like food & beverages, pharmaceuticals, chemicals, and others are anticipated to drive the market growth during the forecast period. In the pharmaceuticals sector, these boxes are used for the transportation of medicines at a certain temperature which is necessary to protect the product from damage.

The recommended temperatures for vaccine storage include -80°C (dry ice), -60°C, -20°C, and the most common 2-8°C temperature range. Additionally, these boxes are used in the food and beverages sector to preserve the shelf life of frozen foods such as meat bakeries and others. Thus, the increasing adoption of cold chain packaging solutions in various sectors is expected to drive market growth during the assessment period.

Future Market Insights says, the increasing use of cutting-edge technologies in the pharmaceutical industry presents a potential for the expansion of the market. The digital platforms keep track of temperature, vibration, and other variables for cold chain payload transfers. The market reflects faster growth when information like flight schedules, weather, and the promise of express delivery of goods is made available.

Apart from this, the growing use of vacuum panel insulation (VPI) with stage modification materials might extend the shelf life of pharmaceutical products that are stored thereby supporting market expansion. Another significant factor for market growth is the increasing emphasis on pharmaceutical companies developing medications and treatments for uncommon illnesses.

Such medications have a limited shelf life and are made of expensive ingredients. They demand a strict temperature-controlled environment as a result. Thus, in the coming years, this factor will shape the market growth. Also, considering the growth in the e-commerce industry, insulated packaging is expected to witness high sales with smaller e-commerce and food delivery platforms across meal kits and other perishable food and beverage items.

As various packages containing fresh and frozen items need good insulation, the pandemic-led behavioral change has led to packages being left outdoors for some time which will boost the product demand even more.

On the regional end, Asia Pacific is expected to dominate the market by commanding over 40% market share by end of the forecast period. The market in this region will also grow with fastest CAGR of 9.5% during the forthcoming period. Due to the rising geriatric population, escalating demand for medicines will drive the pharmaceutical market in the Asia Pacific. This will directly create demand for cold chain packaging boxes.

How Competitive is the Market?

Recent developments and breakthroughs in technology, mergers, acquisitions, tie-ups, and partnerships within the companies involved in manufacturing temperature-controlled packaging boxes are expected to create lucrative opportunities for market growth during the forecast period.

·         In March 2022, Packaging Technology Group, LLC, a leading supplier of environmentally friendly, curbside-recyclable thermal packaging materials for the life sciences sector, has been purchased by Cold Chain Technologies, LLC, a portfolio company of Aurora Capital Partners and a key provider of thermal packaging solutions for the transportation of temperature-sensitive products.

·         In December 2022, Sonoco ThermoSafe, a division of Sonoco, a manufacturer of cold chain packaging solutions, is expanding its Orion Rental packaging program in the United Kingdom as the demand for eco-friendly packaging for temperature-sensitive pharmaceuticals rises.

Temperature controlled packaging boxes are used for shipping the medical products and vaccines, which are prone to get damaged caused by temperature variations. The temperature controlled packaging boxes usually have insulated inner body, which helps in maintaining the temperature of the inner contents.

Temperature Controlled Packaging Boxes Market: Regional Outlook

The worldwide temperature controlled packaging boxes market is very popular in the Asia Pacific. China holds the biggest market for cold chain development, owing to well-established infrastructure in large urban populations and growing demand of frozen products in the world. India is estimated to have a rapid transition in the temperature controlled packaging boxes market due to rapid increase in the pharmaceuticals industry.

North America is also holding a potential business market of the temperature controlled packaging boxes and is required to observe growth. Followed by Asia Pacific and North America, Europe is also expected to witness high growth in the temperature controlled packaging boxes market due to high disposable income.

On the other hand, the demand for temperature controlled packaging boxes in Middle East & Africa and Oceania is sluggish as contrasted with different areas.

diesel

Cold Chain Turns the Heat Up on Emissions

Cold chain makes up a large part of the logistics industry, with refrigerated transport a key component of the sector. With more people now doing their shopping online, both for special items and, more importantly, groceries, the number of refrigerated trucks or refrigerated transport units (TRUs) has increased. The refrigeration systems on TRUs need to be powered, with the majority of regular auxiliary engines powered by diesel put into the trucks for fuel also powering generators.

However, TRUs are incredibly bad for the environment. The WHO estimates 4.2m people die each year from air pollution related illnesses. 1 TRU produces anything between 3-15 tonnes of CO2 per year, making it equivalent to 9 diesel vehicles. Scaled up, 1m TRUs has the same impact on air pollution and emissions as 56m diesel cars. A 2021 research paper concludes that in the UK, TRU CO2 emissions are 15% higher than a normal delivery vehicle, with nitrogen oxides (NOX) emissions 18% higher. In the US, light-heavy duty transportation vehicles make up over 80% of its total transportation greenhouse gas (GHG) emissions, TRUs making up to 9% of this total.

It is clear to see there is an emission problem with TRUs, but it creates a difficult situation for companies which provide services using these vans, as solutions have not been cheap. However, many companies are beginning to consider their options for a more sustainable future. There are also small but significant changes that companies can make to reduce TRU emissions. For example, a simple colour change from a dark brown and black to yellows and silvers can produce less emissions due to heat absorption. The weight of the vehicles also impacts the level of emissions. These factors all need to be considered when thinking of how to move away from diesel powered generators.

There may be opportunities arising to address TRU emissions in the not too distant future. In the UK for example, there will be a removal of the red diesel subsidy. TRUs use red diesel to run the vehicles and fridges. It is taxed at 50% less than regular diesel, which has been used as an incentive for the continued use of diesel to run the engines and fridges of the trucks. In 2022, that subsidy will end for all vehicles apart from agricultural. The extra cost for red diesel to fuel the trucks and power generators is estimated to reach at least £1,750 per truck per year. It is at this point in time which offers an unprecedented opportunity for a wholescale change to alternatively powered TRUs.

Hultsteins is a British-Swedish diesel-free refrigerated transportation company. It has proposed the use of its own tried and tested solution to bypass the utilisation of diesel power on board TRUs. It owns a series of trucks in its fleet that counter the use of diesel to power its generators and fridges. The main truck model is called Ecogen, a truck which uses a small electric generator. The Hultsteins system does not fully replace the diesel power but creates a hybrid system. Using both the diesel from fuel and the small electric generator, the hybrid system constantly produces 400V of potential, even when sat idle.

The company states it saves up to 90% of diesel consumption per unit. Hultsteins estimates Ecogen can save 20 tonnes in carbon emissions per unit per annum. Additionally, carbon and nitrogen emissions can be reduced up to 95%. As such, sustainable investors will be looking at this in more detail in the future, with some UK-based road freight companies already looking into this, such as Gist.

More than just the Ecogen system is available on the market, with other companies exploring the use of large-scale batteries and solar panels to power generators. A collaboration between Sunswap and Cenex is aimed at reducing emissions in TRUs through the development of solar powered generators. The energy is stored in high-power batteries, however there is also the scope to include solar panels on the roof of vehicles. This will help companies to reach a variety of demand from customers.

Other companies such as Sainsbury’s are also exploring the opportunity to innovate its own emissions-saving technology, and has rolled out five fully electric TRUs to its fleet in 2021. It is now further investing further in innovation to continue decreasing its emissions. The company claims the new TRUs will help save 4 tonnes of carbon per year.Sunswap itself has secured further funding of £3m from Barclays Bank to accelerate the development of fully electric, zero emissions TRUs, promising between 80-93% global warming impact savings. Although there is still a long way to go, it is clear that some companies are attempting to embrace the chance to make major climate-orientated changes.

global trade cold chain logisticsc controlled

4 Ways the IoT Helps Optimize Cold Chain Logistics

Industry 4.0 technology can help to make cold chain logistics much easier to manage. Internet of things (IoT) devices are already used in a wide range of industries to gather real-time information on business processes.

In the cold chain, IoT technology can help businesses track important data on shipments — potentially allowing them to prevent temperature excursions and provide better data to stakeholders.

Here’s how businesses are already using IoT to optimize their cold chain logistics.

1. Temperature Monitoring

A key feature of IoT devices is their ability to monitor the temperatures that cold chain shipments are exposed to.

By attaching an IoT temperature monitor to the outside of a package or pallet, sensors can be used in a variety of transportation modes — including trucks, rail freight or air cargo — to continuously track the temperature of food items, important pharmaceuticals and other items that need cold chain logistics.

These sensors will gather and report this data in real-time. Because IoT sensors can automatically store data on the cloud, all relevant stakeholders can have access to the temperature data that they collect.

In the event that an IoT sensor detects a temperature excursion, an alert system can automatically notify managers, drivers, administrative staff and other workers — allowing them to take action to prevent spoilage.

Stored data can also be used to improve processes, identify bottlenecks and determine fault in the event that an excursion causes spoilage. At any time after a sensor collects temperature data, stakeholders can review captured information and trends — or use analytics software to automatically extract valuable insights from historical temperature data.

IoT temperature tracking devices can also monitor other aspects of a shipment’s journey — for example, a combination vibration, light and temperature sensor can monitor for heat as well as exposure to light, shocks, vibrations and sudden stops.

Many cold chain products don’t just require low temperatures. Many vaccines that need cold chain logistics, for example, may spoil or lose potency if exposed to light. Sudden shocks can also risk damage to vaccine containers and packing materials.

IoT devices that monitor for temperature can also help to monitor for these potential threats.

2. GPS and RFID Shipment Tracking

IoT devices are also excellent at tracking the current location of a shipment or individual product. By using technology like GPS or RFID, it’s possible for an IoT device to gather information on a shipment’s movement.

With GPS, this information will be in real-time. With RFID, the system will depend on RFID readers installed at important locations that continuously scan for RFID tags. These systems will provide instant updates whenever an RFID tagged shipment arrives at a warehouse, fulfillment center, retail location or delivery destination.

These systems can automatically alert stakeholders when an item is on the move, allowing them to track the position of all their shipments, 24/7. The same IoT device can be used to monitor both temperature and location.

The same technology can also help businesses and logistics providers offer better delivery estimates to their clients. With real-time tracking, it’s much easier to accurately forecast when an item will arrive at a destination.

3. Automated Reporting and Cloud Data Storage

Because IoT devices are connected to the internet and can collect data continuously, they can also be used for automatic report-generation and cloud data backups.

For example, data from an IoT device can be automatically delivered to relevant stakeholders or stored for monthly documentation of important information.

In addition to delivering data to the cloud, an IoT device can send information to logistics management platforms, where the information can be analyzed by stakeholders with the help of dashboards and other data visualization tools.

The device can also stream information to AI-powered analytic tools, allowing businesses to use the IoT data to power delivery time or temperature excursion prediction algorithms.

These algorithms can help businesses see a crisis coming based on patterns in IoT data, potentially long before the issue would be obvious to a manager or analyst following the data on their own.

4. Equipment Health Monitoring and Predictive Maintenance

In addition to monitoring shipments directly, IoT devices are also an excellent tool for tracking the performance and health of cold chain equipment — including delivery vehicles, warehouse machinery and even HVAC systems.

Existing IoT performance monitoring systems can track a wide variety of performance and environmental variables. Information from these systems can help businesses track machine performance and health.

For example, an IoT fleet may capture information on a machine’s timing, vibration, temperature and lubrication. If one of these variables leaves its safe operating range, the system can automatically notify site technicians.

IoT devices may also measure local temperature, humidity and CO2 levels, allowing managers of a warehouse or fulfillment center to know if local environmental conditions may be negatively impacting the performance of a site machine.

Equipment monitoring is already a popular application of IoT devices in many industries, meaning that cold chain logistics professionals wanting to adopt the technology have access to a large and growing market of IoT equipment monitoring solutions.

Experts predict that the market is on track to grow quickly over the next few years, meaning that logistics companies will have access to even more options in the near future.

With enough data, businesses can also use IoT devices to lay the foundation for a predictive maintenance system. These are systems that use AI and IoT machine performance data to predict a machine’s maintenance needs.

By analyzing information collected from IoT devices, it’s possible to predict when a machine will need maintenance or repairs.

These systems can also alert managers when they predict that machine failure is imminent — allowing for an emergency shutdown that can help to prevent significant damage to a machine that may result in more expensive repairs and greater downtime.

How IoT Devices May Help to Transform the Cold Chain

With new IoT devices, cold chain logistics providers may be able to streamline their operations. A fleet of IoT devices can provide crucial information on both shipments and the equipment used to move them.

Cold chain professionals are already using IoT devices to prevent spoilage and more effectively monitor shipments as they move from location to location.

IoT devices can also lay the foundation for predictive analytics algorithms that can accurately predict delivery times or machine maintenance needs

_______________________________________________________________

Emily Newton is an industrial journalist. As Editor-in-Chief of Revolutionized, she regularly covers how technology is changing the industry

cold chain

The Future is Cold Chain Solutions: Don’t Risk an Unmanaged Supply Chain

As medication therapies continue to innovate and rely on cold chain delivery, including the COVID-19 vaccine, health systems need to evaluate their programs, leverage technology and ensure their systems are fully managed to best help patients, reduce costs and streamline efficiency. Patient-centered cold chain supply chains focused on last-mile prescription delivery have evolved significantly over the last 15 years. This advancement might be due to the relative novelty of cold chain, which did not play a key role in patient interactions in the past.

Overcoming Initial Growing Pains

Because there has been no template for how to incorporate cold chain solutions into health systems’ and hospitals’ supply chains, they have had to rely on their staff, pharmacists, and partners to create what could be said is an ad hoc program. One of the greatest challenges they faced is determining how to verify a shipment — which product is best? How can a transaction be monitored? Thanks to advancements in technology, we can now use low-energy Bluetooth monitors to track micron-level environmental readings and use systems to verify a shipment’s progress.

Packaging is another area that has made significant strides in the past few decades. The industry has transitioned from status quo styrofoam packaging to making environmentally friendly packaging a priority. These advancements provide us with the resources, systems, and information we need to provide safe, consistent, and timely medication to patients everywhere.

Anticipating Future Innovation

The evolution of medicine forces insurance companies to redefine reimbursement to health systems, which in turn redefines priority around cold chain and accreditation. As researchers continue to advance medicine and cure diseases earlier, the health system supply chain must quickly catch up in support.

The industry will rely even more on mail medication and virtual healthcare in the future, and we can likely anticipate additional innovation soon. From packaging infused with chemicals to help products stay within temperature range during transport to incorporating technology within every shipping container so we have a live monitor to verify the conditions via an app every step of the way, cold supply chains will become even more accessible and reliable.

Investing in a Managed Cold Chain

To streamline current operations and prepare for future innovations, health systems should prioritize a managed cold supply chain, or create a process and leverage technology that delivers full transparency and awareness of inbound and outbound products. A managed system has processes in place to know if and when a shipment gets delivered, is opened in a timely manner and is properly stored. It also utilizes technology controls to track audits, losses and complaints, and fix potential issues before they materialize. Managed chains can be spearheaded within an organization or through a partnership that fills the gaps more easily than a custom process, such as TRIOSE’s Pharmacy IQ, which allows pharmacies to seamlessly incorporate delivery services into their existing structure.

On the other hand, an unmanaged system can be incredibly scary because it leaves systems vulnerable to the unknown. From a patient safety standpoint, when products can’t be verified, medicine to a patient’s home might arrive expired, useless or even dangerous. Unmanaged supply chains are also dangerous from a cost perspective. Consider the cost of specialty medication, which can have values of over $60,000 and be rendered useless because it circled via UPS or FedEx for five days without anyone knowing about it. There is a spectrum of significant risks to an unmanaged cold supply chain — safety, finances, lawsuits, etc.

Cold chain solutions might still be a relatively new frontier for healthcare providers, but there are a number of industry best practices that can be leveraged to maximize success. Prioritizing an assigned accountability person to manage inbound and outbound processes and investing in technology that boosts transparency at every turn aids in avoiding risks, increasing patient safety and improving health systems’ bottom lines.

Envirotainer

Envirotainer’s CryoSure® Transforms Low-Temperature Shipping

The future of cryogenic shipping is now met with a sustainable and revolutionized option thanks to Envirotainer – a leader in secure cold chain solutions for intercontinental shipments of pharmaceuticals bringing more than 30 years of expertise to the industry.

“For many years, the strategy of Envirotainer has been to extend our offering through new innovative products and services and to expand into new segments. This technology fits perfectly into our circular business model and is going to be an important part of our offering going forward. The unique, premium quality, and completely reusable technology matches perfectly into Envirotainer’s global footprint”, says Fredrik Linnér, Chief Business Development Officer at Envirotainer.

The company announced the release of four models representing its latest solution for pharma-related shipping known as the CryoSure® platform (X1, X2, X5 and X11). This platform offers multiple competitive capabilities and elements including  -70oC performance. Particularly beneficial for longer shipments, the CryoSure® technology addresses risks resulting from delays and human errors, ultimately providing safer, sustainable, and more reliable pharmaceutical shipping to benefit patients.

“This new CryoSure® technology takes pharma transportation to the next level by mitigating most if not all risks currently faced when shipping pharma products below -70°C. It is a game-changer and is going to revolutionize this part of the market”, says Mattias Almgren, CryoSure® Platform Executive at Envirotainer.

“Envirotainer has been leading the way ever since the beginning of the temperature-controlled shipments and it is with great pride that we today announce the launch of CryoSure®. We believe CryoSure® fills a substantial gap in the cryogenic -70°C shipment market and significantly improves patient safety”, says Peter Gisel-Ekdahl, CEO at Envirotainer.

Added benefits provided by CryoSure® include duration of three weeks, heat resistance, ease of use, and is known as the most sustainable solution currently on the market.

To learn more about CryoSure®, please visit: https://www.envirotainer.com/cryosure

nansha

PORT OF NANSHA’S LATEST INFRASTRUCTURE PROJECTS PROPEL LOGISTICS SERVICES ACROSS THE GLOBE

Port of Nansha, which is part of the Guangzhou Port Group, is now the fifth-largest port globally and the fastest-growing port in South China. Encompassing the Guangzhou, Foshan, Zhongshan, and Jiangmen regions, the Port of Nansha continues increasing its international presence through strategic infrastructure projects. 

The latest development, which was deemed the International Logistics Center, serves as a mega-warehouse complex accommodating dry and cold warehouses with new on-dock rail connections for incoming manufacturers and vendors.

As part of the overall goal driving the International Logistics Center, Shenzhen Warehousing is officially at max capacity, further reiterating the importance of port diversification to promote a balanced and agile supply chain. The cold chain warehouse will accommodate a total storage capacity of 460,000 tons upon completion–the largest cold chain facility in South China. 

“Port of Nansha Cold Logistics Warehouse, with rail access to/from the Hinterlands and Europe, will undoubtfully be a game-changer in our industry,” stated an International Logistics Center executive.

The port’s developing dry warehouse will support intermodal logistics and general-purpose warehousing services with 1.8 million square feet of total coverage. Nansha’s on-dock railway station will cover 1.05 million square feet of that area as well. Long-term goals for this development will support expansions in consumer goods, distribution, 3PL and e-commerce services.

“We were attracted to Nansha because of its strategic location and business-friendly approach to helping companies like ours to grow,” stated a 3PL anchor tenant. “The opening of this new dry warehouse will drastically save on warehousing cost, origin dray, and reduce lead times for our  e-commerce customers.”

Nansha’s $231 million railway project spans from the Guangzhou Nansha Port in the east, connecting the Beijing Guangzhou Railway via the Guangzhou-Zhuhai Railway to the north and the Guizhou-Guangzhou, Nanning-Guangzhou and Liuzhou-Zhao Qing railway to the west. This massive project is known as the only on-dock rail in South China and serves as a gateway into the Belt & Road Initiative.

Meeting unprecedented demand brought on by the pandemic inspired the latest addition of a fourth new terminal offering fully automated capabilities starting this year. The construction of the new terminal will support the addition of 5 million TEUs to Nansha’s container throughput capacity and increasing the total ship-to-shore crane count from 65 to 78.

Port of Nansha America CEO and Founder John L. Painter confirmed they will continue to capitalize on additional growth opportunities, particularly to and from the North American market, which is requesting more ocean services. In 2020, Nansha saw a 55.4 percent increase in TEU movement to/from North America compared to 2019 reports, bringing the total number of TEUs moved globally to more than 17.5 million of the 23.51 million TEUs Guangzhou Port Group moved globally in 2020.

berry

Global Berry Trade Intensifies Driven by Rasing Demand for Blueberry and Raspberry

IndexBox has just published a new report: ‘World – Berry – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The global berry imports rose by +2.6% y-o-y to 2.9M tonnes, reaching $14.8B in 2020. Global imports of blueberries, cranberries, raspberries and blackberries have been rising steadily over the last decade. The U.S., Germany, China, Canada, Hong Kong SAR, the UK and the Netherlands remain the largest markets for imported berries. Spain emerged as the fastest-growing berry importer worldwide. Spain, Chile, the U.S. and Mexico constitute the largest berry exporters in the world. 

Global Berry Imports by Country

For the seventh year in a row, global berry imports increased by +2.6% to 2.9M tonnes in 2020. It indicated a strong increase from 2012 to 2020: the volume increased at an average annual rate of +5.4% over the last eight years. In value terms, berry imports rose significantly to $14.8B (IndexBox estimates) in 2020.

In 2020, the U.S. (689K tonnes), distantly followed by Germany (309K tonnes), China (236K tonnes), Canada (225K tonnes), Hong Kong SAR (172K tonnes), the UK (164K tonnes) and the Netherlands (153K tonnes) were the major importers of berries, together constituting 67% of total imports. Russia (119K tonnes), France (96K tonnes), Spain (91K tonnes), Italy (70K tonnes) and Austria (55K tonnes) followed a long way behind the leaders.

In 2020, the most prominent spike in the volume of purchases from abroad was recorded in Spain (+16.3% y-o-y). Spain emerged as the fastest-growing importer in the world, with a CAGR of +20.8% from 2012-2020.

In value terms, the U.S. ($3.8B) constitutes the largest market for imported berries worldwide, comprising 26% of global imports. The second position in the ranking was occupied by China ($1.8B), with a 12% share of global imports. It was followed by Germany, with an 8.9% share.

In 2020, the average berry import price amounted to $5,129 per tonne, growing by +5.8% against the previous year. Last year, the most notable rate of growth in terms of prices was attained by the U.S., while the other global leaders experienced more modest paces of growth.

Global Berry Imports by Type

The imports of the three major types of berries, namely strawberries, cherries and blueberries and cranberries, represented more than two-thirds of total imports. It was distantly followed by raspberries and blackberries (467K tonnes), which make up a further 16% share of total imports.

In value terms, the largest types of imported berries were blueberries and cranberries ($4.3B), cherries ($3.9B) and raspberries and blackberries ($3.4B), with a combined 78% share of global imports. Strawberries in tandem with currants and gooseberries lagged somewhat behind, together accounting for a further 22%.

From 2012 to 2020, the most notable rate of growth regarding the volume of purchases, amongst the leading imported products, was attained by blueberry and cranberry (+11.9%). Raspberry and blackberry followed these products with a CAGR of +11.5% from 2012-2020.

Largest Berry Suppliers Worldwide

Spain (437K tonnes), Chile (381K tonnes), the U.S. (299K tonnes) and Mexico (280K tonnes) represented roughly 50% of total exports of berries in 2020. It was distantly followed by Hong Kong SAR (181K tonnes), the Netherlands (152K tonnes) and Peru (151K tonnes), together comprising a 17% share of total exports. Turkey (115K tonnes), Morocco (99K tonnes), Canada (90K tonnes), Greece (64K tonnes), Belgium (49K tonnes) and Poland (45K tonnes) held a minor share of total exports.

In value terms, Chile ($2.4B), Spain ($1.7B) and the U.S. ($1.6B) appeared to be the countries with the highest levels of exports in 2020, with a combined 43% share of global exports. Mexico, the Netherlands, Peru, Hong Kong SAR, Morocco, Belgium, Turkey, Canada, Poland and Greece lagged somewhat behind, together accounting for a further 44%.

Source: IndexBox Platform