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GCCA Celebrates FSIS Decision to Lift 50-Mile Limit for Meat Inspection Facilities

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GCCA Celebrates FSIS Decision to Lift 50-Mile Limit for Meat Inspection Facilities

The Global Cold Chain Alliance (GCCA), representing temperature-controlled logistics companies worldwide, has welcomed the Food Safety Inspection Service’s (FSIS) decision to abolish the 50-mile radius restriction on import inspection facilities for meat and poultry.

This policy revision, achieved through a joint effort by the GCCA and the Meat Import Council of America (MICA), eliminates a decades-old rule that limited facilities designated as “Import Houses” (I-Houses) to locations within 50 miles of a U.S. Port of Entry.

What This Change Means

I-House status allows storage warehouses to hold goods awaiting FSIS import inspection. Achieving this designation requires compliance with stringent standards, including product separation and on-site inspection capabilities. Removing the 50-mile restriction offers greater flexibility, enabling facilities further inland to serve as I-Houses, streamlining logistics and reducing inefficiencies.

GCCA President and CEO Sara Stickler praised the move, stating:
“This decision reflects a common-sense approach to modern supply chains. It will allow our members to enhance operational efficiency and better meet the growing demand for import services. Our industry remains committed to ensuring high standards of food safety while driving greater supply chain efficiency.”

Why the 50-Mile Rule Had to Go

The original policy, created decades ago, was intended to simplify inspection logistics but failed to account for modern advancements in supply chain technology. Today, real-time tracking and digital traceability mitigate the concerns that initially justified the rule.

GCCA and MICA highlighted these advancements in their petition, noting that the industry has shifted towards utilizing inland ports of entry. They argued that inspection facilities should align with these evolving transportation trends.

New Evaluation Criteria

Rather than adhering to arbitrary geographic limits, FSIS will now evaluate I-House applications based on factors such as:

  1. Availability of inspection personnel.
  2. Anticipated product volumes.
  3. Operating hours of the facility.

This tailored approach ensures efficient use of FSIS resources while maintaining high standards for food safety.

A Step Toward Smarter Supply Chains

By removing unnecessary restrictions, FSIS has opened the door for more adaptive and efficient inspection processes. GCCA members are now better positioned to meet market demands while maintaining robust compliance standards.

This decision represents a milestone in regulatory modernization, aligning policies with the realities of today’s global supply chains and reinforcing the U.S. food system’s reputation for safety and innovation.

global trade cold chain

Cold Chain Tracking and Monitoring Market Worth USD 24.1 bn by 2032

Introduction

As stated by Market.us, The Global Cold Chain Tracking and Monitoring Market is set for significant growth, projected to reach USD 24.1 billion by 2033, up from USD 6.6 billion in 2023. This growth represents a robust CAGR of 15.5% over the forecast period from 2023 to 2032.  This growth is driven by the increasing demand for perishable products and heightened regulatory standards across various industries. 

Read also: North American Ports Invest in Cold Storage to Capture Growing Reefer Market

The market encompasses various technologies and components, such as hardware systems including sensors and data loggers, and software solutions that offer real-time monitoring capabilities​ In 2022, North America led the market, capturing a 35.2% share and generating approximately USD 2.0 billion in revenue. This region’s dominance can be attributed to strong infrastructure, high consumer demand for safe, fresh products, and leading advancements in tracking technology.

Cold chain tracking and monitoring involve sophisticated systems that ensure the safety and quality of temperature-sensitive products such as pharmaceuticals, food, and chemicals during storage and transportation. These systems employ various technologies, including Internet of Things (IoT) devices, sensors, and software, to maintain and monitor optimal conditions throughout the supply chain, reducing the risk of spoilage and ensuring compliance with global standards​.

The cold chain tracking and monitoring market is experiencing significant growth due to the increasing demand for perishable goods across global markets. This market encompasses a range of solutions, including hardware like sensors and RFID devices, and software that provides real-time data and analytics to manage the conditions of goods while in transit or storage. Companies operating in pharmaceuticals, food and beverage, and other industries rely heavily on these technologies to meet stringent regulatory standards and manage the logistics of temperature-sensitive products effectively.

Key takeaways revealed that the Hardware segment led the market by a wide margin, holding over 76.4% of the market share in 2022 due to the high demand for robust tracking equipment. Within applications, Transportation took the lead with a 62.8% share, showcasing the importance of real-time tracking across logistics operations. The Food & Beverages sector also stood out as the top end-use industry, securing 76.8% of the market share in 2022, highlighting the critical need for tracking systems to ensure safe storage and delivery in this industry. 

Key drivers for the growth of the cold chain tracking and monitoring market include the expanding pharmaceutical sector and the rising need for efficient logistics systems to ensure the integrity of temperature-sensitive drugs. The integration of advanced technologies like AI and IoT enhances operational efficiencies by providing real-time data and predictive analytics, thereby reducing waste and improving supply chain transparency.

The demand in the cold chain tracking and monitoring market is significantly propelled by the pharmaceutical and food industries, where there is a critical requirement to maintain specific environmental conditions to preserve product quality and safety. Additionally, the rapid adoption of IoT and cloud-based technologies in logistics further fuels this demand, providing enhanced tracking and real-time monitoring capabilities.

Technological innovations play a pivotal role in shaping the cold chain tracking and monitoring landscape. Real-time monitoring systems, IoT-enabled devices, and AI algorithms optimize logistics operations and predict potential disruptions, thus enhancing the efficiency and reliability of cold chain logistics. These technologies not only support compliance with stringent regulations but also help in extending the shelf life of products and maintaining high safety standards throughout the supply chain.

Opportunities in the cold chain tracking and monitoring market are vast, particularly in the transportation and pharmaceutical segments, where technological advancements can lead to substantial improvements in monitoring and managing logistics. The integration of AI for route optimization and maintenance predictions presents further potential for market expansion​.

Suggested Reading – Internet of Things (IoT) Market Size, Share | CAGR of 21%

Key Market Segmentation

Component Analysis

In 2022, the hardware segment emerged as the powerhouse of the Cold Chain Tracking and Monitoring Market, accounting for over 76.4% of the market share. This dominant position of hardware reflects the critical role that physical devices, such as temperature sensors, GPS trackers, and data loggers, play in maintaining the integrity of temperature-sensitive goods during transit and storage. 

These devices are foundational in providing real-time, reliable data on temperature, humidity, and location, which are crucial for industries reliant on cold chain logistics. As companies push for greater visibility and control over their supply chains, hardware solutions have become indispensable for monitoring every stage of the cold chain. The preference for hardware also highlights a growing trend toward sophisticated technology in cold chain management, where industries are investing in durable, accurate equipment to ensure compliance and reduce risks associated with temperature excursions.

Solution Analysis

In 2022, transportation solutions took the lead within the Cold Chain Tracking and Monitoring Market, capturing more than 62.8% of the market share. This emphasis on transportation solutions underscores the unique challenges of maintaining a seamless cold chain during the movement of goods. From refrigerated trucks to insulated containers, transportation solutions are central to preventing temperature fluctuations that could compromise the quality of sensitive goods. 

As global demand for fresh and perishable products grows, companies are increasingly focused on robust transportation monitoring to ensure that goods maintain required conditions throughout the journey. The dominance of transportation solutions also points to a sector-wide shift toward integrated systems that allow companies to track goods in real-time, minimize risks, and provide end-to-end accountability to customers and regulators.

End-User Analysis

In 2022, the food and beverage segment held the lion’s share in the Cold Chain Tracking and Monitoring Market, capturing more than 76.8% of the market. This substantial market share reflects the critical need for precise temperature management within this industry, where any deviation can impact product safety, quality, and shelf life. Consumers today are increasingly health-conscious, demanding fresh, high-quality food, which has driven food producers and distributors to adopt advanced cold chain solutions. 

Additionally, regulatory bodies worldwide enforce stringent guidelines for food storage and transportation, pressing the food and beverage industry to maintain robust monitoring systems. This dominance highlights how essential cold chain tracking has become for food companies looking to ensure product integrity from farm to table, catering to consumer expectations and regulatory standards alike.

Source of information- https://market.us/report/cold-chain-tracking-and-monitoring-market/

Emerging Trends

  • IoT Integration: The proliferation of Internet of Things (IoT) devices has become a major trend, enhancing real-time tracking capabilities. IoT sensors provide continuous temperature and humidity data, crucial for maintaining product integrity across the cold chain, from storage to last-mile delivery​.
  • Blockchain for Transparency: Blockchain technology is increasingly used in cold chain monitoring to offer a transparent and immutable record of data, improving traceability, and allowing all stakeholders to verify product history, thus preventing counterfeiting, particularly in the pharmaceutical sector​.
  • Sustainability Initiatives: With increasing regulatory pressure, companies are focusing on sustainable practices, such as optimizing routes and reducing energy use in cold storage facilities, to lower the carbon footprint of cold chains​.
  • Enhanced Hardware Capabilities: Advanced hardware, including sensors and RFID devices, is essential in the sector. These tools have improved accuracy, longer battery life, and robust data storage, facilitating prolonged monitoring during transportation​.
  • AI and Predictive Analytics: Artificial intelligence and predictive analytics are helping companies anticipate disruptions by analyzing temperature fluctuations and other risk factors, allowing for proactive solutions to maintain product safety and quality​.

Top Use Cases

  • Pharmaceutical and Healthcare: Pharmaceuticals, particularly vaccines and biologics, require strict temperature controls. Cold chain monitoring ensures products are stored and transported within safe limits to maintain their efficacy, with healthcare regulations further driving this adoption​.
  • Food and Beverage Industry: Perishable food items, including fresh produce, dairy, and seafood, rely heavily on cold chain monitoring to ensure quality and safety from farm to consumer, especially with the rising consumer demand for fresh, high-quality products.
  • Logistics and Warehousing: Cold chain monitoring is critical in logistics to track environmental conditions during long-distance shipping, as disruptions in temperature can result in costly product losses. This application is seeing significant growth due to the global expansion of food and pharmaceutical supply chains​.
  • Chemical Products: Certain chemicals are sensitive to temperature variations, necessitating close monitoring throughout the transportation process. This segment benefits from advanced tracking technologies to ensure compliance with safety standards and to prevent hazardous incidents​.
  • E-commerce and Online Grocery Delivery: The rise in e-commerce and online grocery services has accelerated the need for robust cold chain solutions to ensure product freshness and quality upon delivery, with companies investing in real-time tracking for efficient last-mile delivery​.

Conclusion

In conclusion, the cold chain tracking and monitoring market is poised for substantial growth, driven by the rising demand for high-quality perishable goods and the critical need for temperature-sensitive logistics across sectors like food and pharmaceuticals. As regulatory requirements tighten and consumer expectations for fresh and safe products increase, companies are rapidly adopting advanced technologies to meet these standards. Innovations in IoT, blockchain, and AI are transforming the market by enabling real-time data access, improving transparency, and enhancing supply chain efficiency. This evolving landscape presents immense opportunities for businesses and investors as the cold chain industry embraces these advancements to ensure product quality and safety at every stage.

Lineage Logisitcs handles cold shipments of export cargo and import cargo in international trade storage.

North American Ports Invest in Cold Storage to Capture Growing Reefer Market

The refrigerated cargo industry has emerged as a top growth sector for North American ports, driving new investment in cold storage facilities. Speaking at the American Association of Port Authorities’ annual meeting, industry leaders highlighted the surge in refrigerated cargo and the need to replace outdated infrastructure to accommodate this high-margin market.

Read also: Cold Storage Logistics makes it to the Nasdaq

With many North American cold storage sites aging—over half are more than 40 years old—operators like Cold Summit Development are leading the charge to replace inefficient facilities with modern, port-based warehouses. “The bulk of existing cold storage facilities need upgrades to meet today’s standards in design and cooling efficiency,” explained Eric Casey, Cold Summit’s executive vice president.

The Port of Wilmington, North Carolina, exemplifies this trend, with new cold storage developments aimed at balancing local cargo flows. Brian Clark, North Carolina Ports’ executive director, noted the Port’s strategy to support both import and export demands, handling everything from export-bound poultry to imported produce for the mid-Atlantic region.

These cold storage projects not only make better use of port land but also offer quick returns for investors, with payback periods as short as three to four years. Additionally, as reefer cargo continues to grow at an annual rate of 6-8%, the reefer boom is set to redefine the cold chain infrastructure across North America, catering to evolving consumer preferences and boosting port revenues in the process.

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Why Demand for Cold Chain Logistics in Pharmaceuticals is Growing Rapidly

With an increased focus on temperature-sensitive medications and vaccines, pharmaceutical companies, healthcare facilities, and logistics providers are prioritizing cold chain logistics packaging. The sensitive nature of biologics and certain vaccines requires that they be stored and transported at specific temperatures to maintain their efficacy. This shift towards controlled logistics packaging is crucial to prevent product degradation, making cold chain packaging a necessity for the pharmaceutical industry.

Read also: Why Sustainable Cold Chains Are the Future of Global Food Transport

The pharmaceutical cold chain logistics packaging market is experiencing an impressive expansion, primarily driven by the increasing demand for temperature-sensitive pharmaceuticals, vaccines, and biologics. As companies prioritize safe storage and transport for these delicate products, there is a strong shift towards innovative cold chain solutions that ensure quality and efficacy. This article explores the factors driving market growth, the importance of government investments, the role of technological advancements, and regional market dynamics.

Impact of the Online Ordering System on Cold Chain Logistics

The rise in online ordering systems for medications has also contributed to the growth of cold chain logistics packaging. As consumers and healthcare providers increasingly opt for online ordering and direct-to-patient deliveries, the demand for effective temperature-controlled packaging solutions has risen. By ensuring safe, reliable delivery through cold chain logistics, providers can cater to a broader market and ensure the integrity of pharmaceutical products.

Government Investments as a Catalyst for Market Growth

Government initiatives and private investments in healthcare infrastructure significantly bolster the pharmaceutical cold chain logistics packaging market. These investments aim to improve access to essential medicines, strengthen the biotechnology and pharmaceutical sectors, and enhance patient treatment options. For instance, government-backed healthcare programs often prioritize the establishment of cold chain facilities to ensure temperature-sensitive drugs reach remote areas without compromising quality.

Ensuring Compliance with GDP Guidelines

A primary objective of government and private investments is to ensure that pharmaceutical cold chain logistics adhere to Good Distribution Practice (GDP) guidelines. This includes maintaining the required temperature range across different modes of transportation, such as air, sea, and land. Compliance with these guidelines is essential for reducing wastage and enhancing product safety, ultimately leading to increased trust among healthcare providers and patients.

Demand for Hygienic and Temperature-Maintained Packaging Solutions

Hygienic and temperature-controlled packaging solutions are at the forefront of pharmaceutical cold chain logistics. Hygienic packaging protects products from contamination, while temperature-maintained packaging solutions ensure drugs remain within the required temperature range throughout transit.

Growing Need for Reefer Vessels in Pharmaceutical Logistics

As the demand for temperature-sensitive pharmaceuticals continues to rise, the need for reefer vessels in the pharmaceutical industry is also increasing. These refrigerated containers are vital for transporting large volumes of temperature-controlled products across long distances, ensuring that pharmaceuticals remain potent and effective upon reaching their destination. This demand is further accelerated by the global expansion of frozen warehousing facilities, which play a crucial role in the market.

Technological Advancements: Enhancing Efficacy and Consistency

Innovation in temperature-maintaining products and monitoring components is driving significant improvements in pharmaceutical cold chain logistics. From advanced sensors that track temperature fluctuations to innovative packaging materials that insulate products during transit, technological advancements are ensuring more consistent and reliable cold chain operations.

Role of Monitoring Components in Cold Chain Integrity

The development of sophisticated monitoring devices allows companies to track real-time temperature data and alert stakeholders to any deviations. This real-time data monitoring is especially crucial for long-distance and international shipments, where variations in external temperature are more likely to occur. By proactively addressing temperature deviations, companies can ensure that pharmaceutical products maintain their efficacy, leading to higher levels of trust from healthcare providers.

Regional Market Insights: North America Leads While Asia-Pacific Rises

The pharmaceutical cold chain logistics packaging market is expanding globally, but regional dynamics vary significantly. North America currently dominates the market, while Asia-Pacific shows promising growth, driven by factors unique to each region.

North America’s Dominance in the Pharmaceutical Cold Chain Market

North America, led by the United States and Canada, held the largest share in the pharmaceutical cold chain logistics packaging market in 2023. This dominance can be attributed to the significant expansion of pharmaceutical companies in these regions, which heavily invest in research and development. Moreover, North American companies prioritize safe and efficient supply chains, bolstering their position in the global market.

Asia-Pacific: The Fastest-Growing Market for Cold Chain Logistics

Asia-Pacific is projected to witness the fastest growth rate in the coming years. Countries like China, Japan, India, South Korea, and Thailand are emerging as major hubs for pharmaceutical manufacturing and export. With government initiatives aimed at improving healthcare infrastructure and addressing health concerns, these countries are investing in cold chain logistics to meet international standards and expand their reach. This growth is further supported by local governments prioritizing healthcare improvements, boosting the demand for efficient cold chain packaging solutions.

Future Trends: The Role of Sustainable Packaging and Technological Innovation

The future of pharmaceutical cold chain logistics packaging lies in sustainable and eco-friendly solutions. As global awareness around environmental conservation grows, the industry is adopting biodegradable and reusable packaging options to reduce waste. In addition, advancements in digital technologies, such as IoT-enabled tracking and AI-based predictive analytics, will play a significant role in ensuring seamless logistics operations.

Eco-Friendly Packaging Solutions: A Shift Towards Sustainability

Companies are increasingly focusing on recyclable and biodegradable materials for packaging, reducing their environmental footprint while maintaining the high standards required for pharmaceutical packaging. Sustainable packaging solutions not only appeal to environmentally-conscious consumers but also help companies comply with regulations on waste management and carbon emissions.

IoT and AI Integration for Enhanced Cold Chain Logistics

The integration of IoT and AI in cold chain logistics is set to enhance the overall efficiency of temperature-controlled packaging. IoT devices provide real-time tracking and monitoring, enabling logistics providers to take proactive measures in case of any discrepancies. Meanwhile, AI-based analytics can forecast demand patterns, optimize routes, and anticipate potential challenges in cold chain logistics, ultimately driving down costs and improving service reliability.

About The Author

Asmita Singh is a distinguished author and consultant in the packaging industry, recognized for her unwavering passion for knowledge discovery and her commitment to providing actionable insights. She holds an MBA from the University of Mumbai and a degree in Packaging Engineering from the Indian Institute of Packaging (IIP), equipping her with a solid foundation in both business and technical aspects of packaging. With extensive experience in packaging consulting, Asmita has successfully implemented advanced research methodologies across various packaging categories, including flexible packaging, rigid packaging, sustainable packaging, and smart packaging. She generates high-quality data and delivers meaningful results that drive innovation and efficiency. Her expertise spans the globe, offering valuable consulting services to businesses seeking to enhance their packaging strategies. Asmitas work is characterized by a dedication to excellence and a keen understanding of the latest trends and technologies shaping the future of packaging.

Source: https://www.towardspackaging.com/insights/pharmaceutical-cold-chain-logistics-packaging-market-sizing

global trade cold chain food

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 

gcca 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.

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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.

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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.

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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

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