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Benefits of Cold Chain Warehousing Solutions

cold chain

Benefits of Cold Chain Warehousing Solutions

Not many people are familiar with cold chain warehouse solutions. However, if you are in any type of business dealing with perishable items, this is right up your alley. Cold chain warehousing is used to store items that need to be left in cool surroundings and that have a short shelf life. By using them you can prevent your items from spoiling, being attacked by insects and rotting. So, the goal is clear. Life of certain items needs to be prolonged and one of the most effective ways to accomplish this is by using cold-chain warehousing, also known as cold storage or refrigerated warehousing.

Types of products that are in need of cold chain warehousing 

First, you need to know which items are suitable to be stored in such a place. Not all items respond well to cool temperatures. The last thing you want is investing in something that you do not need, like cold storage. For example, after transporting fruits and vegetables it would be a great solution to store them in cold storage space. Hence, if your business involves some of these products you are on the right path of finding the best possible solution for your business load.

Supermarkets and other stores have a tendency to use cold storage for a lot of their goods that are not in store for sale. 

3 main groups of goods 

-Foods that are considered to be alive – fruits and vegetables

-Processed foods that are considered to be no longer alive – fish, meat and any other products that contain the fish and meat

-Items that do not necessarily need be stored in a cool or freezing atmosphere, but remain the freshest and of highest quality while in it (tobacco, beer, some oils, some types of flour, etc.)

There are two main options 

One of the great things about cold storage units is that there are many different variations. But, there are two main types of systems. First comes the vapor absorption system (VAS), followed by vapor compression system (VCS). These two systems are not cardinally different from one another. Yet, there are some important differences that need to be acknowledged. The main one being the technique in which energy input is fed to the system. To be sure you are making the right choice when making this large purchase, we strongly advise you to speak to an expert. Sooner or later you will have to learn the difference between the two systems.

Main benefits of cold chain warehouse solutions 

Still, you might not be persuaded and convinced that this type of storage will improve your business. Nonetheless, after reading these benefits, it is very likely that the next thing you do will be exploring your options in purchasing a cold storage unit. Cold chain warehousing solutions in combination with transport technologies for air cargo can be one of the best solutions for storing and moving perishable goods.

Fruits and vegetables are items that are very difficult to store because they are very sensitive to temperature and even humidity. 

The array of usage doesn’t limit you 

One great thing about cold storage is that the temperature within the unit can be easily adjusted. That isn’t all. In addition to temperature, humidity can also be controlled. Humidity, just like temperature, can be a huge factor in saving the freshness and quality of the items. These two benefits, with an airtight closing mechanism, make this a great storage option.

Customize to fit your needs 

More modern units can be customized so the temperature range and size of the unit specifically fit your storage needs. For instance, if you do not need freezing conditions, but dry and cool, your needs can be accommodated. This is a perfect option for those that import oils and fats. As a cherry on top, your unit can be fixed or portable. There is an abundance of options. All you have to do is choose the bests options for your business requirements.

Great backup and organizing option

This can be best described in an example. For argument’s sake, let’s say you are a restaurant owner. One day, out of the blue, the power shuts down and there is no electricity in your restaurant. If you are a fan of cold chain warehousing solutions, you might survive the electricity outage without any loses. If all goods are quickly moved and expedited to the cold storage space, it is very likely they will not lose their value and end up as garbage.

In the long run, you are saving money 

The initial investment is not small, but it will certainly save you money in the long run. Surely you know how much goods you’ve tossed in the past years. Imagine preserving and using or selling at least half of what you tossed. That can add up financially. Minimize waste and give yourself an option to purchase items in bigger bulks for a significantly lower price.

Investing in cold storage might initially turn out to be a financial hit, but it will pay off in the long run. Alt text: suitcase filled with dollar bills and with other bills around it.

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Danny Segno is a New York native, but currently, she lives in Boynton Beach Florida. For the past two years, she has been working for Authority Moving Group, a professional moving company. Danny enjoys her job because she likes working with people and helping them. Since she is a customer care specialist, she focuses on customer satisfaction. 

 

frozen fruit

European Frozen Fruit Market Posted Sixth Consecutive Year of Growth and Reached $5.3B in 2018

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

The revenue of the frozen fruit market in the European Union amounted to $5.3B in 2018, increasing by 2.3% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price).

The market value increased at an average annual rate of +3.0% from 2007 to 2018; the trend pattern indicated some noticeable fluctuations being recorded over the period under review. The growth pace was the most rapid in 2010, with an increase of 10% y-o-y. Over the period under review, the frozen fruit market attained its maximum level in 2018, and is expected to retain its growth in the immediate term.

Production in the EU

In 2018, approx. 1.3M tonnes of frozen fruits were produced in the European Union; lowering by -2.8% against the previous year.

Exports in the EU

In 2018, frozen fruit exports in the European Union amounted to 783K tonnes, declining by -4.1% against the previous year. The total export volume increased at an average annual rate of +1.1% from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. In value terms, frozen fruit exports stood at $1.6B (IndexBox estimates) in 2018.

Exports by Country

Poland represented the major exporting country with an export of around 272K tonnes, which resulted at 35% of total exports. The Netherlands (117K tonnes) occupied the second position in the ranking, followed by Belgium (73K tonnes), Spain (65K tonnes) and Germany (48K tonnes). All these countries together occupied near 39% share of total exports. Italy (32K tonnes), Greece (29K tonnes), France (20K tonnes), Sweden (17K tonnes), Bulgaria (15K tonnes) and the UK (12K tonnes) took a relatively small share of total exports.

Poland experienced a relatively flat trend pattern of frozen fruits exports. At the same time, the Netherlands (+4.3%), Bulgaria (+4.2%), Spain (+4.1%), the UK (+3.6%), Germany (+3.6%), Italy (+2.9%), Sweden (+2.6%) and France (+1.8%) displayed positive paces of growth. Moreover, the Netherlands emerged as the fastest growing exporter in the European Union, with a CAGR of +4.3% from 2007-2018. Belgium and Greece experienced a relatively flat trend pattern. From 2007 to 2018, the share of Germany, Spain and the Netherlands decreased by -1.9%, -3% and -5.5% percentage points, while the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Poland ($489M) remains the largest frozen fruit supplier in the European Union, comprising 31% of total frozen fruit exports. The second position in the ranking was occupied by the Netherlands ($226M), with a 14% share of total exports. It was followed by Belgium, with a 9.8% share.

Export Prices by Country

In 2018, the frozen fruit export price in the European Union amounted to $2,009 per tonne, growing by 6.7% against the previous year. Over the period under review, the frozen fruit export price continues to indicate a relatively flat trend pattern.

There were significant differences in the average export prices amongst the major exporting countries. In 2018, the country with the highest export price was Sweden ($2,908 per tonne), while Greece ($1,588 per tonne) was amongst the lowest. From 2007 to 2018, the most notable rate of growth in terms of export prices was attained by Spain, while the other leaders experienced more modest paces of growth.

Imports in the EU

In 2018, approx. 1.2M tonnes of frozen fruits were imported in the European Union; remaining relatively unchanged against the previous year. The total import volume increased at an average annual rate of +1.3% from 2007 to 2018; the trend pattern remained relatively stable, with only minor fluctuations being recorded over the period under review. In value terms, frozen fruit imports amounted to $2.4B (IndexBox estimates) in 2018.

Imports by Country

In 2018, Germany (323K tonnes), distantly followed by France (183K tonnes), the Netherlands (122K tonnes), Belgium (119K tonnes), Poland (98K tonnes) and the UK (79K tonnes) were the key importers of frozen fruits, together constituting 77% of total imports. The following importers – Italy (47K tonnes), Austria (46K tonnes), Sweden (37K tonnes), the Czech Republic (23K tonnes), Denmark (20K tonnes) and Lithuania (18K tonnes) – together made up 16% of total imports. From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by the Czech Republic, while the other leaders experienced more modest paces of growth.

In value terms, the largest frozen fruit importing markets in the European Union were Germany ($566M), France ($382M) and Belgium ($233M), with a combined 49% share of total imports. The Netherlands, Poland, the UK, Austria, Italy, Sweden, Denmark, the Czech Republic and Lithuania lagged somewhat behind, together accounting for a further 42%.

Import Prices by Country

In 2018, the frozen fruit import price in the European Union amounted to $1,984 per tonne, jumping by 6.2% against the previous year. Over the period under review, the frozen fruit import price continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2011, an increase of 23% y-o-y. Over the period under review, the import prices for frozen fruits reached their maximum at $2,218 per tonne in 2008; however, from 2009 to 2018, import prices failed to regain their momentum.

Import prices varied noticeably by the country of destination; the country with the highest import price was Sweden ($2,638 per tonne), while Germany ($1,752 per tonne) was amongst the lowest. From 2007 to 2018, the most notable rate of growth in terms of import prices was attained by the Netherlands, while the other leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

cold chain

Cold Chain Logistics Survey Reveals Biopharma Trends

Global temperature-controlled packaging provider Peli BioThermal shared three key insights revealed in the latest survey conducted on opinion leaders within the biopharmaceutical industry. The company’s 2019 Biopharma Cold Chain Logistics Survey took a granular look at current trends, technologies, and operations among cold chain industry players and exactly how much these trends are impacting the supply chain.

Among the most surprising trends uncovered in the survey confirmed cold-chain excursions are more common than one might assume. A total of 41 percent of survey respondents reported having multiple temperature-controlled excursions exceeding four degrees. More than half of respondents confirmed shipping internationally, adding pressure to the increasing demand for transportation optionality and flexibility within climactic zones.

Additionally, increasing quality demands made the list. As cold chain logistics increase among shippers, risk increases as well. With close to half (44.6 percent) of companies revealing multiple excursions per year, temperature and location tracking is high on the list of concerns to ensure high volumes are handled accurately.

Source: Peli BioThermal

“As strong growth continues across the global pharmaceutical industry, the sub-category of temperature-controlled products is surging ahead — growing at twice the rate of the industry overall,” said David Williams, President of Peli BioThermal. “Our survey reveals what matters most to key biopharma leaders — and what it means for the future — as the industry deals with the rapid growth and complexity of temperature-controlled logistics.” 

Source: Peli BioThermal

Among the most common modes of transportation include air and ground with the option for sea and rail due to experience an increase among shippers, according to the survey.

Reusable containers garnered 79 percent respondent approval, adding that although pricier they are worth the investment and worth it over single-use containers. A total of 37.6 percent confirmed the implementation of reusable containers, with 25 percent currently vetting options.

The final piece of the results came from nearly 70 percent of respondents focusing on total cost of ownership (TCO) optimization as important. This consideration would primarily offset market pressures such as competition  and margin, but proactive measures in defining TCO have not gathered momentum just yet. Only 10 percent of respondents confirmed exploring basic packaging costs and rates. 

To read the full 2019 Biopharma Cold Chain Logistics Survey report, visit www.pelicanbiothermal.com/survey.

CEIV pharma

DACHSER India Branches Boast CEIV Pharma Certification

DACHSER’s Mumbai and Hyderabad branches are among the few companies in India to receive the prestigious Center of Excellence for Independent Validators in Pharmaceutical Logistics certification  recognizing exemplary operations in transporting Life Science and Healthcare (LSH) products. Such products are both temperature and time-sensitive, requiring meticulous, accurate, and high standards in monitoring and handling to ensure product quality.

“Congratulations to DACHSER India on their CEIV Pharma certification. The time and temperature sensitive nature of pharmaceutical products means the highest standards are needed to make sure product integrity is maintained for such shipments,” said Vinoop Goel, IATA’s Regional Director for Airports and External Relations, Asia-Pacific. “With India being a major supplier of pharmaceutical products, DACHSER India’s CEIV Pharma certification will give pharmaceutical companies confidence and assurance that their cold-chain logistics requirements are being met.”

Difficult to obtain, the CEIV Pharma certification is earned by companies implementing efficient, safe, and excellence in transporting LSH products. Currently, DACHSER’s Hyderabad branch is one of two companies in the region to boast the accreditation. Through a strenuous audit ensuring compliance among all all facilities, equipment, operations and staff, DACHSER applied for the certification with the goal of adding to its already extensive history in handling pharma products.

“Obtaining the CEIV Pharma certification is an important milestone for DACHSER India. It emphasizes our continued focus for providing highly reliable logistic services to our valued customers in the LSH segment”, said Huned Gandhi, Managing Director, Air & Sea Logistics for the Indian Subcontinent. “Quality and efficiency have always been the cornerstones for our success and our teams are extremely proud to receive this accreditation from IATA.”
“By way of CEIV certification at our Mumbai and Hyderabad branches, DACHSER India has made a big step forward to further enhance its operational and technical competencies in serving our LSH customers,” concluded Zarksis Munshi, Head of Air Freight, Air & Sea Logistics India Subcontinent.

How Drones Could Transform Biopharmaceutical Supply Chain Innovation

Drones have made the news once again. This time, to aid in swift and reliable delivery of life-saving temperature-controlled medications required in emergency situations. A collaboration between Direct Relief, Merck (MSD outside the U.S. and Canada), Softbox, AT&T and Volans-i is pushing the boundaries and capabilities of UAVs- also known as drones, and confirmed a successful fourth pilot proof-of-concept mission was conducted in the Bahamas last week.

“This successful pilot demonstrates the potential of innovative UAV technology to aid in delivery of temperature-dependent medicines and vaccines to people who critically need them,” said Craig Kennedy, senior vice president, Supply Chain, at Merck. “The potential of UAV technology is just one of the many areas in which we are innovating across our business and our supply chain to maximize our ability to save and improve lives around the world.”

As the partners focus on biopharmaceutical supply chain innovation and strengthening humanitarian efforts,  concerns on how to  overcome challenges in global regulations are considered in order to solidify official application in various global markets. Previous test flights were conducted in Switzerland and Puerto Rico.

“Experience and research consistently show that those most at risk of health crisis in disasters live in communities which are likely to be cut off from essential health care due to disruption of transportation and communications,” said Andrew Schroeder, who, among other responsibilities, leads analytics programs, data visualization, and geospatial analytics for Direct Relief.

“Drone delivery is one of the most promising answers to this problem. More remains to be done to operationalize medical cargo drones in emergencies. But successful tests like this one demonstrate that remarkable new humanitarian capabilities are emerging quickly.”

Real-time data analysis and collection in conjunction with fully autonomous controlling enabled test flight success. Additionally, the cold-chain technology ensured temperatures as low as -70 degrees Celsius were maintained, all while providing accurate temperature tracking and reporting.

Photo credit: Direct Relief

“Our goal is to revolutionize the way goods and people move in the world,” said Hannan Parvizian, CEO and Co-Founder of Volans-i, in San Francisco. “Successfully demonstrating our ability to make temperature-controlled drone deliveries in various climate and terrain conditions across these pilots is a first step towards realizing our vision for a world in which no one should be deprived of access to life-saving medical supplies and vaccination due to lack of infrastructure and responsiveness of the transportation ecosystem.”

“This most recent proof-of-concept test has once again demonstrated the capabilities of the Softbox SKYPOD for the transportation of life saving medicines, this time at ultra-low temperatures,” added Richard Wood, Director, Digital Connected Technologies at Softbox. “To ensure full track and trace throughout the test flight Softbox utilized Internet of Things (IoT) technologies and data dashboard services provided by AT&T. The data collected during the successful flights has shown everybody involved the power of IoT to provide full visibility of the Cold Chain, even in the most extreme environments while using innovative transportation modes.”

“Through close collaboration with Direct Relief, Merck, Volans-I and AT&T, we have successfully proven the capabilities of this unique and ground-breaking combination of cutting-edge technologies and now will focus our efforts on completing subsequent pilot projects,” Wood concluded.

Global Trade Magazine Opens Nominations for the 7th Annual “Americas 50 Leading 3PLs”

Global Trade Magazine has officially kicked-off its seventh annual “America’s Top 50 Leading 3PLs” nominations process, with the 2019 list scheduled to go live in the September/October issue. This year will feature the most competitive movers and shakers transforming domestic and international logistics by raising the bar higher while exceeding client expectations and maintaining an exemplary company profile and reputation.

Companies leading initiatives in specific industries will have the opportunity to showcase their expertise among a variety of categories including E-commerce/Omni-Channel, Temperature-Controlled, Innovation, Hazmat, Retail, and much more. Following last year’s focus on “needs-based” categories, the 2019 feature will spotlight specialty industries with the highest demand.

“It’s a measure of the quickly growing/changing/evolving global marketplace that arguably the most critical industry serving it, Third Party Logistic Providers (3PLs), continues to grow, change and evolve at a dizzying pace,” explained former senior editor Steve Lowery in the issue’s introduction.

“That evolution has been chronicled over the years in this, our annual Top 3PL issue, as we have written about such things as an increasing emphasis and reliance on technology, the constant march toward transparency and, most recently, the increasing pace of acquisitions and consolidations.”

Global Trade Magazine will determine the final 50 nominations based on industry reputation, outstanding operational excellence, game-changing initiatives, disruptive technology, and unmatched levels of innovation. This list not only showcases leading players, but also serves as a comprehensive list for manufacturers seeking new partnerships and opportunities.

“It is easy to say that one must move faster, deliver services quicker, be more innovative and have an organizational agility to flex with the world, but it takes something quite different to lead the cultural transformation that is required to make these goals a reality,” said Rich Bolte, CEO of BDP.

“Leadership will have to change as well. Leaders will be measured by their ability to innovate and create potential disruptions. The old paradigm of measuring only performance and execution has changed.”

Nominations are currently open and will be accepted through August 15 at 5 p.m. CST.

To see a complete list of recipients, please visit www.globaltrademag.com and view the current issue.         

Lineage Logistics Recognized for Exemplary Energy Management Project

Utilization of machine-learning technology for a process referred to as “flywheeling” has successfully supported energy management and waste reduction for Lineage Logistics. The global temperature-controlled logistics provider was recognized for these efforts by the U.S. Department of Energy’s (DOE) Better Plants Program (Better Plants) this week, earning them a winning position for 2019 Better Practice Awards.

“This great honor from the DOE is a testament to the hard work and dedication of our talented team, and it is quite humbling to be recognized as a leader in energy conservation. Flywheeling is one of the many ways Lineage lives our purpose of transforming the food supply chain to eliminate waste and help feed the world,” said Greg Lehmkuhl, President and Chief Executive Officer of Lineage.

Invented by Lineage’s Principal Data Scientist, Dr. Alex Woolfe, “flywheeling” takes energy conservation to the next level by eliminating waste and proactively managing energy while reducing cost. These efforts are critical in Lineage’s operations as the company confirmed its North American power consumption alone is comparable to that of a mid-sized city.

Following the launch of the “flywheeling” project, Lineage and Dr. Woolfe received the official utility patent by the United States Patent and Trademark Office and will be recognized on July 10-11 at the Better Buildings, Better Plants Summit in Virginia.

“We are entrusted with ensuring that billions of pounds of food across the United States and the globe are kept at optimal temperatures throughout the supply chain, and we are obsessed with finding new ways to do this even more safely and efficiently than has ever been done before,” Said Michael J. McClendon President, Lineage Europe & EVP, Network Optimization.

“Better Plants partners such as Lineage are implementing innovative energy efficiency solutions in the industrial space that are cutting costs and energy-use and the Better Practice Awards honor their leadership,” said Valri Lightner, DOE Advanced Manufacturing Office Acting Director.

Source: Lineage Logistics

Lineage Logistics to Acquire Preferred Freezer Services

Global leader in temperature-controlled logistics solutions, Lineage Logistics company, announced its latest acquisition of Preferred Freezer Services. The acquisition will support company efforts to raise the bar higher while expanding its company footprint and providing customers the highest level of technological advancements.

“We are thrilled to welcome Preferred into the Lineage family of companies,” said Greg Lehmkuhl, President and Chief Executive Officer of Lineage. “Bringing their first-class management team, deep industry experience and network of strategically located facilities into our organization will enable us to provide best-in-class service offerings for customers worldwide. Lineage is now better positioned than ever to meet the needs – and exceed the expectations – of food customers on a truly global scale.”

Currently projected upon finalization are over 1.3 billion cubic feet of temperature-controlled capacity across over 200 facilities in addition to the 17 automated facilities with over 800,000 automated pallet positions.

“We have followed Preferred’s impressive growth and innovations under John’s leadership since launching Lineage and always knew that bringing these two companies together would reinforce our vision to be the most dynamic temperature-controlled company in the industry,” commented Kevin Marchetti, Co-Founder and Managing Partner of Bay Grove, the principal investment firm backing Lineage. “This transaction will equip Lineage with the global reach and innovation capabilities that will fuel the next chapter of the Company’s growth and we are excited to have them on board.”

 “I’d like to thank John and the entire Preferred team for their incredible partnership,” said Peter Lamm, Managing Director of Fenway Partners, Preferred’s equity partner and owner. “Preferred has built a tremendous platform under the management team’s leadership and, on behalf of Fenway Partners, I am proud to have supported its sustained growth over the past decade. We wish both organizations great success as a combined company.”