Lawrenceville, Georgia, USA: The majority of third-party logistics respondents plan to expand their cold chain capabilities and services, according a new report.
The 26th Annual Third Party Logistics Study, by NTT Data, Penske, and Penn State says that “global population growth, increased consumer demand for fresh products, strong grocery e-commerce sales and a wider variety of perishables are driving the need for cold storage space.”
According to Tom Madrecki, vice president of supply chain and logistics with the Consumer Brands Association, “demand for cold chain services is so high that finding available, cost-effective services is difficult. “There is increased demand for services that are more specialized,” he said.
“What’s more, some shippers are opting for cold chain services to preserve the shelf life of products even if temperature-controlled trailers aren’t a necessity. More shippers are gravitating toward cold chain services that aren’t required by regulators.
“You can move a truckload of shelf-stable rolls without a cold chain, but by having one, you add another few days to the product’s life expectancy,” he said. The added shelf life can justify the added cost of cold chain services.
The report says that cold chain logistics is complex because of the multiple nodes and parties involved in moving chilled or frozen goods. 56% of shipper respondents with cold chain products reported that packaging was either fully outsourced or partially outsourced.
For warehousing and storage, 61% of shippers reported this function was either outsourced to some degree. No shipper respondents reported handling cold chain transportation exclusively in-house. Frozen goods were more likely to be outsourced than chilled goods. Similarly, the last mile saw more outsourcing than other transportation segments.
