London-based Drewry Shipping Consultants says that the global capacity of reefer container ships is expected to grow by 20 percent over the next three years. Drewry also reports that perishables moved over the seas in 2014 increased by nearly five percent to exceed 100 million metric tons.
Proposed regulations mandated by the Sanitary Food Transportation Act and the Food Safety Modernization Act hold powerful implications for the future of the cold chain industry. The business environment is shifting, and the proposed rule is just one piece of this changing landscape, as the industry experiences an overall increase in regulations, customer-required audits and augmented public pressure from food recalls.
As a part of the strategy to expand its logistics business further in Asia, Kawasaki Kisen Kaisha Ltd., or "K" Line, has agreed to establish a joint venture with Cool Japan Fund Inc. and Japan Logistic Systems Corp. to build and operate a cold storage in the outskirts of Ho Chi Minh City in Vietnam.
Eskimo Cold Storage, a frozen foods storage company based in Gainesville, Ga., has already saved $100,000 since installing RFID readers about four months ago, and forecasts an annual savings of $233,000. The company installed an RFID reader at the end of 20 aisles within its warehouse, so that it could confirm where its thousands of pallets are located as they are put away or removed.
Analyst Insight: Direct delivery of orders to the customer's doorstep is a hot topic for transportation and logistics executives"”from giants like Amazon to mom-and-pop specialty retailers. In particular, there is a lot of buzz around the direct-to-consumer cold chain. Free delivery and free returns, combined with the complexity and cost of cold chain distribution center (DC) and delivery assets, make for a chief marketing officer's dream and a chief financial officer's nightmare. How can you get this capability just right? - Don Anderson, Principal, Tompkins International
Grupo PÃ£o-de-AÃ§Ãºcar (GPA) has found an RFID solution to a problem that previously affected both logistics and accounting for its PÃ£o-de-AÃ§Ãºcar and Extra supermarket chains. The distribution of fish, as well as other products in its cold chain, presents significant challenges for the retailer. After all, fish do not have identical weights, and businesses work with average values per unit, resulting in differences between what theoretically was delivered to a store, what was really sold and the expected revenue generated by marketing.
Adoption of carton-level tagging using temperature-sensing RFID for pharmaceuticals could be nearing an inflection point, as was seen recently with item-level tagging in apparel. But tracking temperature-sensitive pharmaceuticals is very different from tracking apparel.
Kuehne + Nagel has agreed to take over the business of Perishables International Transportation Inc. of Vancouver, Canada, another step in implementing the Swiss company's strategy to expand its activities in the field of perishables logistics globally.