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Cold chain industry consolidation

Inflation and cold chain growth drive industry consolidation

Industry changes taking place
Cold chain industry consolidation

Image courtesy of Rabobank

Cool Logistics Global 2021 took place from 19 – 21 October.  Our delegates heard how strong cold chain logistics growth has triggered market consolidation. This growth has also attracted new market entrants.

Matteo Iagatti of Rabobank and Amit Hasak of Transship discussed market consolidation, the impact of the pandemic, rising logistics costs and much more. 

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Inflation and cold chain growth drive industry consolidation

Global Shippers Forum at Cool Logistics Global 2021

Global shippers discuss challenges and opportunities
Inflation and cold chain growth drive industry consolidation

Cool Logistics Global 2021 took place from 19 – 21 October. Our Global Shippers Forum featured Juan-Patricio Navarro of ProEcuador, David Sussman of Seafoodia, Juan Andres Ferrari of ACF Global Sourcing, Marc Evrard of BFV Belgische Fruitveiling, Stefano Di Paolo of Great White Fleet Ltd., Chiquita Brands, Chris Swartz of AJC International and our moderator was Ole Schack-Petersen of Broom Group. 

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Congestion not container shortages main cause of delays

Congestion problems at global ports becoming worse

Cool Logistics Global 2021 took place from 19 – 21 October and our second session on day one included discussion on port delays.  Our panel of Sarah Schlueter of Hapag-Lloyd, Robert Sappio of SeaCube Containers, Andrew Lorimer of Datamar and Diego Barriga of Lancaster and Foodcareplus all agreed that congestion rather than container shortages is in fact the major cause of the delays. Perishable products in particular are often considered low value, despite high logistical costs.

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Cool Logistics Global 2021

Current situation in shipping not set to improve

Problems will continue for shipping industry
Cool Logistics Global 2021

Cool Logistics Global 2021 took place from 19 – 21 October. Speakers in our first session discussed the global outlook for shipping and logistics, with a particular focus on reefer shipping trade and trends. FreshPlaza reported on our panel discussions with Bruce Marshall of A.P Moller-Maersk, Martin Dixon of Drewry, Thomas Eskesen of Eskesen Advisories and Michel Looten of Seabury Cargo.

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Reefer container IoT

Bronze Sponsor Globe Tracker share insight on successful reefer container IoT deployment planning

Successful Reefer Container IoT Deployment Planning – Food for Thought

The last few years have witnessed significant growth in the deployment of IoT devices in the maritime refrigerated container segment, and since the emergence of Coronavirus, this activity has only accelerated. The idea of an IoT equipped “Smart Reefer” is a now reality and here to stay.

At the same time the maritime cargo market is undergoing a difficult time where demand is high, availability of equipment is scarce, and freight rates are at an all time high and continue to rise even higher.  For shipping lines considering an IoT program in cold chain, the benefits are overwhelming, however the logistical task of equipping large reefer fleets in operation over large geographical areas during an all-time high demand, can be a daunting task if not planned properly.

Real-time and precise location along with new developments in smart pre trip inspection, big data and predictive analytics, the time for return on investment for the technology has never been more compelling. The digital transformation and trends toward transparency are here to stay.  Early adopters of IoT will likely see significant competitive advantages, but how do you manage the pitfalls of deploying IoT devices in this climate?

It all starts with having a pragmatic and detailed plan for both existing fleets and new reefer orders where IoT devices can be installed in the factory.   Any strategy of incorporating IoT device in new reefers containers should  be on the top of the list. There is little doubt that the most cost efficient way to outfit fleets are during new build production either on the factory floor of the reefer manufacturer or at the container factory assembly during commissioning.  Not only is this more efficient but it can result in cost savings and reduced reefer downtime.

The new build installations save you the trouble of finding and moving containers on which to install the IoT equipment. Also, new build installations, when properly done, can provide validity of data in a more timely and reliable fashion than retrofit field installations.

For existing fleets, mapping out key installation locations based trade lane analysis and on throughput is one of the fastest ways to outfit the entire fleet quickly. Working with depots and telematics vendors on installation timing is key to understanding the full scope of installation costs.  While limiting the number of installation points, fully fleet deployments may take a bit longer, but the process becomes quite manageable.

Considerations for installations in the field are more complex and require understanding the following, and having a clear understanding for the answers to the following questions: Do the telematics providers or depot partners have the right team on the ground or provides the proper support to ensure a smooth installation process in the areas you have selected for installation?

Do the telematics operators have a foolproof way of installing its devices to avoid duplicate container IDs or improperly programmed controller IDs?  Can the telematics providers validate GPS, Reefer data and cellular communications upon every installation in rapid fashion at dozens of locations globally? Sometimes limited access to clear sky can hinder 100% validation of proper installation.

Does your telematics provider have contingency plans when the installation location chosen has poor to non-existent cellular connectivity?  For certain depots in remote areas or where cell signals may be impaired by container stacks can result in inefficiencies.  Does your connectivity provider align with your commercial footprint? Both existing and future in order to make sure that its devices can connect where and when you need them to?

Once you feel comfortable with you chosen partners and installation plan, then you head toward planning rollout logistics and forecasting.

Other key considerations are what the maximum volume of installations that can be achieved by each depot per week?  

What challenges are there for delivery of telematics equipment to your chosen sites such as Customs regulations and shipping barriers? Should certain installation sites have to be skipped until all the duties and taxation questions have been answered, and does the device has all the approvals for entry into the country of your choice?  Logistics and cost of importing of IoT devices for installation can vary from country to country.

Does your telematics provider handle all the logistics shipments and installation monitoring, or do they wish to push the installations in your direction? Does your provider have tracking centralized tools to monitor many thousands of installations from multiple sites globally on a daily basis?

No IoT implementation is without risk and unforeseen issues, but by carefully considering the answers to these questions before you choose a telematics vendor and develop a pragmatic rollout strategy will not only save money but also provide a smooth path toward large-scale integration of the IoT devices into reefer fleets.  Not doing so will only increase the risk of costly issues and delays which can occur at any time during the process.

We expect the maritime refrigerated container market to reach critical mass of installed telematics based by the end of 2023 with hundreds of thousands of devices deployed in that time. Understanding all the variables that go into a successful IoT deployment program is key to assure that deployment plans remain on time and on within budget, so that the many benefits of IoT can be realized.

For further information, visit Globe Tracker here

 

 

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Digitalisation and agrofood logistics

Our Port Partner for 2021, the Port of Rotterdam, releases a new White paper on digitalisation in agrofood logistics

Our Port Partner for 2021, the Port of Rotterdam, releases a new White Paper on the role of digitalisation in agrofood logistics. What processes can be digitalised and what are the challenges and opportunities?

Source: Port of Rotterdam

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Dennis ALibux

MSC Netherlands gives insight on challenges facing the banana market amid Covid-19

Silver sponsor MSC gives insight on challenges facing the banana market amid Covid-19
Dennis ALibux

The Cool Logistics team speaks with Dennis Alibux – Reefer Manager, MSC Netherlands, about how MSC is helping its customers navigate the challenges facing exporters and importers amid Covid-19.

How have you seen Covid-19 affecting the banana market?  

The impact of the pandemic has been widespread and, as well as affecting people’s health worldwide, it has had a well-documented impact on the supply chain. As people have become more focussed on health and wellbeing as a consequence of the pandemic, the fresh fruit and vegetable market has also seen an increase in demand, putting additional pressure on the supply chain.  

Whereas under normal circumstances we’d expect to see exporters exploring new markets, we have instead seen a focus on maintaining ‘normality’ for customers, delivering the volumes demanded and ensuring goods arrive regularly and in good condition. 

What are the current challenges for importers and exporters in the banana market

Competition is high in the market – margins are constantly under pressure and customers are always trying to find new ways to increase operational efficiencies. Bananas are a popular fruit year-round, and we did not see the drop in volumes earlier in the year that we did with some other commodities – in fact the total banana market in Rotterdam increased in 2020 vs 2019, and we expect this trend to continue.  

This means that banana exporters and importers are under pressure to deliver quality goods all year round, and are counting on their partners in the transport industry to help them move their cargo efficiently and reliably. MSC has formed lasting partnerships with customers and suppliers across the cold supply chain and are constantly working to mitigate against the challenges our customers are facing, providing support at every stage of their cargo’s journey. 

How has the banana market changed in the past few years? 

Thanks to major advancements in refrigerated container technology global demand for fresh fruit shipped by reefer container has grown by as much as 40% over the last decade, as exporters become less reliant on traditional methods of transport and have started shipping their goods from A to B. 

Advanced technology like Controlled Atmosphere solutions mean that perishable goods can spend longer on their journeys whilst still arriving at their destinations fresh. This has opened up a new world of options for importers and exporters of bananas – which are a very delicate commodity.  

How has MSC responded to this? 

MSC has responded by implementing direct services from key fruit markets such as Costa Rica, Ecuador, Peru and Brazil, and has expanded its shipments of refrigerated containers year on year – in 2020, we transported more than 1.9 million TEU of reefer cargo topping our previous record of 1.8 million in 2019.  

We have been expanding our reefer fleet for temperature-sensitive cargo, notably by adding 15,000 Star Cool units in 2020, and we now have one of the newest reefer fleets in the world. We have also invested heavily in Controlled Atmosphere solutions, and have established dedicated teams of over 1,000 reefer experts, available 24/7, across the world, who are continuously trained to meet the growing reefer market demands and to ensure our customers’ cargo is in safe hands at every stage of its journey – enabling us to deliver global solutions, locally. 

How will MSC continue to support the refrigerated supply chain in the future? 

Reefer container shipping is expected to continue its rise for the foreseeable future, and MSC is committed to offering new opportunities for all participants in the refrigerated cargo supply chain, from producer to consumer. 

However, it’s not only about physical infrastructure; MSC is also focussed on the digital future of the supply chain.  We have been investing in developing digital tools to make shipping safer, more efficient and more sustainable, and we are taking steps to drive digitalisation across our industry. 

A few years ago MSC launched myMSC – a secure and user-friendly online tool that makes it easy to manage every stage of the shipping process. Customers can use myMSC to place bookings, track their shipments, view their order history, get online quotes, see draft Bills of Lading and more.  

Most recently, MSC has launched its electronic Bill of Lading (e-BL) solution, replacing the traditional paper Bill of Lading with a digital version, enabling shippers and other key stakeholders of the supply chain to receive and transmit all trade-related documents electronically. The application is available for shippers, importers and traders of all industries and sizes worldwide and requires no additional IT infrastructure or operational change.  

MSC’s Global Chief Digital and Information Officer, André Simha, will be discussing the advantages of eBL at this year’s Cool Logistics Event as part of a case-study panel, revealing how this new technology has helped our customers save time, reduce costs and mitigate the impact of trade disruptions on cargo flows during COVID-19. 

Sign up to hear André Simha speak via the Cool Logistics event page using this link here 

Find out more about MSCs refrigerated solutions here

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Cool Logistics Global

Cool Logistics Global goes the distance

Now in its 13th year, what makes a Cool Logistics Global event so special for the cold chain industry?
Cool Logistics Global

Rachael White, MD of Cool Logistics Global at the 11th Cool Logistics Global, Valencia, 2019

Ahead of our event 19-21 October, our Managing Director Rachael White shares her perspectives on the global cold chain and what you can expect when you join us online later this month. Still not booked your place? Don’t miss out!

Cool Logistics Global turns 13

It is official – Cool Logistics Global is 13 years old in 2021.  For 13 years, we have enjoyed hosting our global community of decision -makers, experts, explorers and innovators. All have a common passion for perfecting perishables logistics and promoting excellence along the cold supply chain.

A cold supply chain under severe pressure

From bananas to berries, pork to prawns, pharma to flowers, each cold supply chain is unique. Yet all are dependent on a common global cold chain logistics and transport system across sea, air and land. 2021 has seen ocean and airfreight disruption, port and transport network congestion, equipment shortages and rising reefer freight rates. How should shippers and industry respond? We’ll be discussing this issue in our panels.

Challenges and opportunities

More investment in physical cold chain infrastructure and transport assets is clearly crucial. The drive towards more logistics integration, consolidation and data-driven supply chain segmentation for temperature-controlled goods of all types has also accelerated during the pandemic. Hear from shippers and service providers at our event.

The march of technology continues

Advances in data, digitalisation, automation, clean and green energy and refrigeration technologies will all play a key role in improving cold chain efficiency. Cool Logistics Global will showcase and discuss cutting edge cold chain and reefer logistics technology in our new CoolTech forum as part of Cool Logistics Global 2021. 

The big sustainability challenge and how to address it

Fresh approaches are also urgently needed to tackle major sustainability challenges for people, planet and profit. Join us to gain a deep understanding of the issues in local contexts and discuss solutions to bring about real transformation.

Communicate and collaborate

Better end-to-end cold supply chain resilience and sustainability go hand in hand and must be a priority for all. That requires not just technology but communication, collaboration and orchestration across the many cold chain links and layers from production to consumption.

My Top 5 reasons why you need to attend Cool Logistics Global 2021, 19 – 21 October

  1. The most shipper and cargo voices that a Cool Logistics Global has ever featured in its 13 year history!
  2. We are the ONLY international event this year for the perishables trade, cold chain and reefer shipping community
  3. The 2021 programme features more NEW speakers bringing a fresh outlook and fresh opinions to discussions and debates.
  4. Grow your Cool network Cool Logistics Global is the place to meet new colleagues and peers – and reconnect with old ones – all in one place at the same time.
  5. Excellent value – only £199 for 3 days of unrivalled industry know-how

We look forward to welcoming you.

The Cool Logistics Team

Book your delegate place here 

 

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Going bananas about AI

Hans-Willem van der Waal of Agro Fair speaks to Cool Logistics about post-harvest digital innovation for organic bananas

Photo by Jeremy Bezanger on Unsplash

Going bananas about AI for fresh produce. Ahead of Cool Logistics Global 2021, taking place online 19 – 21 October, the Cool Logistics team speaks to Hans-Willem van der Waal of Agro Fair about post-harvest digital innovation for shipments of organic banana. To hear directly from Hans-Willem on this subject, book your place today for Cool Logistics Global 2021 here 

Source: Rachael White on LinkedIn

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