🧊 Cold Chain Federation launches manifesto

Welcome back to CubeCold News where we cover the latest developments in the cold chain industry and temperature-controlled logistics.

In today’s edition:

• Cold Chain Federation launches manifesto

• Cold chain spotlight: three trends to watch In 2024

• Maersk completes largest infrastructure investment in New Zealand

• Americold reports mixed results for Q4 2023

• WEC Lines expands reefer container fleet

News

Cold Chain Federation launches manifesto to unlock industry’s potential The Cold Chain Federation (CCF) has recently unveiled its manifesto, titled "Cold Chain: The Vital Link to Turbocharging UK Growth," which outlines a series of priority policies aimed at unlocking the potential of the UK's temperature-controlled logistics industry.

• Investment in Infrastructure: The CCF calls for increased investment in the UK's transport and logistics infrastructure to enhance the efficiency and resilience of the cold chain.

• Energy Efficiency and Renewable Energy: The manifesto highlights the need to tackle overchilling in the frozen supply chain and to harness the potential of renewable energy sources.

• Support for Emerging Technologies: The CCF seeks support for operators to bridge the enhanced capital cost of adopting new technologies, including overcoming grid connection challenges for charging infrastructure.

• Skills and Training: Recognizing the growing complexity of the industry, the manifesto calls for renewed focus on skills and training for the cold chain workforce.

• International Trade: The manifesto advocates for supporting the growth of international trade in temperature-sensitive products. (link)

Cold-chain spotlight: three trends to watch In 2024 The Forbes article "Cold-Chain Spotlight: Three Trends To Watch In 2024" by Nicole Glenn, CEO of Candor Expedite, highlights three trends in the rapidly growing cold-chain logistics sector:

• Economic Downturn Opportunities: The economic downturn is expected to continue, affecting shipping rates and cold storage availability. This presents a window of opportunity to find more affordable carrier options, explore alternative transportation methods that require less cold storage, and take advantage of a potentially larger workforce due to layoffs.

• Cold Chain Custody Accountability: There will be a stronger emphasis on accountability within cold chain logistics among shippers, carriers, and consignees to mitigate reputational risk. This trend indicates a move towards more stringent compliance with refrigeration guidelines and cold-chain custody regulations.

• Innovation in Cold Chain Technology: The sector is set to embrace technological innovations aimed at improving agility and sustainability. Innovations include bespoke packaging solutions for controlled temperatures, eliminating the need for refrigerated transport and storage, and data-informed software platforms for better visibility and compliance. (link)

Americold Realty Trust Inc (COLD) reports mixed results Americold Realty Trust Inc. (COLD) reported its financial and operating results for the fourth quarter and full year ended December 31, 2023.

• The company experienced mixed financial outcomes during this period, amidst strategic expansions and efficiency improvements.

• For the full year 2023, Americold's total revenue decreased by 8.3% year-over-year to $2.7B. The company reported a significant net loss of $336.3M, or $1.22 loss per diluted common share.

• Despite the revenue decline, Americold's Adjusted Funds From Operations (AFFO) per share grew by 14% to $1.27, indicating robust operational performance.

• During the fourth quarter specifically, Americold's total revenue decreased by 5.9% to $679.3M, primarily due to decreases in the Third-party managed and Transportation segments. However, the Global Warehouse segment saw an increase in revenue by 2.3% to $612.3M.

• Strategically, Americold announced two inaugural developments: a $130M greenfield development in Kansas City, Missouri, and a $35M conventional multi-customer major market distribution center in Dubai. (link)

Maersk completes largest infrastructure investment in New Zealand A.P. Moller-Maersk (Maersk) has recently celebrated the opening of its new cold chain facility at the Ruakura Superhub in Hamilton, New Zealand.

• This facility is a significant development for the region, as it is Maersk's largest infrastructure investment in the country, with approximately NZD 140-150M (USD 87-93M) allocated to the project.

• The 18,000 sqm facility is strategically located in the heart of the Golden Triangle, a key freight and logistics corridor that connects Auckland and Tauranga and is expected to handle 65% of New Zealand's total freight.

• Maersk has partnered with the local Waikato-Tainui tribe, who own the land on which the Ruakura Superhub is situated, marking a significant social investment in the region through job creation and economic development.

• The facility's design emphasizes environmental sustainability, with the installation of solar panels, the use of CO² instead of ammonia in freezers, rainwater collection and reuse, and providing electrical charging stations for cars and trucks. (link)

WEC Lines expands reefer container fleet WEC Lines, a Dutch shipping operator, has entered the refrigerated container market by adding 50 new 45ft High-Cube Pallet-Wide reefer containers to its fleet.

• This move is a response to the increasing demand for temperature-sensitive transportation in industries such as food and beverage, pharmaceuticals, and healthcare.

• The new reefers are equipped with advanced cooling systems capable of maintaining temperatures from -30ºC to +30ºC, ensuring the safe transport of perishable goods.

• The company's recent investment aims to address the growing need for refrigerated cargo transport within Europe and is aligned with WEC Lines' commitment to reducing its ecological footprint, with the new reefers featuring low power consumption and environmentally friendly refrigerants. (link)

Other headlines

ECS has begun testing Thermo King's E-COOLPAC electric battery genset, a diesel-free power source for refrigerated marine containers.

Sensitech unveiled TempTale GEO X, an innovative pharmaceutical cold chain monitoring solution for enhanced visibility, compliance, and supply chain efficiency.

Metropolitan Realty Associates purchased a 75,000 sq ft former Europastry cold storage facility in Bayport, New York for $12.6 million.

WCS Logistics is investing $27M to expand its cold storage capabilities in Frederick County, Virginia.

That’s it for today!

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