🧊 Cooling must be seen as critical national infrastructure

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

In today’s edition:

• Cooling must be seen as critical national infrastructure, report says

• Lineage closes up more than 3% in market’s largest IPO of 2024

• Emergent Cold Latin America (Emergent Cold LatAm) views Mexico as a pivotal market for its growth

• Building supply chain resilience with AI - MIT Technology Review Insights

News

Cooling must be seen as critical national infrastructure A recent report, "The Hot Reality: Living in a +50°C World", emphasizes the urgent need for governments to recognize cooling as critical national infrastructure (CNI) to combat climate change impacts.

• Published by the Centre for Sustainable Cooling and supported by Cranfield University, the report calls for ambitious policies to manage energy use and reduce cooling demand, highlighting the role of cooling in achieving societal, environmental, health, and economic goals.

  

  Visualization of a holistic system approach for two cold-chain based cooling infrastructure ‘eco-systems’: 1) (upper diagram) ‘farm to fork’ perishable food produce supply chain, 2) (lower diagram) ‘manufacture to arm’ vaccine distribution chain. Source: Professor Toby Peters and Dr Leyla Sayin

• Dr. Natalia Falagán of Cranfield University contributed insights on the importance of robust cold chains in ensuring food security, noting that 12% of global food production is lost due to inadequate cooling.

• The report underscores cooling's critical role in safety, comfort, health, and economic well-being, advocating for its global recognition as CNI.

• Dr. Tim Fox, lead author, warns that without comprehensive policy approaches, countries risk increased vulnerability and significant socio-economic impacts.

• The report was launched at an event by the Centre for Sustainable Cooling and the Institution of Mechanical Engineers, featuring contributions from over 35 experts worldwide. (link)

Lineage closes up more than 3% in market’s largest IPO of 2024 Lineage, the world's largest temperature-controlled warehouse REIT, successfully completed its initial public offering (IPO) on July 25, 2024, marking the largest IPO of the year.

• Lineage raised $4.4 billion by selling 57 million shares at $78 each. The company's implied valuation exceeded $18 billion.

• Lineage began trading on the Nasdaq under the ticker symbol "LINE”. Shares opened at $82, above the offer price of $78, and rose as much as 5% during initial trading.

• The stock closed up more than 3% on its first trading day.

• Lineage's IPO is the largest since Arm Holdings went public in September 2023.

• The company was founded in 2012 by Adam Forste and Kevin Marchetti, starting with one facility in Seattle and growing through 116 acquisitions. (link)

Emergent Cold Latin America (Emergent Cold LatAm) views Mexico as a pivotal market for its growth Emergent Cold LatAm made significant investments in cold chain logistics in Mexico, including the acquisition of Bajo Cero Frigoríficos and the expansion of facilities in Villagrán and Apodaca.

• Juan Pablo Benitez, Managing Director for Mexico, highlights that Mexico's proximity to the U.S., robust trade flows, and nearshoring trends make it an attractive market.

• The domestic market's potential and geographic advantages are key factors driving Emergent Cold LatAm's aggressive expansion strategy.

• The company plans to develop more infrastructure, including a new warehouse in Monterrey, to support the growing demand for cold storage and logistics services in Mexico.

• Emergent Cold LatAm also emphasizes sustainability, incorporating new technologies to enhance energy and water efficiency in its facilities.

• The company aims to provide comprehensive logistics solutions across Latin America, leveraging its extensive network of over 30 warehouses in Mexico. (link)

Building supply chain resilience with AI - MIT Technology Review Insights AI and cloud technologies are revolutionizing supply chain management, enabling real-time visibility, improved forecasting, and enhanced resilience across industries.

The latest MIT Technology Review report uncovers the tools and tactics to build a supply chain that can thrive in any environment. (link)

Other headlines

Sara Goodman-Stickler confirmed as the new President and CEO of GCCA.

FedEx has opened its first European Life Science Center in Veldhoven, Netherlands.

ARCO has begun the construction of a 21,515 sq. ft. expansion to its existing cold storage facility in Richmond, Michigan.

ASKO, a Norwegian grocery distributor, is advancing sustainable logistics by implementing Thermo King's electric refrigeration units in their fleet.

India's cold chain logistics sector is embracing sustainability through technological innovations, government initiatives, and industry partnerships.

UK logistics company J.S. Davidson successfully trialed Sunswap's battery and solar powered transport refrigeration units.

A global IT outage brought supply chains to their knees – we need to be better prepared next time.

That’s it for today!

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