🧊 Strong demand for cold storage in the US

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

In today’s edition:

• Growing demand for US cold storage

• Maersk is building a new cold storage facility in Rotterdam

• Lineage opens ColdPort facility in Houston

• Automating the cold chain warehouse

News

High demand for cold storage in the US The food and pharmaceutical industries are grappling with a shortage of cold storage capacity, a problem that has been exacerbated by the pandemic. As companies held more inventory and e-commerce demand surged, the cold storage supply chain hit its limit. Now, food manufacturers and their partners are actively seeking solutions to prevent future bottlenecks.

• The pandemic has led to a significant increase in the demand for cold storage, pushing the capacity of the existing infrastructure to its limits.

• Many cold storage facilities were built over two decades ago and often lack updated cooling technology, which can limit their efficiency and capacity.

• Small food manufacturers are particularly feeling the impact of the competition for cold storage, which is affecting their bottom line.

• The public refrigerated warehouse sector has seen consolidation in recent years, with two companies – Americold Logistics and Lineage – emerging as major players.

• Companies are now investing in better forecasting for both ends of their supply chain to manage and anticipate demand more effectively.

• The specialization and economies of scale in cold storage make it a challenging sector to react quickly to changes, emphasizing the importance of planning.

As companies strive to meet increased demand and prevent future bottlenecks, they are investing in better forecasting, exploring new technologies, and considering consolidation. (link)

Construction started for Maersk’s new cold store in Rotterdam Maersk has commenced construction on a new cold store in Rotterdam, the Netherlands, adjacent to the Maasvlakte II terminal. The specialized warehouse will cater to the storage and transportation of temperature-sensitive or frozen products such as pharmaceuticals, fruits, meat, and fish. With completion scheduled for Q4 2024, the facility will accommodate over 43,000 FFE (40 Feet Equivalent Units) annually, strengthening Maersk's logistics services in Northwest Europe. The proximity to the terminal and a forthcoming cross-dock facility in Rotterdam will enable Maersk to offer customers more integrated supply chain solutions. (link)

Vertical Cold Storage Breaks Ground on Kansas City Facility Vertical Cold Storage, sponsored by Platform Ventures, is building a multi-modal distribution center in Kansas City, Missouri. The 300,000-square-foot facility is expected to begin operations by the end of 2024, making it Vertical Cold Storage's eighth distribution center. The development will feature blast freezing, case picking, and expedited intermodal transportation services. With approximately 50,000 pallet positions and four rooms convertible to -20° F, the facility's design will prioritize energy efficiency. Located near major transportation terminals, this development reflects the ongoing growth of the industrial sector in Kansas City. (link)

Lineage Celebrates the Grand Opening of Houston ColdPort Facility Lineage, a leading temperature-controlled industrial REIT and integrated solutions provider, celebrated the grand opening of its new facility in Houston, Texas. The Houston ColdPort facility, spanning approximately 315,000 square feet, is strategically located near the Jacintoport Terminal at Port Houston, enhancing Lineage's network in Texas. The facility offers integrated and streamlined transportation and drayage operations to support import, export, and domestic demand. With this new addition, Lineage now has six locations in its Greater Houston network and over 400 facilities globally. The facility began operations in October 2023 and will support customer needs and enhance Lineage's presence in the Houston market. (link)

Initiatives

Cold Chain Federation Launches New Energy Benchmarking for Cold Storage The Cold Chain Federation has released new Energy Benchmarks for UK cold stores, accompanied by a specialized tool for the Federation's members. This tool enables businesses to compare their cold store's energy usage with similar facilities across the UK. It also provides insights into potential financial and carbon savings through further energy efficiency enhancements. The Benchmarks and tool were developed in response to the need for up-to-date, UK-specific information on cold storage energy consumption. By using data from nearly 450 cold stores, the tool assesses energy performance against benchmarks and displays progress, cost savings, and carbon reduction potential. The project aims to support the industry in reducing costs and achieving a net-zero cold chain. (link)

Reports

Automating the cold chain warehouse (Report by Supply Chain Brain sponsored by Lineage)

The automation of cold-chain warehouses is a complex process that requires a tailored approach for each cargo owner due to their unique attributes and requirements. The ultimate goal of automation is to enhance efficiency, improve quality, and reduce costs, benefiting both cold-chain logistics operators and their customers. This is achieved through the use of robots and information systems that automate processes from end to end, including loading, unloading, and storage.

• Tailoring automation solutions to individual customer needs is crucial for optimizing warehouse operations, meeting regulatory requirements, and reducing food waste.

• Automated systems, such as computer vision, streamline pallet information recording and data capture for the Warehouse Management System (WMS), ensuring accuracy and compliance.

• Automation in frozen spaces reduces heat load, minimizes temperature loss, and expedites shipment receipt confirmations, enhancing operational efficiency.

• Coordinating warehouse activities through software is essential for streamlining operations, mitigating labor shortages, and reducing human error in inventory management.

• Automation of repetitive tasks, such as case picking, leads to increased inventory accuracy, and cost savings, and allows human resources to focus on more meaningful work.

The increasing demand for perishable goods and the ongoing labor shortage in the logistics industry make automation an essential strategy for the future of cold-chain warehouses. (register to download the full report here)

Other Stories 

Cold Chain Exhibition 2024: Unveiling the Future of Refrigeration and Temperature Controlled Logistics in Asia - Supply Chain Brain

Expanding transporter returns to Krone as demand stays strong - Cold Chain Federation

Top-of-the-line Large Scale Ti Cold Constructed Facility Opens in Phoenix - Yahoo Finance

Refrig-It Expands Multi Temp-Controlled 3PL Warehouse: Enhancing Cold Chain Solutions for Food Industry Clients - Cision PR Web

That’s it for today!

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