DECEMBER - JANUARYLOGISTICSTRANSPORTATIONREVIEW9 The global demand for all commodities has risen but supply is facing increased disruptions from weather, diseases, and geopolitical tensions along with increasing costs. At the same time, there is a geographical shift happening with increasing demands in regions such as India, Far East Asia, and the Middle East. Additionally, there is a never-ending quest in the industry to reduce loss (quality, freshness) and secure longer shelf life, which opens up even more new markets for growers. According to the World Bank, extending the shelf life of fruits and vegetables by just one day can save up to 40,000 tons of food. Cold chain logistics transportation providers range across the supply chain. There are global freight forwarders who offer end-to-end temperature-controlled transportation with limited owned physical assets. You have asset owners extending their end-to-end cold chain coverage from both ends. You have cold stores (temperature-controlled warehouse providers) that are moving from warehousing into trucking and even international transportation via ocean/air freight. You have ocean carriers who own the reefer containers (temperature-controlled ocean containers) and are moving outward to do trucking, cold storage, and even air freight. Why should you care? There is massive growth expected across the whole end-to-end cold chain. Cold storage for example is projected to grow at a compound annual growth rate (CAGR) of 14 percent, reaching almost 400 billion USD from 2023- 2030. Temperature-controlled trucking over the same period is expected to grow at CAGR 6.9 percent, reaching 5.6 billion USD. Even cold chain monitoring, visibility, and tracking of shipments to ensure an unbroken end-to-end cold chain is expected to grow at a CAGR of 16.6 percent until 2026, to 10.2 USD Billion.ConclusionWith huge growth potential, growing populations that need to eat, and changing climates, more and more investment dollars continue to flow into the cold chain logistics industry. While much of this is going into physical infrastructure (cold storage, trucks, ocean containers, and air), we will see more and more investment in technology to track/trace products, extend shelf life, and reduce food waste. So the next time you go shopping for your family's next meal, know that there are millions of people across the world, working behind the scenes to deliver that meal to your plate. With huge growth potential, growing populations that need to eat, and changing climates, more and more investment dollars continue to flow into the cold chain logistics industry
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