Cold chain logistics is one of the most challenging sectors in the already complex world of logistics and transportation, for the simple reason that so many things can go wrong. And when they do? Spoilage, rejected loads, lost revenue, and damaged end-customer relationships, to name but a few of the pitfalls cold chain shippers face. Despite the inherent challenges, the North American cold chain market was valued at $270B in 2023 and is expected to grow at a combined annual growth rate (CAGR) of 18.6% from 2023-2030. This growth rate also compounds the challenges for shippers and underscores the need for logistics strategies for maintaining the integrity of the cold chain.

The challenges faced by cold chain shippers are as varied as the products themselves. The requirements for transporting commodities as diverse as perishable and frozen foods, pharmaceuticals, chemicals, flowers, and live seafood will vary depending on the season, length of haul, time-sensitivity of the shipment, and other factors. 

Of course, the central challenge of cold chain logistics is maintaining a consistent temperature throughout the shipping process. For commodities that are shipped under the moniker “refrigerated,” temperatures are typically required to be maintained between 32 and 45 degrees Fahrenheit. It is critical that shippers specify the temperature range so their transportation provider or logistics partner can ensure the proper temperature is maintained. This also includes specifying if a product must be prevented from freezing while in transit. If allowed to freeze, the quality, safety, or efficacy of many varieties ready-to-eat meals and other food products could become compromised.

The temperature range for frozen freight is typically zero degrees Fahrenheit and below. For example, ice cream is typically held at a temperature between -10 and -20 degrees Fahrenheit to prevent the formation of ice crystals, which can affect the texture and consistency of the product.

In addition to maintaining proper temperature, shippers must also contend with equipment reliability, regulatory compliance, ensuring products are properly packaged, managing costs, sustainability concerns, maintaining visibility and coordinating communication throughout the shipping process, and transportation delays including weather, traffic, customs and other obstacles.

Many shippers turn to 3PLs and 4PLs for support in meeting the complex challenges of cold chain logistics. 3PLs and 4PLs, working in close collaboration with shippers, can deliver impactful strategies that reduce costs, increase efficiency, mitigate risk, and improve customer relationships and consumer satisfaction.

To ensure proper temperatures are maintained throughout the product’s cold chain journey, shippers can employ monitoring devices that not only monitor temperature but can also provide real-time data on humidity and other environmental conditions. For particularly fragile commodities, such as eggs or certain fruits, shippers may opt to utilize sensors that detect vibrations and shocks during transport.

Technology integration is essential to successful cold chain shipping, and underlies temperature monitoring, real-time visibility to shipments in transit, and visibility to data. 4PL/Managed Transportation Services providers leverage sophisticated Integration Platform as a Service (IPaaS) technology to connect disparate systems and unify the flow of data. In the case of cold chain shipping, this middleware can connect the shipper’s Enterprise Resource Planning systems (ERP) and Transportation Management Systems (TMS) with point solutions such as Real-Time Transportation Visibility Platforms (RTTVP), temperature monitoring hardware and software, Warehouse Management Systems (WMS), and more, to provide a holistic, real-time picture of the supply chain. Integration makes data available for reporting and for predictive and prescriptive analysis to anticipate and proactively address potential issues in the cold supply chain.

3PLs and 4PLs can also provide expanded access to carriers specializing in cold chain, as well as cold chain warehouses. While the refrigerated and frozen truckload market is far less fragmented than the dry van market, logistics partners can play a key role by leveraging established relationships and providing specialized expertise. Logistics partners can also provide route optimization services which help cold chain shippers ensure routes are efficient and reduce the risk of temperatures straying outside established bounds.

Understanding retail compliance requirements is key to successful cold chain logistics. Major retailers have implemented particularly stringent guidelines that can result in steep penalties for shipments that are delivered early or late, heightening the need for real-time visibility and communication. Some retailers, notably Walmart, will also assess penalties for incomplete shipments, once again highlighting the need for a fully integrated supply chain.

Depending on the commodity, shippers must adhere to strict regulatory compliance to ensure the integrity of their products and mitigate risk. The Food Safety Modernization Act (FSMA) regulates the proper handling of perishable food items. The Hazard Analysis and Critical Control Points (HACCP) management system, administered by the U.S. Food & Drug Administration (FDA), addresses food safety from raw material production through distribution and consumption of the final product. Navigating this regulatory landscape is critical for maintaining food safety as well as to mitigate the risk of fines, recalls or reputational damage.

Environmental regulations are an increasing challenge as well. Gov. Gavin Newsom of California recently announced that California-based businesses larger than $1B in annual revenue will be required to report their Scope 3 CO₂e transportation-related emissions. Integration is key to the ability to capture and report on this data.

There are other, external, risks to the cold chain. Cargo thieves are increasingly targeting food and beverage shipments, with thefts increasing nearly 50% from February 2022 to February 2023. Food inflation and the ease with which stolen goods can be sold on the black market make food and beverages an attractive target. Developing a high value/high risk cargo security plan to protect cargo and deter thieves is essential for successful cold chain operations.

In addition to retail and regulatory compliance and cargo security, cold chain shippers can leverage consultants to advise them on packaging solutions which protect product integrity from temperature changes and damage in transit.

Navigating the complexities of cold chain logistics requires a multifaceted approach to overcome the myriad challenges faced by shippers in transporting temperature-sensitive goods. With the North American cold chain market experiencing significant growth, shippers must proactively address the diverse and evolving requirements of various industries, including food, pharmaceuticals, and chemicals. As the industry continues to evolve, shippers must embrace innovative strategies and collaborative partnerships to navigate the dynamic landscape of cold chain logistics effectively.

Mick Noce is chief supply chain officer at Sheer Logistics. He has more than 30 years of experience in the field of supply chain and logistics.