Running on Ice: Big changes for middle-mile food supply chains

In this edition: More states take advantage of food-resiliency grants; thermal energy storage as a service hits the market; and KFC has a wrap for everyone. 

Hello, and welcome to the coolest community in freight! Here you’ll find the latest information on warehouse news, tech developments and all things reefer madness-related. I’m your controller of the thermostat, Mary O’Connell. Thanks for having me!

All thawed out

Oklahoma has already capitalized on the U.S. Department of Agriculture Marketing Service’s grant. Now other states are following its lead, most recently South Carolina. The South Carolina Department of Agriculture found that the public had several priorities for the grants. The grants are part of the Resilient Food System Infrastructure Program, which supports expanding capacity for processing, transporting, wholesaling and distributing locally and regionally produced food products, including specialty crops.

“Strengthening the middle of the food supply chain in South Carolina will provide stronger markets for local farmers, increase stability for consumers and help ensure a strong future of agriculture in the state,” Hugh Weathers, South Carolina commissioner of agriculture, said in a news release.

South Carolina’s projects with the grant money will increase local producers’ abilities to process, aggregate and distribute products through the construction, expansion or modernization of cold and dry storage facilities; increase processing capacity, creating new distribution channels; and purchase and/or modernize equipment, packaging, food safety and labor needs for the middle of the food supply chain.

Temperature checks

Onsite Utility Services Capital has created a dedicated fund for thermal energy storage as a service for cold storage facilities. Onsite utilizes a synthetic phase change material that can store thermal energy down to minus 40 degrees Fahrenheit. The entire system qualifies for a 30% solar investment tax credit and an additional 10% for domestic content under the Inflation Reduction Act.

Onsite CEO Fritz Kreiss said in a news release, “Thermal Energy Storage can decrease a facility’s energy consumption by up to 40% by efficiently capturing and storing thermal energy during off peak hours and releasing the stored cold energy during the daytime allowing the chiller to not run during peak hours of operation. … We are launching Thermal Energy Storage-as-a-Service to save energy and reduce the carbon footprint for cold storage facilities. Removing the CapEx barrier means more cold storage facilities can achieve their carbon and energy reduction goals while retaining their capital for the company’s primary focus.”

Food and drugs

Who’s back? KFC heard the cries of the people and is doubling down on the two for $5 wrap combo by adding new wraps to the lineup. The newbies are honey BBQ and spicy mac and cheese (not to be confused with the mac and cheese wrap that came out in November). The classic and spicy slaw chicken wraps are staying the same. Users of the KFC app could find themselves with some free wraps if they play their cards right. 

Nick Chavez, chief marketing officer of KFC U.S., was quoted in a news release as saying, “No beef … KFC is THE destination for fried chicken wraps. We’re serving up bold new flavors and big deals to help curb the post-holiday blues and give your wallet a break.” 

As someone who only loves KFC for its biscuits, some of these wraps look pretty good. I might have to give them a second chance. 

Cold chain lanes

This week’s SONAR reefer market is Dallas. Coming off the holiday, most major markets are seeing a slight increase in outbound tender volumes and outbound tender rejections across all modes of transportation, but nothing greater than rates seen in December. Dallas is proving to be the outlier. Reefer outbound tender volumes have started rising after peaking at Christmas but are still down 2.88% week over week as shippers slowly get back in business. Reefer rejections, on the other hand, shot up for the holidays and haven’t come back down yet, rising 349 basis points to come in at 12.03% rejections. For most markets the brief increase in rejections wouldn’t have much impact on spot rates, but Dallas continues to be the outlier as rates have not decreased. Expect elevated spot rates for a while out of Dallas — that is until ROTRI rates begin to drop. 

Is SONAR for you? Check it out with a demo!

Shelf life

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Wanna chat in the cooler? Shoot me an email with comments, questions or story ideas at moconnell@freightwaves.com.

See you on the internet.

Mary

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The post Running on Ice: Big changes for middle-mile food supply chains appeared first on FreightWaves.

Source: freightwaves - Running on Ice: Big changes for middle-mile food supply chains
Editor: Mary O'Connell