Running on Ice: Big cold storage moves for 2024

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 

Big moves are on the horizon for Lineage Logistics as the temperature-controlled storage provider wraps up 2023. The Michigan-based company is seeing a $30 billion initial public offering for next year. For comparison, the largest public comp for Lineage is Americold Realty Trust, which carries a market cap of $8 billion. That company went public in early 2018, according to an article by FreightWaves’ Todd Maiden.

The beginning of 2024 holds strong promise of some banger IPOs. Most anticipated are Reddit, Shien, Skims and Rubrik.

The global cold storage construction market is currently estimated at $11.6 billion and is expected to reach $32.8 billion by 2030, according to the “Cold Storage Construction — Global Strategic Business Report.”

With so much anticipated growth, Lineage could be going public at the exact right time.

Temperature checks

A U.K.-based pharmaceutical packaging company has stepped up pharma shippers’ expectations with its new range of products. These products fall in the PharmaPac range and will primarily focus on last-mile delivery challenges for the pharmaceutical industry.

The new PharmaPac line is designed to protect temperature-sensitive medications, vaccines and biological samples. Most pharma packaging can do that, but the special thing about this line of products is the amount of time the temperature can remain stable.

According to a European Pharmaceutical Manufacturer article, “PharmaPac Genesis — Hydropac’s first ‘pre-qualified system’ (PQS/Validated), comprises a polystyrene box, ice packs, a universal payload tray, and a groundbreaking thermal filter pack. This packaging solution safeguards refrigerated payloads (2-8°C) for a minimum of two days during transit.”

For me the best thing about the ice packs is that they’re recyclable.

Food and drugs

Waste in the food supply chain removes about 30% of food from the U.S.’s food supply. That is alarmingly high. If only there were something to cut that number down. Well, there might be. New research from an international team of scientists has found that raising the temperature of frozen food by 3°C, could reduce food loss and cut carbon emissions by over 19 million tons a year.

The new report, “Three Degrees of Change,” says changing frozen food temps from minus 18 C to minus 15 C can save the equivalent of carbon dioxide emissions of 3.8 million cars a year.

Toby Peters, professor of cold economy at the University of Birmingham and Heriot-Watt University, who led the research, said in the report: “Globally, 12% of food produced annually for human consumption is lost due to a lack of proper temperature management. On top of this, an increasing global population raises the demand for food, while the rapidly warming planet will reduce food production. It is of the utmost importance that we find ways to combat food loss to achieve global equitable food security. Freezing food is one such method, but we need to achieve this as energy efficiently and sustainably as possible.”

Cold chain lanes

This week’s reefer market is starting to sing the blues as the Reefer Outbound Tender Rejection Index has dropped 1,715 basis points week over week. Rejections falling to 11.9% after being above 20% heading into the holiday definitely hurts spot rates in the market. There is a chance that spot rates didn’t see the volatility as carriers took off time for Thanksgiving. Capacity is going to be significantly looser next week as rejections continue to fall and reefer outbound tender volume levels haven’t taken a substantial increase.

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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 cold storage moves for 2024 appeared first on FreightWaves.

Source: freightwaves - Running on Ice: Big cold storage moves for 2024
Editor: Mary O'Connell