Freight News:
Running on Ice: Warehousing moves are the future
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
(Photo: Jim Allen/FreightWaves)
Lineage Logistics is making a play for e-commerce. Through the acquisition of eight cold storage facilities of Burris Logistics, Lineage has increased its cold chain e-commerce presence, as Burris is a 3PL that specializes in temperature-controlled direct-to-consumer fulfillment and distribution. This acquisition will add roughly 115,000 pallet positions, and the new facilities are primarily in the Midwest and on the East Coast.
This isn’t the first time Lineage and Burris have struck a deal. It’s actually the third. Lineage acquired the Lyndhurst, Virginia, location in 2020 and the Haines City, Florida, location in 2021. According to a news release, “Burris’s remaining portfolio will primarily consist of Honor Foods, its foodservice redistribution company, and Trinity Logistics, its freight solutions provider.”
Temperature Checks
(Photo: Jim Allen/FreightWaves)
During the height of pandemic-era transportation, warehouse space was noticeably absent. As shippers looked to store excess inventory, it seemed that warehouses were being built and expanded at lightning speed. Fast forward to now and warehouse construction has dropped to the lowest levels in nearly 10 years. High labor costs coupled with rising capital costs have led to a stop of newbuilds. Most everything that has already broken ground is expected to finish, albeit with some delays as there are still shortages of building materials.
Adrian Ponsen, director of U.S. industrial market analytics for CoStar, said: “The waterfall decline in starts is a story that won’t play out until the latter half of 2024 and into 2025. Industrial starts had reached their highest levels in 30 years during 2022, despite slowing in the final months of the year. The fallout late next year will become evident should a rebound in logistics warehousing demand collide with an acute dearth of supply. If occupancy rates return to near historical levels, tenants will be faced with paying materially higher prices for space.”
As for the rebound, the market to watch is Atlanta. It was the first indicator that the market was headed for a downturn and will likely be the first indicator of market recovery.
Food and drugs
(Photo: Jim Allen/FreightWaves)
The leaves are changing: Soup season is upon us. In the middle of soup season is none other than Thanksgiving — the one time of year it’s socially acceptable and encouraged to eat way too much food. If cooking an entire Thanksgiving feast is daunting but the urge for tasty fall treats is strong, Blue Apron has a solution.
One of the original meal kit delivery services has brought back its Thanksgiving menu this year, for carnivores and herbivores alike. A Thanksgiving dinner kit can be delivered right to your door. The boxes serve up to eight people and have all of the traditional staples and fixins, like turkey or ham, gravy, mashed potatoes, brussels sprouts, and pie. The plant-based version feeds up to 10 and includes different options.
Gone are the days of Googling how many days a turkey needs to thaw and fighting for the last sack of potatoes in the grocery store. The Thanksgiving meals are available for order Oct. 9 through Nov. 20. A subscription to Blue Apron is required to order a box.
Cold chain lanes
SONAR Tickers: VOTRI.USA, ROTRI.USA, FOTRI.USA
This weeks SONAR chart is a glimpse of the various Outbound Tender Reject Indexes. Not a surprise to most, but van rejection rates are on the rise, though still only at 4.44%, which is a step in the right direction. In contrast, reefer and flatbed rates have consistently been higher throughout the year. The sharp uptick in rejections in the middle of October is a result of produce season in its prime. Reefer rejections are headed down again but only briefly, till it’s time to get the holiday dinner staples to the grocery stores.
Rejection rates around 6%-7% show that the spot market is more in line with contracted rates compared to rejection rates on the dry van side of things where contracted freight is going to be priced better than the spot market.
Is SONAR for you? Check it out with a demo!
Shelf life
Blender Bites launches premium frozen smoothies and frappes into Walmart stores
Tyson Foods cuts 250 jobs in North Carolina, chicken inventories rise
YETI Drops 2 Sizes of Its Fan-Favorite M Series Soft Coolers
Advancement In Technology Is Driving The Cold Chain Logistics Industry
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
If this newsletter was forwarded to you, you must be pretty chill. Join the coolest community in freight and subscribe for more at freightwaves.com/subscribe.
The post Running on Ice: Warehousing moves are the future appeared first on FreightWaves.
Source: freightwaves - Running on Ice: Warehousing moves are the future
Editor: Mary O'Connell