CARGOCONNECT-OCTOBER2024 - Flipbook - Page 20
COVER STORY
COLD CHAIN LOGISTICS EXCELLENCE
T
he global cold chain logistics market has witnessed unprecedented growth due to rising
consumer demand for temperature-sensitive
products like fresh food, pharmaceuticals,
and biologics. In 2023, the market was
valued at around US$286 billion and is
expected to soar to US$801 billion by 2030,
re昀氀ecting a compound annual growth rate
(CAGR) of over 14 per cent. This expansion
is driven largely by the surge in e-commerce,
especially for perishable goods, and the
growing importance of healthcare logistics,
including vaccines and biologics that require
strict temperature control.
In terms of regional growth, North
America and Europe lead the market, thanks
to their advanced infrastructure and regulatory frameworks. However, the Asia-Paci昀椀c
region is rapidly catching up, supported
by increasing investments in cold storage
facilities and the expansion of e-commerce.
China and India, in particular, are seeing
increased demand for cold chain logistics
as their middle-class populations grow and
require more temperature-controlled goods.
One of the key challenges is ensuring
the integrity of the cold chain throughout
transport. Technologies like Internet of Things
(IoT) sensors, real-time tracking, and Arti昀椀cial
20 | CARGOCONNECT OCTOBER 2024
Intelligence (AI) based monitoring are now
standard practices, enabling businesses to
ensure compliance and reduce waste. These
advancements allow for real-time visibility
of temperature data across the logistics
network, thus minimising spoilage and loss.
Energy consumption remains a critical
issue. Cold storage facilities and transportation contribute significantly to global
emissions, which is why companies are
increasingly turning to energy-efficient
solutions. Automated Storage and Retrieval
Systems (AS/RS), for instance, are helping
companies reduce energy use by up to 80
per cent, while also cutting labour costs.
The integration of renewable energy sources,
such as solar-powered refrigeration units,
is also on the rise, as the industry grapples
with sustainability concerns.
As the market evolves, the cold chain’s
ability to meet both current demands and
future growth will depend on continual
investments in infrastructure, technology,
and sustainable practices.
Rohan Bellikatti, Managing Director – India and Sri Lanka at LAMILUX
India, highlights the pressing challenges
facing the cold chain industry, particularly
in maintaining temperature integrity across
diverse geographies. He emphasises that
the cold chain, essential for transporting
temperature-sensitive products like food and
pharmaceuticals, faces signi昀椀cant hurdles due
to regional temperature variability, infrastructure gaps, and regulatory complexities.
“One of the primary challenges is the
extreme climates we operate in,” says Bellikatti, noting that varying temperatures
across di昀昀erent regions increase operational
complexity. “In places with harsh weather
conditions, you need advanced refrigeration
technologies, which drive up costs, and
seasonal shifts require constant adjustments
to maintain product integrity. It’s a constant
balancing act.”
He also points out the infrastructure
gaps in developing regions, which further
complicate cold chain logistics. “The lack
of adequate cold storage facilities in these
areas, combined with unstable power grids,
means we’re constantly facing the risk of
product spoilage. It forces us to invest in
costly backups, like generators, to keep
refrigeration stable,” Bellikatti explains. “In
addition, poor transport networks, especially
in rural regions, exacerbate the problem
by increasing delivery times and causing
temperature 昀氀uctuations during transit.”
