In a globalized world with an international market for climate-sensitive produce, how can we transport such goods from one location to another? Refrigerated transportation, otherwise known as reefer freight, is becoming an increasingly important industry with the growth in demand for climate-sensitive goods from around the world.
Refrigerated transport is a way of shipping freight that requires specific, controlled temperature. These vehicles have transformed many industries by allowing businesses to transport sensitive goods around the world. Do you want to find out more about the importance of refrigerated transport in a globalized world? Let’s take a look!
The History of Refrigerated Transportation
The vehicles that transport the temperature sensitive goods have in-built refrigerated systems that maintain the goods at a particular temperature.
This design goes back to the 1800s. This primitive form of the modern-day refrigerated truck would be filled with ice and salt to keep the goods at a cooler temperature.
It is unsurprising that the process was mostly ineffective at keeping the conserving the sensitive goods. This often led to significant losses in the value of the goods that were transported in this way.
However, jump forward to the end of the 20th century, increasingly efficient ways of refrigerating transportation vehicles were developed. This progress in technology has resulted in the emergence of a growing industry. This has become known as ‘cold chain logistics’.
Cold Chain Logistics
First of all, what is cold chain logistics?
The cold chain is defined as “the transportation of temperature-sensitive products along a supply chain through thermal and refrigerated packaging methods and the logistical planning to protect the integrity of these shipments”.
This means that cold chain logistics is not only about transporting goods from A to B under temperature sensitive conditions. It’s also important to ensure that the specific goods are handled appropriately, compliant with the regulations and moved efficiently and effectively to keep up with demand.
In a globalized world, it’s not only important to be able to ship goods from Chicago to New York. But also from the United States to Germany. Every shipping order requires different methods and techniques to ensure the refrigerated transport service is carried out correctly.
Finally, cold chain logistics has also provided economic development to developing countries by allowing to access new markets and consumer goods.
What’s the Value of Refrigerated Transport Industry?
There is no doubt that the refrigerated transport industry is one of the fastest growing industries in logistics.
According to the latest figures, the market for refrigerated transport is projected to grow at a compound growth rate of 12.44 percent annually in the next years.
While the market for refrigerated shipping is set to reach 3.25 billion tons by the year 2022.
There are many reasons why the growth of refrigerated transport is showing no signs of letting up. The central importance of refrigerated transport to the globalized world is no longer in doubt.
The Importance of Refrigerated Transportation
Many goods that previously could not be transported without great difficulty can now be transported efficiently and effectively with refrigerated transport services.
There are three main ways in which refrigerated transport demonstrates its importance to the global world economy. Let’s take a look at – why refrigerated transport is so important?
1. The Number and Variety of Goods
There are many goods that deteriorate, lose value or become irrecoverably damaged unless they are transported in a refrigerated system. One of the reasons why refrigerated shipping so important to the modern economy is that it caters to so many different varieties of goods and products.
Many people immediately think about food produce, especially meat and dairy products that require cold temperatures. However, there are many medical, and pharmaceutical goods that also require temperature sensitive settings to maintain value. Other temperature controlled goods include valuable pieces of art, chemicals, and care products.
2. Increased Demand for Perishable Goods
The question of demand and supply can sometimes be a question of what came first the chicken or the egg.
The same applies to the increased demand for perishable goods. While demand has increased, this is partly influenced by the ability to transport perishable goods effectively refrigerated transport.
Nevertheless, refrigerated transport is a growing industry due to an increasing demand among consumers for goods that were previously only a fraction of the market.
According to the transport and distribution researcher, Sharan Raj, “Some of the key factors contributing to the growth of the global perishable goods transportation market are the increase in the demand for frozen foods, growth of the organized retail sector, rise in international trade, and increased concern about food wastage”.
3. Compliance and Regulation Legislation
With the introduction of increasing compliance and regulation legislation by governments around the world, the need for refrigerated shipping has become even more essential.
The Food and Drug Administration (FDA) has recently been assessing food safety issues with regard to the transportation of goods. This has resulted in the 2015 Food Safety Modernization Act (FSMA). This has been described as “the most comprehensive food transport rule ever imposed on the industry“.
The FDA has flagged up potential problems of freshness and food poisoning. This has subsequently caused many food retailers to transition to refrigerated transport vehicles to ship perishable foods. The FDA has also required drivers of refrigerated vehicles to have temperature management and reporting training.
Our Courier Service
Now you know the importance of refrigerated transportation to the globalized economy. This growing industry is defining the future of the freight sector.
With this understanding of the value of refrigerated shipping, you can make sure you ship your temperature sensitive goods in the appropriate way.
If you have any more questions on refrigerated shipping, get in touch with us today.