Cold chain: Global demand for perishables on the rise, says report

Patrick Burnson, Executive Editor -- Logistics Management, 8/27/2008 8:50:00 AM

WASHINGTON, DC—Public refrigerated warehouse (PRW) storage capacity is increasing around the world, according to the International Association of Refrigerated Warehouses (IARW) Global Cold Storage Capacity Report.

“This growth suggests a worldwide trend toward increasing cold storage capacity driven by a greater reliance on the cold chain,” said Tori Miller, one of IARW’s key researchers.

 According to Miller, the report also marks the first time that IARW has been able to collect accurate data for the cold storage industries in China and India since 1998.

 “In both countries, there has been significant increase in capacity since then,” she told LM. “China shows a 20 percent increase, and India’s capacity has more than doubled since 1998.”

Overall global capacity in 2008, including the 25 original countries surveyed, is approximately 247.77 million cubic meters (8,749.97 million cubic feet).

“It is also important to note that today’s dynamic distribution logistics systems rely on information technology, cross-docking and other methods to achieve higher velocity and reduced storage times,” noted the report. “As a result, growth in the use of PRW space is even greater than it appears based on a straightforward review of capacities.”

IARW has collected data for the 2008 report from over 40 countries, more than ever before. In addition, IARW has compiled profiles of national PRW markets in 18 countries, including several emerging and developing markets. This is also the first year that the report has shown a full decade of industry growth.

The association monitors PRW capacity in 45 nations and regions. In those places where data was collected in 2006, capacity increased in 17 places while it remained flat in six nations. Data in other areas was insufficient to draw any conclusions. Areas showing the greatest increases were France, Germany, the Netherlands, Spain and Brazil. Total global capacity for these countries for 2008 is 6,350.32 million cubic feet (179.82 million cubic meters), which represents a 15 percent increase from 2006.