New challenges for growing the nation’s “cold chain”

In an interview with SCMR, executives explained how the Global Cold Chain Alliance (GCCA) -- a confederation of several major industries engaged in temperature-controlled logistics – advances that mission.

By ·

When it comes to ensuring sustainable and safe transport of food and medicine, a single unified vision is required, said Andy Janson, chairman of the International Refrigerated Transportation Association (IRTA) and a past member of the Board of Governors of the World Food Logistics Organization (WFLO).

In an interview with SCMR, Janson also explained how the Global Cold Chain Alliance (GCCA)—a confederation of several major industries engaged in temperature-controlled logistics – advances that mission.

“The recession has caused this to be a buyer’s market for shippers,” he said. “So much of the freight had dried up, but there was still plenty of capacity out there. Rates became very competitive. Fortunately, fuel costs were drastically improving as the price of oil dropped, but we’re seeing costs creep back up now.”

And what about capacity? Janson said that he follows the Morgan Stanley Truckloads Freight Index, which is showing a six-year high in demand.

“Now, that the demand has surged, we are concerned that there will not be enough trucks in the cold chain to carry the holiday season loads,” he said.

Not that this signals a major uptick for the economy, he cautioned.

“Things will improve, but this may not be a dramatic rebound,” said Janson. “We haven’t even really begun the recovery yet. Consumer confidence deeply impacts the supply chain and until that fully recovers, we’ll be treading water. We are predicting carrier’s rates will gradually go back up.”

Meanwhile, the GCCA is working with its members to champion new export incentives. According to GCCA spokesmen, the one area where perishable commodities might see some benefit is the advancement of free trade agreements.  The U.S. currently has agreements with South Korea, Colombia and Panama that have been signed and are awaiting Congressional approval. 

“The Administration has indicated an interest in finalizing the free trade agreement with Korea, which has been stalled since its signing in 2007,” said Lowell Randel, GCCA’s director of government affairs.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

All Topics
Latest Whitepaper
Logistics Network Analysis
Logistics network monitoring is an important step in understanding what actually occurs throughout your supply chain.
Download Today!
From the January 2018 Logistics Management Magazine Issue
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and the most successful shippers will be those that are able to mitigate their impact on profitability. And, the right technology will play an increasingly vital role in driving efficiencies across the global logistics network.
The Future of Retail Distribution
Navigating the Reverse Supply Chain for Connected Devices
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
IAM, IoT and the Connected Supply Chain
There are three primary models of Identity and Access Management (IAM) technology that CTOs, CSOs, and Supply Chain executives are using to enhance their trading partner communities. While each leverages IAM and the IoT as core components only an “Outside-in” approach truly connects people, systems and things reliably and securely across the supply chain.
Register Today!
EDITORS' PICKS
State of Global Logistics: Delivering above and beyond
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and...
2018 Rate Outlook: Economic Expansion, Pushing Rates Skyward
Trade and transport analysts see rates rising across all modes in accordance with continued...

Building the NextGen Supply Chain: Keeping pace with the digital economy
Peerless Media’s 2017 Virtual Summit shows how creating a data-rich ecosystem can eliminate...
2017 NASSTRAC Shipper of the Year: Mallinckrodt; Mastering and managing complexity
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships...