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 Patrick Burnson, Executive Editor
September 21, 2010 - SCMR Editorial

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

image
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 .(JavaScript must be enabled to view this email address).

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!

Recent Entries

The high-volume warehouse or distribution center that supports B2B, Omni-channel activities, direct-to-consumer shipments, and the Internet of Things all require a flexible and scalable supply chain in order to function at optimal capacity. The problem is that most of today's supply chains are made up of fragmented silos of information that compromise their ability to compete, be responsive to customer demands or seize new business opportunities.

As customers' demands constantly evolve, transportation and logistics (T&L) operations are being put under growing pressure to offer more efficient delivery services, while not compromising on customer service. Using findings from a research survey conducted among transport and logistics managers around the world, this report explores how a combination of mobile technology implementations for mobile workers, and process re-engineering efforts can elevate operations to the next level.

It's a fact - most best-of-breed WMS providers force you to pay every time you require a system change. Uncover five more dirty secrets many warehouse management systems providers don't want you to know. Download the white paper 5 Dirty Secrets of Warehouse Management Systems to discover these hidden truths and gain valuable information on considerations for evaluating WMS vendors.

Not Sure? The Whitepaper "Stay or Switch" Provides the Research Necessary for You to See How Well Your Provider Stacks Up!

Too many companies invest in ERP systems but do not achieve the business benefits they anticipated. Sometimes, the ERP solution never fits the way your people and processes work.

Article Topics

Feature · Global · Supply Chain · Logistics · Transportation · Economy · Trade · SME · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers 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. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.