3 key trends in innovation of cool chain shipping

LOS ANGELES – With about one third of the world’s food going to waste each year at a cost of USD$1 trillion, air cargo hosts a vital role in reducing this amount both for environmental and business purposes. Stakeholders in air cargo estimate that as much as 45% of food shipped along supply chains goes to waste due to mishandling. Meeting this challenge is increasingly pertinent given continued rising demand for perishable food products worldwide by about 6% over the past year, even as demand for general cargo has fallen. At this year’s Cool Chain Association’s Americas conference, air cargo and cool chain equipment executives spoke on innovations and new ideas in cool chain shipping aimed at addressing challenges logistics stakeholders face in the shipment of perishables. Here are the top 3 trends guiding innovation across cool supply chains: #3: Smart and sustainable designs The use of smart and sustainably designed products in perishables shipments offers air cargo stakeholders a major opportunity to combat waste. Some of the main factors inhibiting proper handling of perishable food products can be boiled down to five points. Lack of standardization across shipping practices; Expensive costs; Unsustainable shipping methods; Low quality and inconsistent packaging; and Lack of visibility across the supply chain. To address these challenges, Aerotuf developed its AeroTHERM unit load device ( ULD ) container, which incorporates thermally insulated composite honeycomb panels to protect contents from extreme heat and cold. The material is highly durable, yet lightweight, while the container itself is frameless. The lack of solid beams and crevices prevents water from seeping inside and eliminates the need for pillar and beam construction, allowing for up to 75% less repairs per unit per year than other containers, according to Aerotuf VP sales and marketing Adam Barrington Spencer. The containers are also multipurpose, reuseable and recyclable. “It’s essentially a Yeti cool box for your cargo,” said Spencer. The company began testing 550 of the containers with its launch partner Air New Zealand about two years ago. In a study conducted by Aerotuf, it identified temperature variations in transit between its product and existing standard products used by the industry of almost 4°C one to four hours into the shipment, which increased exponentially as time continued during shipments. According to Aerotuf, users of its products have saved over $500,000, with this number anticipated to increase. For companies, this translates into increased revenue, reduced handling time, reduced food and material waste, reduced carbon emissions and eliminated need for most ancillary equipment. The company is coming out with a new version of its container next year that will be even better at controlling shipment temperatures, with further details on the product forthcoming. #2: Streamlined data management Beyond investing in smart products, stakeholders in air cargo and logistics know data is as valuable as oil. By leveraging information derived from data collection companies can streamline and reduce inefficiencies across operations, while also mitigating risk. However, some companies have run into the issue of struggling to collect, analyze and manage data in addition to carrying out these shipments. Technologies emerging today, such as Controlant’s reusable, real-time internet of things (IoT) data loggers are some options air cargo and logistics stakeholders can consider implementing in their operations. Controlant’s wireless loggers transmit data collected from cool chain containers in shipment to a cloud-enabled software platform, which allows shippers to track and trace conditions of temperature-sensitive and perishable products to ensure quality of the product. While old models of data collection require stakeholders to collect data and manage the use of a logger themselves, Controlant offers a closed-loop program in which it oversees all data collection and management. In terms of data analysis, Controlant’s intelligent cloud platform also provides customers real time insights into supply chains, such as which supply chains are most lucrative, how to cut down travel times, and where companies can reduce cost of shipping. This allows customers to focus on leveraging data to improve logistical programs. Controlant is well-recognized in the pharmaceutical industry with approval for pharma shipments by over 60 airlines and is now beginning to enter the perishable foods market. Thus far, the company has partnered with companies, including DHL , Walgreens Boots Alliance, Chipotle, Allergan, World Courier and Teva for management of food shipments like meat and seafood. #1: Certification commoditization While identifying and investing in tech and product solutions for cool-chain shipments are useful, it is important for customers to know these products are being leveraged responsibly across operations. Certifications have been developed for a variety of sensitive cargo shipments to ensure a standard level of quality shipping. First it was pharma. Then it was live animals. Earlier this year, the International Air Transport Association ( IATA ) launched its Center for Perishable Logistics, a.k.a. “ CEIV-Fresh ” certification, with launch partners the Airport Authority Hong Kong (AAHK), Cathay Pacific , Cathay Pacific Services Limited (CPSL) and Hong Kong Air Cargo Terminals Limited ( Hactl ). AeroMexico and Changi Airport ( SIN ) also announced plans to pursue the certification over the past two months, indicating a growing interest in the program. As more stakeholders in logistics and air cargo join these programs, Cathay Pacific Cargo products manager Gary Sze believes standards for shipping will be pushed higher and certifications commoditized. “Certifications will be an entry ticket in my opinion,” said Sze. “While existing certifications may allow for a larger range of temperature variance, many shippers are looking for a specific range of 0° to 2° Celsius.” This might be a high standard, he said, but this storage requirement could be developed into a sort of CEIV Fresh Platinum version of the existing certificate. This would not only enhance the quality of shipments, which now may vary more broadly, but also would give shippers a larger option of standards to choose from.

3 key trends in innovation of cool chain shipping

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