b'4American Journal ofTransportation ajot.com(WARcontinued fromcould damage or render rotten5 cold chain trends transforming the industrypage 2) perishable cargoes. And there bookingsuspensionto/fromare few options for rerouting Russia is foodstuffs, medicalshipmentsalreadydestinedBy Emily Newton, Special to the AJOTandhumanitariansupplies.WetoRussia,astheBlackSea do,however,warncautionroute, like EU ports, is effec- The cold chain may be on the verge of acapable of the low temperatures needed to pre-on still placing bookings fortively closed. significant transformation. Market pressuresvent product spoilage. perishable cargo due to sig- Rerouting of reefer freightthat emerged during the COVID-19 pandemicNot every 3PL owns or has direct access nificant delays in key trans- isalsoachallenge.Packingand data-driven opportunities for efficiencyto these assets. Many do not specialize in cold shipment hubs that may damageandlabelingspecificationsare pushing businesses to reinvent their coldchain logistics, and non-asset-based 3PLs may thecargo.[EditorsItalics].fortheRussianmarketarechain operations to stay competitive. not own any of the products they use in day-The Danish containership opera- obviously different than vir- Thesearesomeofthemostimportantto-day business operations.tor added, Customs authori- tually every place else.coldchaintrendsrightnowandhowHowever, the 3PLs that can provide these tiesintheEUandUKareAnumberofperishabletheyre likely to transform the industry overniche services may become much more impor-nowinspectingallunitsto/ countries are likely to beginthe next few years. tant over the next few years. As demand for fromRussiatransitingtheirlookfornewmarketstocold chain logistics increases, so will demand terminals/portstoidentifyreplace Russia. South Africa,1. g rowingd eMand fort hird -P arty for 3PL providers that can offer these services sanctioned and restricted ship- which in recent years has cul- l ogistiCs inC oldC hainM anageMent to their clients. ments(mainfocusissanc- tivatedtheRussianmarket,The third-party logistics (3PL) market is tionedpartiesandrestrictedreportedlyhastemporarilygrowingfast. Apartfromaslightdownturn2. g rowth inf resh andf rozenf oodsorbannedgoods). Thisisastoppedfruitshipmentstoin 2019, the market has seen a year-on-yearo utPaCeso therP roduCts egMentsdirectconsequenceoftheRussia,althoughtherestillincrease in revenue every year between 2010Consumer demand is up in general, and sanctions, but there are alsois product still on route. Theand 2020. Its on track for further growth overlarge food retailers have benefitted from rising indirect impacts as all cargoquestion now for South Afri- the next few years. 3PL has become a greatersales over the past few years. Recent market isgettingdelayedandourcangrowers[andothers]isfocusforbusinesseswantingtooutsourceresearch indicates that food products requir-alreadycongestedtransship- howlongtheyshouldwaitsome or all of their cold chain shipping, logis- ing cold chain logisticslike fresh produce menthubsaregettingmoretoseewhetherfoodstuffstics and warehousing operations.and frozen food itemsare seeing even more pressured.Thisisaglobal(WARcontinued onCold chain logistics require specialized assetsgrowth than other segments.impact, and not only limitedpage 23) likerefrigeratedwarehousesandtrucks(TRENDScontinued on page 9)to trade with Russia.Rotterdam, Hamburg and a number of other European portshavealreadybegun refusing to handle containers destinedtoorcomingfrom the Russian Federation. Other European ports are expected to follow as the EU codifies the vessel ban.And the current chaos inWe Ship Pharmaceuticalsreefer cargo stands to widen. The United Kingdom has banned Russianowned,affiliated, charteredorflaggedves-sels from its ports. With theand healthcare productscaveatthatRussian-owned cargo will be free to move if it is aboard non-Russian ves-selsbut as Maersk pointedTrusted partner for out,nearlyallthirdparty calls to Russia have stopped. oticHow the increasingly cha- worldwide pharma logisscsshippingsituationplays out is still uncertain. Christian Roeloffs, CEO, ofContainerxChange,a leading container leasing and trading marketplace, pointed outtheopenendednature ofthefinancialmovesby- Secure Soluuonsthe US and others: The full implicationsofsanctions are not yet clear but the clo- - Proven Reliabilitysure of the SWIFT system to Russiawillmakepayments fromRussianpartnersmore- End to End Visibilitydifficult. The Ruble has also been in freefall after Russias central bank was cut off from- Regulatory Compliance itsreserves.Maritimetrade withRussiaandRussian businesses could be very dif-ficult in the months and even years to come.r erouting andn ewM arkets forP erishablesForshipperswithper-ishablesalreadyintransit the problems of rerouting are+305.407.3125 [email protected]. And the prob-lemsbeginwiththeabove mentionedclosureofthewww.amerijet.comSWIFTsystem.TheRuble is now worth less than a US centandwithaccesstoUS andothercurrenciescutoff getting paid is near to impos-sible.AndastheMaersk Advisorynotedthedelays'