Carriers and logistics providers deploy innovative technologies to support the growing perishables segment

Advances in cold-chain technologies that enable products to stay fresh while moving efficiently and safely across long distances are changing the face of global marketplaces and logistics. Pharmaceuticals and life science companies, the fastest-growing segment of cold chain users, use the cold chain to ship drugs across the globe and to receive blood and tissue for testing and for developing personalized treatments at long distances. Farmers around the world are seizing on opportunities by producing not just for local consumers, but to meet growing global demand.

Emerging markets are presenting new opportunities for pharmaceuticals companies, whose sales reached $1.3 trillion in 2018. Emerging countries like China, India, Brazil, Russia and Mexico accounted for almost 50% of growth in drug spending last year.

The United States is the largest exporter of agricultural products in the world, running a $21.5-billion surplus in the trade last year. With U.S. agricultural productivity growing faster than domestic demand, U.S. farmers and ranchers pretty much have to export if they are to turn a profit. Luckily, demand for fresh food in lower income countries is growing at a 17% annual rate.

Perishables were once the province of air cargo carriers, but research has shown that shippers are increasingly choosing the less expensive ocean option over air for perishables—and not only for agricultural products. Pharmaceuticals companies are under the gun to reduce costs, thanks to governmental efforts to slash health care expenditures. The shift from air to ocean for perishables has been estimated to total around 100,000 TEU, or 5.4 million tons, of cargo per year.