Running on Ice: Breaking down the state of cold chain

All thawed out

Artyc, manufacturer of temperature-controlled pharmaceutical and grocery storage devices, has published its inaugural report on the cold chain’s most urgent challenges. “Chain Reaction 2024” looks at what happens when the cold chain fails, as well as market forecasts, the evolution of pharmaceutical demands and fresh food moving farther. 

Among the findings: “40% of food requires refrigeration, 35% of pharmaceuticals require temperature management, 2.5% of global emissions are attributed to the cold chain (more than aviation). When this system works, it’s invisible. When it fails, the consequences cascade through society, from wasted resources to spoiled groceries, from compromised medicines to lost lives.”

The cold chain exists to prevent spoilage. Currently billions of dollars worth of products are lost annually as a result of spoilage in the cold chain, which, when functioning properly, extends shelf life, safeguards efficacy of drugs and reduces loss. However, the very infrastructure built to reduce emissions from waste is also contributing to climate change. The report found that, “Cooling systems consume about 5% of the world’s total energy supply and generate approximately 2.5% of global greenhouse gas emissions – surpassing the aviation industry.”

When it comes to pharmaceuticals, nearly half of new drugs need cold storage, and 45% of the top 20 drugs by sales already do. This includes common treatments like  gene therapies and mRNA vaccines, as well as a growing class of drugs like GLP-1s, which are used for diabetes and weight loss. These therapies are more sensitive, more valuable and often serve patients in more dispersed locations.

The other heavy hitter of the cold chain is food. Frozen food sales jumped by 22% in 2020 and have stayed well above pre-pandemic levels. People want convenience, long shelf life and products that are ready to go. That creates a ripple effect across the system: More refrigerated space, more last-mile cooling, and more staff and equipment to keep things moving.

Temperature checks

Friends of the Running on Ice world, Grip has expanded once again, marking another milestone in its growth. This time, the AI-driven perishable direct-to-consumer fulfillment and logistics company has ventured out West, opening a new state-of-the-art facility in Las Vegas. This expansion allows Grip to serve a broader range of customers by ensuring that perishable goods reach their destinations faster and more efficiently. The new facility is designed to get goods to 80% of the U.S. in under 24 hours, a critical factor for maintaining the quality and freshness of perishable shipments.

As the demand for perishable goods transportation continues to grow, industry reports show an impressive market forecast. According to Precedence Research, “The global perishable goods transportation market size accounted for $5.32 billion in 2024 and is predicted to increase from $5.77 billion in 2025 to approximately $12.06 billion by 2034, expanding at a compound annual growth rate of 8.53%.” This significant growth reflects the increasing importance of reliable, high-speed logistics solutions that can handle the complexities of perishable goods transportation across the country.

“This expansion strengthens our ability to deliver faster, smarter, and more cost-effective

logistics and fulfillment solutions nationwide,” said Juan C. Meisel, CEO and founder of Grip.

“We’re scaling quickly while maintaining the high level of service our customers expect. We’re

proud to work with the best and fastest-growing brands in the space.”

Food and drug

Hopping on the GLP-1 drug craze is ice cream manufacturer Two Scoops Creamery. It has launched the first high-protein ice cream with no added sugar and GLP-1 compatibility. The debut flavors are Rocky Road, Strawberries & Cream, Caramel Swirl, and Fudgy Brownie.

This brand aims to be different from some of the other low-carb and high-protein ice creams as Two Scoops has focused on texture and inclusions, the chocolate chips and bits inside ice cream, something that ice cream alternatives are often lacking.

“We’re bringing back nostalgic American classics made better,” says co-founder Gabe Zichermann in a news release. “We grew up loving ice cream but want a healthier option without compromise. I’ve lost weight and improved my health on Ozempic and Wegovy. Knowing Two Spoons has the right macros and is just as satisfying as other brands — that’s a win for us, our families, retailers, and our country. GLP-1s are the future, and we’re meeting this moment.” 

Cold chain lanes

This week’s market under a microscope is Raleigh, North Carolina, with a massive jump in reefer outbound tender rejections – hitting 20.69%, an 819-basis-point week-over-week increase. Reefer outbound tender volumes have fallen 28.93%. Depressed outbound tender volumes and increased reefer tender rejections have led to a capacity crunch in Raleigh, driving spot rates up.

As spot rates continue to increase, shippers can expect low contract carrier compliance as maybe 80% of carriers are accepting tendered volumes. Secondary and tertiary carriers on the routing guide will see more action until reefer outbound tender rejections return to a more manageable level.

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Shelf life

Snickers ‘Drafts’ hot NFL prospect Travis Hunter to drop cool two-pack 

Fresh Del Monte Produce’s Danny Dumas discusses the banana’s journey from harvest to consumption

Inside the climate tech financing ladder: part II – the disruptors 

Cold storage warehouse opens in Georgia

Dr. Praeger’s introduces better-for-you Pizza Stars

Wanna chat in the cooler? Shoot me an email with comments, questions or story ideas at moconnell@freightwaves.com.

See you on the internet.

Mary

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