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Food safety & security In November, the U.S. Food & Drug Administration released three more rules pertaining to the Food Safety Modernization Act (FSMA), leaving two more rules of the total seven—sanitary transportation and food defense—for release in 2016. While the FSMA generally brings additional costs and procedural changes to the trade, most concede that the new rules will ultimately improve food safety, visibility, tracking and tracing, and recall response throughout the industry. It’s worth mentioning that risks associated with terrorism and the potential for attack on the global food supply chain are making compliance with the FSMA more palatable for many these days. Food security, meanwhile, is also getting more attention as governments, corporations and NGOs work to assure people have access to nutritious food. In 2012, DuPont put forth ambitious goals to improve global nutrition and food security by 2020. The company is investing $10 billion towards R&D to enhance agricultural sustainability, extend food freshness and reduce waste. Training small farmers in developing countries how to improve their crop yield is another facet of DuPont’s overall goals.

Cold chain integrity More perishable food is moving throughout the world and imports/exports are only expected to continue rising. The advancements in cold chain technology and transportation are supporting this growth. As controlled atmosphere technology becomes more sophisticated, greater opportunities are emerging for shippers, especially those who can now transport their perishable foods via ocean instead of air cargo thanks to more precise temperature, humidity and oxygen levels inside the shipping container. Major ocean carriers are investing heavily in their reefer business, buying new equipment and boosting their reefer fleets to hanwww.foodlogistics.com

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dle more fresh and frozen food shipments, not to mention pharmaceuticals, which are also migrating from more expensive air cargo to ocean with the innovations in controlledatmosphere technology. Key ports in every global region are also helping support the cold chain with investments in reefer racks and plugs and other infrastructure enhancements. More cold storage capacity is also coming online to support the increase in temp-controlled cargoes. Meanwhile, equipment manufacturers such as Carrier Transicold are introducing new equipment that is not only able to support the cold chain, but do it sustainably and cost efficiently too. The company’s NaturaLINE container refrigeration unit uses non-ozone depleting CO2 as the refrigerant, which has a global warming potential (GWP) of one, compared to the conventional synthetic refrigerants widely used today that have a GWP of 1,430 and 3,922.

Telematics, IoT Telematics and the Internet of Things (IoT) are creating better visibility of assets and cargo throughout the global food supply chain, improving freshness and providing more and better intelligence, which ultimately leads to more responsive and efficient logistics decision-making. (See Page 56). In November, Thermo King debuted the TracKing genset telematics solution at the Intermodal Europe show in Hamburg, Germany. Raluca Radu, product manager of marine telematics, explained that, “Telematics is becoming a crucial component of transport fleets across the world, where food safety regulations and enforcements are growing and shippers are looking for monitoring and management technology that can protect their cargo, fleets and reduce operating costs.” This fall, ORBCOMM, a global provider of machine-to-machine (M2M) and IoT solutions, acquired WAM Technologies, a provider of wireless management and control solutions for ocean reefer containers. The acquisition expands ORBCOMM’s cold chain monitoring solutions from trailers, rail cars and gensets to now include ocean containers. Maersk Line North America announced in March that it had selected WAM Technologies’ solution to enable remote management worldwide of reefer containers, gensets, chassis and other transport equipment moving by road, rail and sea.

How we eat, how we shop Consumer preferences are driving multiple changes throughout the global food supply chain. One important trend is consumers’ growing desire for “quick, easy and simple,” states customer science company dunnhumby. “People feel increasingly stretched, so think of convenience from the perspective of the consumer; making the entire shopping experience from planning through to use as simple, easy and quick as possible,” the firm suggests. Hello Fresh and Blue Apron are two examples of potentially disruptive business models in the global food supply chain, says dunnhumby. The weekly delivery services feature menu-planning, ingredients for the meals provided in the correct quantities, all brought to the consumer’s door. Another trend is consumers’ desire for more locally-produced food. Standard Foods is a new grocery store in downtown Raleigh, N.C., with produce, dairy, meat and seafood sourced directly from small family farms throughout the state and in the South. “Standard Foods’ mission is unmistakable—to reintroduce the food, farmers and artisanal production methods of the region,” states the company. Of course, e-commerce and mobile technology both are making significant impacts in our industry as well. Consumers want to order groceries online and it’s prompting companies like Amazon, Kroger, Walmart and Target to respond. Likewise, transportation providers, 3PLs and others are reengineering their capabilities and networks to support the changing logistics requirements. ◆

For more information: CARGO CHIEF, cargochief.com CARRIER TRANSICOLD, carrier.com COUNCIL OF SUPPLY CHAIN MANAGEMENT PROFESSIONALS, cscmp.org DIXIE EGG, dixieegg.com DUNNHUMBY, dunnhumby.com DUPONT, dupont.com FLEXE, flexe.com FLORIDA EAST COAST RAILWAY, fecrwy.com ORBCOMM, orbcomm.com THERMO KING, thermoking.com U.S. FOOD AND DRUG ADMINISTRATION, fda.org UBER, uber.com

FOOD LOGISTICS

• NOVEMBER/DECEMBER 2015

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12/4/15 10:54 AM

Profile for Supply+Demand Chain/Food Logistics

Food Logistics December 2015  

Food Logistics is the only publication exclusively dedicated to covering the movement of product through the global food and beverage supply...

Food Logistics December 2015  

Food Logistics is the only publication exclusively dedicated to covering the movement of product through the global food and beverage supply...