The transportation of items necessitating cold storage has increased significantly since the beginning of the pandemic. As the pandemic continues to persist, cold storage is still in high demand across the country. Learn more about cold storage and how the 3PL industry is adjusting.
Causes of Surge
During the pandemic, many Americans turned to home grocery delivery as a safe alternative to spending time inside grocery stores, possibly exposing themselves to the virus. Demand increased for all groceries, as more Americans were cooking for themselves while restaurants were operating at lower capacities. In fact, an estimated 70% of American households have been taking advantage of online grocery shopping. Additionally, many people have been purchasing more frozen food items to decrease the frequency in which they need to go to the grocery store.
As of late 2020-early 2021, the manufacturing and distribution of vaccines has necessitated a much higher need for cold storage, as they each have low temperature specifications. With vaccine distribution continuing for 12 months now and doesn’t look to be ending anytime soon, demand for cold storage is expected to continue growing.
Projected Growth in 2022
Based on previous years’ numbers, the average growth expected for cold storage for 2022 would be about 4% during a non-COVID year but due to the uptick during the pandemic, projected growth stands at 12-15%. Because of these unprecedented numbers, logistics management is as important as ever to guarantee the safe and smooth transportation of temperature-controlled goods around the country.
As Delta and Omicron variants continue to spread with no clear end in sight, Americans are expected to continue to opt for online grocery shopping, keeping the need for more cold storage options present in the market.
Even for those in the industry who do not directly offer cold storage transportation, this shift is forcing everyone in transportation to pivot. Cold storage is considerably more expensive than other forms, making it a challenging investment for many to make at this stage. It is also more complicated to maintain than other facilities, leaving fewer competitors in the cold storage market and fewer companies for consumers to choose from.
There are considerable technologies being developed to help make cold storage more efficient so that it can become more accessible. Most notably is the increased portability and flexibility of cold storage spaces which will give 3PLs the ability to use these units for both transportation and fixed storage, adding to their appeal. Until then, 3PLs will continue to partner with trusted cold storage providers to fulfill the needs of their customers.
Cold Storage in Greater Boston and Beyond
Looking for cold storage transportation in the Greater Boston area and beyond? LogiWorld partners with location and national cold storage providers to offer our customers the best transportation options for their needs. Contact us today with questions on your cold storage needs!