Do you know how to maintain the quality of your products while supplying the global market? International transport of temperature-sensitive goods is a huge challenge that requires the most advanced solutions in the logistics industry. If ensuring the quality of fresh food or pharmaceuticals is crucial for a business, cold chain logistics is what you need.
The cheapest transport is not always the best choice, as there is no cost efficiency if the quality of the product deteriorates by the time it reaches its destination. When transporting temperature-sensitive products, low price often means high risk. Professionally operated cold chain logistics is the right choice for such goods.
The importance of cold chain logistics: why is it essential?
Cold chain logistics is a specialised process for the transport and storage of temperature-sensitive products such as fresh food, pharmaceuticals and frozen goods. The aim is to keep these products at the right temperature throughout the supply chain, maintaining their quality and safety. This is particularly critical in the food and healthcare industries, where temperature control is essential to preserve the integrity of products.
Dynamic market growth
According to market research company Custom Market Insights, the global market for cold chain logistics has experienced explosive growth in recent years, and significant additional growth is forecast for the future. According to the company’s data published in August 2024, the market was worth around USD 321.5 billion in 2023, which is expected to reach USD 1245.2 billion by 2033. This represents an average annual growth rate of 14.5%.
It is worth comparing these figures with data from Global Information Inc. (GII). Based in Japan but with offices around the world, GII was the first market research aggregator in the world. According to their research, the global cold chain logistics market size was USD 280.25 billion in 2022 and is expected to reach USD 1,033.16 billion in 2031 from USD 323.97 billion in 2023. These figures confirm the Custom Market Insights report, with minimal variation.
Why is cold chain logistics becoming so important?
The demand for cold chain logistics is driven by several factors:
- Increasing demand for fresh food in Europe
People are increasingly preferring fresh, locally grown food, which increases the need for safe and fast transport of chilled products. Cold chain logistics is key to this, as it ensures that food reaches consumers fresh and healthy.
- Expansion in the health sector
Temperature-sensitive medicines, especially vaccines, are becoming increasingly important in our daily lives. Cold chain logistics are essential to ensure the proper storage and transport of these products, in order to preserve their efficacy.
- Tightening food safety standards
Increasingly, stricter regulations require food to be transported and stored at strictly controlled temperatures. Cold chain logistics helps to ensure that these standards are met, minimising the risk of spoilage and safeguarding consumer health.
- The growth of e-commerce
The growth of online shopping has a significant impact on cold chain logistics. Home delivery of fresh and frozen products is becoming increasingly popular, especially since the pandemic. Online retail outlets and the digital platforms of local grocery chains are driving cold chain demand and facilitating the continued expansion of cold chain logistics infrastructure.
- Technological innovations
Advanced technologies such as AI (artificial intelligence) and IoT (smart devices) are playing a key role in the evolution of cold chain logistics. AI is improving the efficiency of transport routes by taking into account real-time traffic data, weather forecasts and refrigeration needs. And IoT-based sensors continuously monitor the temperature, humidity and other environmental conditions of shipments.
What does HGL offer as a cold chain service provider?
HGL Group was one of the first logistics service providers in Hungary to enter the cold chain logistics market. The company has extensive experience in the storage and transport of temperature-sensitive products on both European and overseas routes.
One recent case for an international customer was for the transport of horseradish product from a city in Eastern Hungary. During transport, the food had to be kept at -3 degrees C at all times. HGL of course guaranteed the quality of the shipment, using refrigerated lorries to Hamburg and then refrigerated containers by sea to New York.
HGL ensures the safe export of between 1000 and 1200 containers of meat to the Far East every year. During the loading process, specialists pay particular attention to proper pre-cooling of both the meat and the containers used, as this is the only way to preserve the freshness of the meat during the long journey. The refrigerated containers used by HGL are already precooled to – 20 degrees Celsius to ensure proper storage conditions. This is particularly important because refrigerated containers (also known as reefers) are not capable of freezing, only of maintaining the temperature of the product they contain. Therefore, if the meat is not cold enough it may spoil during transport, regardless of the temperature set.
For transport, HGL also uses so-called genset chassis (i.e. trucks with generators built in), so that the refrigerated containers are provided with the necessary power while on the road. This is particularly important for longer deliveries where the reefers must reach the port without interruption to the power supply. The containers are then immediately connected to local power supply on arrival at the port, which process ensures the quality of the goods.
HGL’s logistics systems allow the temperature, humidity and ventilation of the container to be continuously monitored and controlled by a special control panel. This device immediately signals any deviation from the set temperature.
HGL’s intention is to continue its growth as a major cold chain logistics provider in the food industry as well as for pharmaceuticals. The company has recently expanded its activities into the warehousing and transport of temperature-controlled pharmaceutical products.