December 2, 2024
Road Freight
Cross-border refrigerated transport has an important role in modern global supply chains, making sure temperature-sensitive goods such as pharmaceuticals, fresh produce, and frozen foods reach their destinations in optimal condition. While this service is essential, it comes with its own set of challenges that can complicate logistics operations.
In this article, we explore the challenges faced in cross-border refrigerated transport and the solutions that can mitigate these risks, ensuring goods arrive safely and within the required temperature range.
The importance of refrigerated transport
Refrigerated freight shipping refers to the transportation of perishable goods under specific temperature conditions. The primary goal of ‘cold chain logistics’ is to maintain product quality and safety throughout the entire supply chain. Whether it’s shipping vaccines that need to stay below -70°C or fresh seafood that requires precise temperature control, refrigerated transport is a complex but crucial process.
The global demand for refrigerated transport has been on the rise, driven by the growth of sectors like pharmaceuticals, food and beverages, and agriculture. According to a report by Mordor Intelligence, the global refrigerated transport market is expected to grow at an annual growth rate of 5.8% between 2021 and 2026.
Challenges in cross-border refrigerated transport
Cross-border refrigerated freight shipping comes with unique challenges. These challenges can affect the safety, efficiency, and reliability of your supply chain if not properly managed. Let’s explore some of the most common obstacles and how they impact the logistics process.
1. Regulatory compliance
When transporting temperature-sensitive goods across international borders, staying compliant with local regulations is one of the most complex challenges. Different countries have varying import/export laws, product safety standards, and customs procedures. The lack of harmonised standards across borders makes it difficult for businesses to ensure that their shipments are compliant.
For example, the pharmaceutical industry has strict guidelines under Good Distribution Practice (GDP), which vary between regions. Failure to meet these standards can result in delayed shipments, fines, or even product spoilage due to prolonged exposure to improper temperatures during customs clearance.
Solution: Expert knowledge and advanced documentation
The key to overcoming regulatory hurdles is having an in-depth understanding of the requirements in each country. Partnering with a knowledgeable freight forwarding company like us can help businesses navigate the complex landscape of international regulations. We can ensure that all required documentation, such as permits and certificates, are prepared in advance, reducing the risk of delays during customs clearance.
2. Temperature control
Maintaining a consistent temperature is arguably the most critical aspect of refrigerated freight shipping. Any temperature deviations during transit can compromise the integrity of the cargo, leading to spoilage, wastage, and significant financial losses. Cross-border transport compounds this issue as goods often face extended journey times, variable climates, and differing infrastructure capabilities at various stages of the route.
For example, a slight temperature variation of just 2°C can damage sensitive pharmaceuticals, making them ineffective. Similarly, fresh produce such as fruits and vegetables have specific temperature ranges that must be maintained throughout the entire transport cycle.
Solution: Advanced refrigeration technology and monitoring
The solution lies in investing in modern refrigerated containers and trailers that offer precision temperature control. These systems allow them to make adjustments on the go, ensuring that the cargo remains within the required temperature range.
3. Extended transit times and delays
One of the most significant challenges in cross-border refrigerated transport is managing transit times and the risk of delays. Border checks, customs clearance, and documentation errors can prolong transit times, increasing the likelihood of temperature fluctuations.
For perishable goods, even minor delays can result in product spoilage, leading to waste and financial loss. This is particularly challenging when dealing with food products with short shelf lives or pharmaceuticals that must remain effective throughout transit.
Solution: Optimised routing and customs pre-clearance
Here at AGI we optimise transport routes to minimise transit times, selecting the most efficient path for each shipment. Additionally, we offer customs pre-clearance services, allowing your goods to pass through borders more quickly. By managing all documentation ahead of time and using advanced tracking technology, you can reduce the risk of delays, ensuring the timely arrival of temperature-sensitive products.
4. Energy costs and sustainability concerns
Refrigerated transport is energy-intensive, with cooling units running continuously to maintain the necessary temperature for the cargo. Rising fuel costs and increased environmental scrutiny present additional challenges for logistics providers in this space. According to the International Energy Agency (IEA), refrigeration accounts for 15% of global energy consumption, making it a significant cost factor.
The industry faces pressure not only to keep energy costs in check but also to reduce its carbon footprint in line with global sustainability goals. Many countries are implementing stricter environmental regulations, which further complicate cross-border operations.
Solution: Energy-efficient equipment and green initiatives
To address these challenges, we are committed to offering energy-efficient refrigerated units that lower fuel consumption while maintaining precise temperature control. We also offer a bespoke carbon offset programme to our clients, reducing our environmental impact.
5. Risk of cargo damage and spoilage
Cross-border refrigerated freight shipping presents unique risks to the cargo itself. Sudden temperature changes during loading, unloading, or transit can compromise the quality of perishable goods. In the food industry, for instance, microbial growth can rapidly increase if goods are exposed to wrong temperatures, posing a risk to public health.
Additionally, mechanical failure of refrigeration units or unexpected power outages during transit can result in significant cargo losses, particularly over long distances where temperature control is critical.
Solution: Contingency planning and real-time tracking
The solution to mitigating the risk of cargo damage lies in comprehensive contingency planning and the use of robust real-time tracking and temperature monitoring systems, which provide instant alerts if any issues arise during transit.
The future of cross-border refrigerated transport
Cross-border refrigerated transport presents a range of challenges, from regulatory compliance to maintaining consistent temperature control, all while managing costs and minimising environmental impact. However, by employing the right strategies and technologies, these challenges can be overcome to ensure the safe and timely delivery of temperature-sensitive goods.
Here at AGI Global Logistics, we offer tailored solutions to meet the unique needs of our clients, whether you are shipping fresh produce, pharmaceuticals, or frozen goods. With our expert knowledge, advanced technology, and global network, we ensure that your refrigerated freight reaches its destination in perfect condition!
For more information on our cross-border refrigerated transport services, please get in touch with our team today. And for all of the latest AGI news, don’t forget to follow us on LinkedIn and Facebook!