Julie Hanson, European director of the Global Cold Chain Alliance, the international voice of temperature-controlled logistics, analyses the trends shaping European cold chain logistics
Fresh produce logistics in Europe has seen fast and significant change in recent years, and we can expect further advances in the years ahead. The cold chain industry in Europe continues to grow as demand remains very high, particularly for cold storage. Major investments across Europe have seen high profile consolidations of businesses, construction of state-of-the-art new facilities, significant site expansions, the adoption of new designs and technologies to increase storage capacity, and the growth and modernisation of refrigerated vehicle fleets.
The cold chain in Europe is not only changing in size, but also evolving in response to the shifting needs of the fresh produce industry. Priorities have adjusted following five years of major disruptions, during which European businesses have navigated the impacts of the Covid pandemic, extreme weather, the outbreak of war, global trade relationship shifts and recruitment crises. The importance of resilience to disruption has risen to the top of the agenda with greater value placed on long-term relationships between cold chain operators and their customers, the development of resilience-based processes and skills, and use of technologies to minimise disruptions.
New technologies are facilitating advances in fresh produce logistics in Europe in several other ways too. Robotics, automation, smart refrigeration system analysis, temperature monitoring and product tracking are all supporting the industry’s continued development of services for customers and drive for operational efficiency.
Emerging technologies are also supporting the cold chain’s progress towards reducing carbon impact and emissions, variously driven by government legislation, customer requirements and energy market volatility. Technologies enabling the use of ‘clean’ fuel alternatives to diesel, from vehicle-mounted solar to cryogenics, to power refrigeration units on vehicles are being trialled and adopted, although not yet widely available.
There are several key trends that will shape how fresh produce logistics evolves over the coming years.
Trade wars
We can expect further adjustments to global trade relationships, potentially significant adjustments with repercussions around the world if the Trump Administration pursues additional tariffs on foreign goods and promotes domestic production. As the EU looks to the next phase of its food and trading relations, it is vital that food security and resilience are critical features of future trade policy. This must include properly appreciating the capacity and quality of infrastructure to transport and store fresh produce and supporting the improvement of cold chain infrastructure from reefer plug-in points to warehouse construction and transportation hubs across Europe’s Port network.
It may seem optimistic to talk about reducing trade barriers when so much of global discourse has taken a turn towards protectionism, but there are differences between the legitimate choices of a government about what tariff and other regulations they want to impose and the means by which they are imposed.
There is so much opportunity to reduce the administrative burdens involved in moving food, from digitising paperwork and process, to greater use of ‘trusted trader’ and virtual border technologies. GCCA will continue to champion efficiencies and process improvements in how food moves across borders, because that is the way to reduce disruption, reduce costs and improve traceability for all.
Sustainable solutions
Energy efficiency will remain a key trend shaping changes in temperature-controlled logistics over the coming years. The past decade has seen major improvements in the food supply chain using less energy and increasing the use of renewable sources, and investment in this progress continues.
Nonetheless, refrigerated storage and transportation operations rely on a secure, consistent, affordable energy supply. The recent energy crisis showed the vulnerabilities of the European energy system and we are urging governments and authorities across the Continent to ensure a clear prioritisation of food and pharmaceutical supply chain infrastructure in crisis planning for future energy shocks.
Skilled labour
The outlook for the future for the cold chain in Europe is strong, with continued investment into a progressive industry, continually increasing demand for temperature-controlled logistics in a warming world with fast-changing populations, and food supply chain resilience rising up the agenda for governments and businesses alike. The cold chain in Europe is experienced, forward-thinking, innovative and flexible which is an excellent platform for meeting the needs of the fresh produce market today and in the years to come.
However, like all industries, this future for the cold chain is dependent on the availability to businesses of the right people with the right skills. Logistics, including cold chain, is vulnerable to the skills and labour shortages across Europe. Our industry is working to promote the range of fulfilling lifelong careers available in cold chain, and to ensure quality education and practical training.
We were delighted to bring our Cold Chain Institute to Europe for the first time in 2024. The Institute has trained thousands of professionals in North America, Latin America and Australia and is now also supporting temperature-controlled logistics talent and skills development in Europe too. The next European intake of the Cold Chain Institute will begin their first year of the course on 2-5 September 2025 in Rotterdam (in parallel with the second year of the course for the 2024 cohort), to find out more about the programme visit www.gcca.org/events/gccf-cold-chain-institute-europe/
Our world is changing fast. As the fresh produce industry in Europe navigates these changes and prepares for the future, the cold chain is well positioned to support your logistics needs every step of the way.