All thawed out
In October 2024, U.S. East and Gulf Coast port workers went on strike. The strike ended after three days with both parties agreeing to go back to the negotiation table and extending the master agreement till Jan 15. Well, that agreement still has not been reached, and at the end of 2024 talks got rocky over the issue of automation. The International Longshoremen’s Association wants nothing to do with additional automation, and the United States Maritime Alliance would like more automation allowed to improve efficiency.
Talks have resumed in the new year, but it’s still uncertain what will happen, as neither side seems particularly willing to budge on its automation stance.
Enter Maersk. The container carrier is urging shippers to clear out reefer containers from East and Gulf Coast ports ahead of Jan 15. With large volumes of produce imported through those ports, shippers need to have a plan to get goods out as fast as possible to reduce the amount of spoilage and otherwise damaged cargo should another strike happen.
There are 12 days for two parties that have been working on this negotiation for months to somehow find common ground. The Biden administration in October said it isn’t getting involved in the dispute, and President-elect Donald Trump has come out in favor of the union. If there is a second strike, there will likely not be any interference from the executive branch.
Temperature checks
In early 2025, Maine International Cold Storage Facility is planning to open a new cold storage warehouse near the Port of Portland. It has chosen Taylor Logistics, a 3PL, to run the operation.
The new facility is designed with 106,000 square feet of space and can handle minus 10 F goods. Its location is near the port rail system and the facility provides much-needed outbound truckload freight from Maine. The location near the port was crucial for both Taylor Logistics and MICSF’s commitment to sustainability and reduced emissions.
“The Maine International Cold Storage Facility represents an incredible opportunity to deliver best-in-class cold storage and logistics solutions while supporting the local community and economy,” said Will Roberson, president and COO of Taylor Logistics Inc., in a news release. “We look forward to collaborating with the team behind MICSF to create value for businesses in the region and beyond.”
Food and drug
The new year is all about resolutions and self-improvement. Finding ways to boost those efforts and stay on track with goals has consumers turning to the frozen food section of the grocery store.
According to a survey commissioned by the National Frozen & Refrigerated Foods Association, “66% of Americans say pre-portioned ingredients help them achieve their health goals, while 75% cite cost savings as a top reason for choosing the frozen and refrigerated aisles – signaling a continued shift in shopping and eating habits.”
The survey also found that parents are emerging as sophisticated shoppers, with 77% using pre-portioned ingredients to meet family health goals.
Other findings include: “52% use January to reorganize their freezer and refrigerator spaces for the year ahead; 50% have switched to yogurt from traditional snacks for healthier choices; 75% rely on frozen options to streamline busy morning routines; 78% leverage bulk buying for budget management while reducing waste.”
Consumers want more options in the freezer aisle that are healthy, convenient and affordable – a trend that appears to be the new normal.
Cold chain lanes
This week’s market under a microscope heads northeast to Buffalo, New York. Capacity has loosened as a result of the holidays. Reefer outbound tender volumes have returned to consistent levels following the last-minute press for the holiday season. Taking the same path back to normality is the reefer outbound tender rejection rate, which has fallen from 50.55% on Dec. 27 to 37.42%.
Reefer rejection rates consistently hanging out at or above 20% for the past month does indicate an elevated spot market for reefer freight in Buffalo. The national average is 17.76% rejection rates for reefer loads. Buffalo is more than double that. Heading into January when there are snowstorms and inclement weather aplenty, capacity is likely to struggle over the next few weeks in Buffalo as lake effect snow season kicks into gear.
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Shelf life
Domino’s Pizza orders new energy efficient fleet
Two patents filed for improved electric refrigerated cargo transportation
Youngstown sells Cold Storage property to condo builders
Premier Protein expands frozen foods line
It’s about to get dangerously cold, even for winter
Wanna chat in the cooler? Shoot me an email with comments, questions or story ideas at moconnell@freightwaves.com.
See you on the internet.
Mary
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