Are We There Yet?

The ongoing labor crunch for truck drivers, warehouse personnel, port workers, and others employed along the cold chain is another unsettled area that some might say is a sort-of-new-normal, in that it will likely continue since there was a labor crisis even before the pandemic. No blanket solution currently exists, other than to wait until automation becomes advanced and affordable enough to replace those labor needs, particularly for logistics tasks.

The instability of the supply chain in 2021 is another area unexpectedly “not normal”, particularly after the lessons learned during a wild 2020. Delays and shortages last year could be blamed on panic purchasing by consumers during the pandemic and the inability to restock and replenish quickly. However, in 2021, surprise shortages of ingredients and commodities to make cold foods—particularly if they’re coming through a port—have already caused prices to rise and made availability unpredictable. In response, many cold storage facilities have set aside space for reserve products that can be distributed when the supply chain staggers.

Speaking of extra cold storage space, we ran the poll below last December on our website asking if cold warehouse operators were ready to store COVID-19 vaccines in anticipation of the nationwide inoculation program. Because so many operators foresaw the continued explosion of e-commerce, an overwhelming number (1022) said they were already planning to add extra square footage.

That’s perhaps the best example of where we are at the mid-point of 2021: gone are the days of steady, incremental changes that can be reliably marked on a calendar, and in its place is an industry frequently in flux. Anticipation, preparation, and strategic planning are the only way to stay ahead of today’s cold chain curveballs, and many of you are already taking the lead, ready for “The New Normal” whenever that might happen.

As we enter the mid-point of 2021 in an increasingly post-pandemic cold chain, the industry destination on many minds is “The New Normal”. Are we there yet?

The short-term answer is no, and the long-term answer might be the same.

Throughout 2020, consumers truly became comfortable with e-commerce, online ordering, curbside pickup, and doorstep delivery of cold foods, and that’s driving demand in 2021 for a lot more cold storage space—more than actually exists right now—preferably located in strategic areas to facilitate last-mile deliveries. Direct-to-consumer and e-commerce options are here to stay, and are forecast to grow substantially in coming years. The industry is still catching up and deciding the best route to handle this no-longer-niche option.