18 American Journal of Transportation American Journal of Transportation ajot.com points to a more complex operating envi- ronment, signaling an industry operating under sustained complexity rather than isolated disruption,” the report states. Respondents Expected Areas of Trade Growth Over the Next 12 Months • The US - 42% • Canada - 30% • Mexico - 29% • Asia - 22% • Africa - 15% • Australia - 13% • Europe - 12% • South America - 8% • None of these - 5% “These expectations reflect both pol- icy-driven considerations like tariff expo- sure and shifting consumer preferences, with 32% of leaders noting increased pri- oritization of domestic products. While 31% plan reactive responses to tariff changes and 28% are proactively prepar- ing for potential impacts, both approaches point toward greater regional and in-coun- try concentration of trade,” the report states. “At the same time, cross-border trade remains foundational to the North American food system. Trade between the U.S., Canada, and Mexico continues to account for a significant share of over- all food movement.” Respondents Say AI is Delivering Measurable Operational Advantage • Returns on AI have matched or come close to matching company investments- 62% • Returns on AI have surpassed company investments - 24% • Returns on AI have not made up for company investments - 14% “The data indicates that AI is already delivering tangible results across supply chain operations...indicating broad vali- dation of these investments. These find- ings suggest that AI has moved from experimentation to performance mul- tiplier,” the report states. “Companies should consider accelerating integration of predictive tools into daily operations to strengthen reliability and competitive- ness, and to set themselves up for short- and long-term returns on AI.” Customers Want More From Their 3PL Providers • My storage and logistics provider(s) met most needs, but there are areas where we needed more support - 50% • my storage and logistics provider (s) met all of our needs - 28% • we had evolving needs that our stor- age and logistics provider(s) struggled to meet - 18% • our storage and logistics provider(s) did 410-863-0211 [email protected] jsconnor.com COUNT ON CONNOR John S. Connor, Inc., founded in 1917, is an industry-leading provider of logistical solutions for global shipping including customs brokerage, transport services, project cargo, and vessel agency. advantages that connected platforms such as Lynx Fleet deliver, rather than by legal obligation. AJOT: Is reducing the standard cold chain temperature from -18 ºC to -15ºC a realistic idea? YEO: The concept of moving from -18 ºC to -15ºC has generated meaningful industry discussion and reflects a shared focus on improving sustainability out- comes. As with any shift in established cold chain practices, it merits careful eval- uation to fully understand its impact across farmers and producers that cold chain utilization will yield higher returns on their product is often as important as the infrastructure investment itself,” he said. “The nicest buildings will be ineffective for the supply chain if there aren’t refrig- erated transport providers available, the ports and import/export terminals are inefficient, or if the roads are impassable for significant periods. Access to water, reliable electricity, and a talent pool are yet more considerations that investors must take into account when entering emerging markets. GCCA and the Global Cold Chain Foundation have been bridg- ing these gaps through capacity building, knowledge transfer, and connecting inves- tors with local partners for over 20 years.” The adoption of technologies such as RFID, sensors, cloud computing, IoT and automation has helped operators min- imize waste and maximize efficiency,” Brennan said. “There has been a strong correla- tion between the cold chain investment curve and improvements in efficiency. In the US, smart technologies are increas- ingly designed into new facilities, and they are also being applied to improve the efficiency of existing facilities,” he said. “Alongside embracing new tech- nologies, temperature-controlled logis- tics businesses are improving efficiency through holistic approaches including training, business culture, sustainable practices and facility design. Advances in efficiency are further ahead in individ- ual businesses than at an overall system level, and there is still plenty of scope for progress. We can expect continuous improvement at business and system levels for years to come.” The food and beverage segment dom- inated the TCL market in 2025. But the pharmaceutical segment is expected to register significant growth in the future, both Thocher and Brennan said. “The main difference between food and pharma supply chains is scale, not in value but volume, this does impact the relative size of the real estate need. Food and beverage logistics and pharmaceuti- cal logistics operate in distinct regulatory spheres, so many 3PLs tend to specialize rather than offer services across both,” he said. “That said we expect continued excit- ing growth and innovation in the phar- maceutical supply chain from everyday medicines to advanced biotechnology.” “The range of concerns across con- sumer behavior, trade policy, public health, climate, and workforce issues (INCREASE – continued from page16) (HEADWINDS – continued from page 17) (SURVEY – continued on page 42) (SURVEY – continued from page 16) different use cases and stakeholders. An important consideration is that many customers today are already using energy saving software modes, even in frozen applications, that deliver greater energy savings than what a 3°C rise in set point would achieve. Modes such as QUEST II Power-saving Mode and Car- rier Transicold’s FuelWise™ are spe- cifically designed to optimize energy consumption without compromising cargo integrity. However, if customers adjust the set point to -15°C, they cannot simultaneously run these energy saving software modes, or they risk operational issues. In effect, adopting a -15°C set point could offset the energy savings customers are already achieving through these available power saving modes. While ports and terminals have expressed interest, largely because a higher set point can reduce their energy costs and emissions, the broader ship- ping line community has not uniformly endorsed the move to -15°C. Realizing the full benefits of a higher set point would also depend on how equipment is operated, including the potential trade- offs with advanced optimization modes that are already delivering measurable efficiency gains today. From our perspective, it is import- ant that any evolution in temperature standards is grounded in a comprehen- sive understanding of food safety, cargo quality and operational performance. The U.S. Department of Agriculture identifies -18°C as the recommended temperature for safe frozen food storage, and raising the set point can introduce risks to cargo quality, shelf life and food safety. We see significant opportunity to advance sustainability through smarter refrigera- tion technologies and operational strate- gies rather than altering established food safety standards.
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