Time to plan

THERE HAVE still been plenty of challenges and changes this year. Still, our industry’s positivity about the future was clear in the State of The Cold Chain survey with 91% feeling positive about the long-term future of the temperature-controlled logistics industry in the UK. 

Energy, the dominant challenge of last few years, has dropped down the priority list but the costs are still high and we are worried about the long-term planning on this matter. We must remain alive to the potential for further market volatility, particularly since the Government scaled down the Energy Bill Relief Scheme last year. Cold chain operators of all sizes continue to invest in future-facing energy efficiency and renewable energy solutions, increasing their resilience to gas price volatility and seeing the benefits in lower energy bills. 

There was welcome news on this front when Government launched a consultation on extending the Climate Change Agreement (CCA) scheme. The cold storage CCA has successfully incentivised businesses to invest in energy efficiency, resulting in significant energy efficiency improvements and important tax savings. Many operators now need to advance to more complex energy efficiency measures and the continuation of the CCA scheme will support momentum towards a net zero UK cold chain. 

The journey towards a net zero cold chain is complex and completely unchartered territory. Sharing ideas and experiences is helping operators to find the right solutions for their businesses. The Cold Chain Climate Summit, at Warwick University in March created a valuable forum for these discussions. More than 200 cold chain professionals gathered to examine emerging low-carbon technologies, the direction of policy and regulation, and the impacts of global cold chain inequality. On the same day, we were proud to recognise the businesses, facilities and individuals leading the way towards a sustainable future in our Cold Chain Sustainability Awards. Both the Climate Summit and the Awards will return in 2025

This year has also seen positive progress made in recruiting, retaining and training cold chain people in the wide range of skills needed for the industry’s future. We launched our Emerging. Leaders programme, Starting in 2024, two outstanding individuals working in temperature-controlled logistics will be selected each year to participate in this program. These rising stars will benefit from a comprehensive package designed to cultivate their leadership potential. We are delighted to award two winners in September, Valentina Florina-Drescanu from Oakland International and Kale-Yves Chrouch from Lineage Logistics. Florina-Drescanu is Oakland’s operations manager, based in Bardon, while Chrouch is a depot support manager.

The Generation Logistics campaign, of which the Cold Chain Federation is a proud partner, has begun its third year of finding the next generation of logistics talent, backed by the Department for Transport. The commitment from both the Government and industry on this issue is crucial, and we ensured cold chain voices were heard at the highest levels at our ‘Celebration of People in the Cold Chain’ parliamentary reception in May. More than 150 representatives of the UK cold chain were joined by Ministers and MPs in the House of Commons, talking with politicians and policymakers about our sector and how it is evolving for the future, and about the people who carry out so many crucial roles within our industry. 

However, the strong progress on energy efficiency and developing the cold chain workforce has been counterbalanced by continuing uncertainty around future goods movements between Great Britain and the European Union, not least the complexity of goods movements in and out of Northern Ireland. 

From the end of April, many EU food businesses supplying the UK will have a substantial new administrative burden and considerably higher costs to send temperature-controlled products here. We can expect many to stop exporting to the UK at all, particularly small artisan producers. Those that do continue may see up to £1,000 added to the cost of one multi-consignment lorry entering the UK and will likely need to pass on a significant portion of those costs with higher prices.

We can also expect cost increases and food wastage as a result of unnecessary delays, disruption and paperwork confusion, because cold chain operators and their EU customers are still waiting for clarity in a number of areas about what they will actually need to do. We are still waiting to hear from the Government about how some key parts of the new process will work, and we have serious concerns about the readiness of the Border Control Posts. The UK’s cold chain operators have identified strong solutions to many of the foreseeable problems; we are working with the new Labour administration to look at how we can reduce red tape and minimise the bureaucracy.

In 2024 we have seen a number of important, constructive lasting impacts from the crises of the past four years. The cold chain has become increasingly resilient, positive about the future, better understood by Government, and is benefiting from increased collaboration with peers and partners. As we look to the challenges and opportunities of 2025 and beyond, the Cold Chain Federation will be at your side to provide expert advice, unmatched support and a unique cold chain network. 

Phil Pluck, chief executive, Cold Chain Federation

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