Perishable goods, whether they are fresh fruits, vegetables, dairy products, or pharmaceuticals, require stringent temperature controls from the point of origin to the final destination. Any fluctuations in temperature, humidity, or exposure to contaminants can spoil the goods, leading to significant financial losses and safety risks, especially in the case of food and drugs. As demand for such products increases globally, particularly in regions like the Middle East, Asia, and Africa, the pressure to innovate cold chains is mounting.

“The perishables segment is extremely time-sensitive, and any lapse in cold chain management can result in spoilage. Airlines play a critical role in connecting global markets, but we face challenges with varying regulatory standards, inconsistent infrastructure, and sometimes even inadequate handling practices at airports and during transit,” Fabrice Panza, Global Cool Chain Solutions Manager at Etihad Cargo, stated.

Infrastructure gaps

One of the most critical challenges in cold chain logistics is the lack of consistent and advanced infrastructure, particularly in developing regions. Airports, ports, and warehouses play a crucial role in maintaining temperature controls, but many facilities lack state-of-the-art cold storage systems, automated handling equipment, or real-time tracking capabilities. This has resulted in inefficiencies, delays, and even product losses.

Fletcher Samuel, Senior Manager Cargo Business at Bangalore International Airport (BIAL), explained that significant investment is still needed in modernising facilities: “BIAL has been investing in building robust cold chain infrastructure to meet the growing demand for perishables in India and South Asia. However, there are still gaps in regional airports and last-mile logistics, which are crucial to ensure the seamless movement of perishable goods.”

The key to efficiency

The integration of technology in cold chain logistics has been a game-changer, enhancing efficiency, visibility, and accuracy in handling perishable goods. IoT devices, blockchain, and AI-powered analytics are driving improvements in monitoring and controlling environmental conditions throughout the supply chain.

“Real-time visibility is essential to ensure that perishables reach their destination in optimal condition. By using IoT sensors, we can monitor shipments at every stage of the journey, providing alerts in case of temperature deviations. Blockchain can offer a tamper-proof record of the product’s journey, which is especially important for pharmaceuticals and high-value perishables,” Satish Lakkaraju, CEO of Nexgen Logistics, underscored.

Regulatory hurdles

Cold chain logistics for perishables are heavily regulated due to the high risks involved in transporting temperature-sensitive products. From stringent customs regulations to differing standards for food safety, compliance with these regulations is often a time-consuming and costly process.

Joy Thattil Ittoop, Managing Partner at Callidus, highlighted the challenges facing the industry: “Every country has its own set of regulations regarding the transportation of perishables, especially food and pharmaceuticals. Navigating these regulations is not just about ensuring compliance but also about maintaining the integrity of the goods during transit. Any delays in customs clearance can lead to spoilage, particularly in countries where cold storage facilities at ports or airports are inadequate.”

Government initiatives

Governments play a crucial role in the development of cold chains, particularly through policy support, infrastructure investments, and the facilitation of public-private partnerships. In India, where the cold chain industry is still evolving, the Government of Telangana has been proactive in promoting logistics innovation.

Aparna Bhumi, Director of Logistics for the Government of Telangana, shared: “The government recognizes the importance of a strong cold chain for both the agricultural and pharmaceutical sectors. We are actively working with industry stakeholders to build modern cold storage facilities, streamline regulatory processes, and foster innovation through public-private partnerships. Telangana, in particular, has positioned itself as a logistics hub for perishables, and we are committed to making it a leader in this space.”