Hello, and welcome to the best community in freight! Here you’ll find the most recent information on warehouse news, tech developments and all things reefer madness-related. I’m your controller of the thermostat, Mary O’Connell. Thanks for having me!
All thawed out
(Photo: Jim Allen/FreightWaves)
Lineage Logistics is making a play for e-commerce. Through the acquisition of eight cold storage facilities of Burris Logistics, Lineage has increased its cold chain e-commerce presence, as Burris is a 3PL that focuses on temperature-controlled direct-to-consumer achievement and distribution. This acquisition will add roughly 115,000 pallet positions, and the brand new facilities are primarily within the Midwest and on the East Coast.
This isn’t the primary time Lineage and Burris have struck a deal. It’s actually the third. Lineage acquired the Lyndhurst, Virginia, location in 2020 and the Haines City, Florida, location in 2021. In response to a news release, “Burris’s remaining portfolio will primarily consist of Honor Foods, its foodservice redistribution company, and Trinity Logistics, its freight solutions provider.”
Temperature Checks
(Photo: Jim Allen/FreightWaves)
Throughout the height of pandemic-era transportation, warehouse space was noticeably absent. As shippers looked to store excess inventory, it seemed that warehouses were being built and expanded at lightning speed. Fast forward to now and warehouse construction has dropped to the bottom levels in nearly 10 years. High labor costs coupled with rising capital costs have led to a stop of newbuilds. Most every part that has already broken ground is predicted to complete, albeit with some delays as there are still shortages of constructing materials.
Adrian Ponsen, director of U.S. industrial market analytics for CoStar, said: “The waterfall decline in starts is a story that won’t play out until the latter half of 2024 and into 2025. Industrial starts had reached their highest levels in 30 years during 2022, despite slowing in the ultimate months of the 12 months. The fallout late next 12 months will change into evident should a rebound in logistics warehousing demand collide with an acute dearth of supply. If occupancy rates return to close historical levels, tenants might be faced with paying materially higher prices for space.”
As for the rebound, the market to observe is Atlanta. It was the primary indicator that the market was headed for a downturn and can likely be the primary indicator of market recovery.
Food and medicines
(Photo: Jim Allen/FreightWaves)
The leaves are changing: Soup season is upon us. In the midst of soup season is none apart from Thanksgiving — the one time of 12 months it’s socially acceptable and encouraged to eat way an excessive amount of food. If cooking a whole Thanksgiving feast is daunting however the urge for tasty fall treats is powerful, Blue Apron has an answer.
One in every of the unique meal kit delivery services has brought back its Thanksgiving menu this 12 months, for carnivores and herbivores alike. A Thanksgiving dinner kit may be delivered right to your door. The boxes serve as much as eight people and have all of the normal staples and fixins, like turkey or ham, gravy, mashed potatoes, brussels sprouts, and pie. The plant-based version feeds as much as 10 and includes different options.
Gone are the times of Googling what number of days a turkey must thaw and fighting for the last sack of potatoes within the food market. The Thanksgiving meals can be found for order Oct. 9 through Nov. 20. A subscription to Blue Apron is required to order a box.
Cold chain lanes
SONAR Tickers: VOTRI.USA, ROTRI.USA, FOTRI.USA
This weeks SONAR chart is a glimpse of the assorted Outbound Tender Reject Indexes. Not a surprise to most, but van rejection rates are on the rise, though still only at 4.44%, which is a step in the correct direction. In contrast, reefer and flatbed rates have consistently been higher all year long. The sharp uptick in rejections in the midst of October is a results of produce season in its prime. Reefer rejections are headed down again but only briefly, till it’s time to get the vacation dinner staples to the grocery stores.
Rejection rates around 6%-7% show that the spot market is more consistent with contracted rates in comparison with rejection rates on the dry van side of things where contracted freight goes to be priced higher than the spot market.
Is SONAR for you? Test it out with a demo!
Shelf life
Blender Bites launches premium frozen smoothies and frappes into Walmart stores
Tyson Foods cuts 250 jobs in North Carolina, chicken inventories rise
YETI Drops 2 Sizes of Its Fan-Favorite M Series Soft Coolers
Advancement In Technology Is Driving The Cold Chain Logistics Industry
Wanna chat within the cooler? Shoot me an email with comments, questions or story ideas at moconnell@freightwaves.com.
See you on the web.
Mary
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The post Running on Ice: Warehousing moves are the long run appeared first on FreightWaves.