Food and beverage transportation brings unique supply chain needs. When it comes to these items that end up at grocery stores and restaurants, time, temperature and stability are major factors to consider. But on a basic level, a food and beverage supply chain looks something like:
- Raw goods/agriculture
- Warehouse
- Processor/Mill
- Distributor
- Retailer
- Consumer
A couple of supply chain steps may be skipped, combined or accelerated depending on the type of food or beverage, but that is the general flow. Of course, within food and beverage logistics are even more differences depending on the product. Temperature-controlled - AKA reefer - trucks or containers are necessary for many food and beverage items, while others can withstand more variation. Produce, meat, seafood and dairy are among goods that must also be delivered on tight deadlines to ensure freshness at their destination. On the other side, shelf-stable goods have more leeway on time and temperature. And in any of these cases, how these goods are packed with proper blocking and bracing is key to avoid damage to the packaging and goods themselves.
How are food products transported?
Just as with other consumer goods, food products can be transported a variety of ways. The most common worldwide in terms of "food miles" is via ocean freight, accounting for nearly 60% of all food miles traveled in a 2018 study. Next is road - AKA truckload - at around a third, followed by rail at about 10%, and finally air at just .16 %. The FDA indicates about 15% of the American food supply is imported, so that accounts for most of the ocean mileage. Once in the U.S. though, the tilt is heavily toward trucks, accounting for about 70% of food transportation with railway coming in a distant second at 17%.
Getting more in depth, a large amount of food and beverage transport requires a so-called "cold chain," which refers to a string of temperature-controlled environments. As many types of food and beverages fall into the perishable category, traversing a cold chain on time is vital to successful food and beverage transportation. That cold chain consists of warehouses and staging areas, but also the bread and butter of the transportation avenues. Food and beverages account for well over half the market share of refrigerated transportation in the U.S. And while it tilts heavily toward truck transport, there are perhaps lesser-known intermodal options as well.
Temperature-controlled intermodal - and any temperature-controlled option mind you - not only works for refrigerated and frozen items, but also for higher temperatures. Therefore, it's basically whatever temperature is needed to maintain product integrity. Some non-perishable items can use traditional dry transport, and as a work-around to temperature-controlled, shipping during winter months along certain routes can be done this way with perishable items, too, as long as the temperature is monitored.
What are the challenges in the food and beverage supply chain?
The food and beverage supply chain - as with other industries' supply chains - faces numerous challenges, but a number of food and beverage challenges are more unique. For instance, food and beverage regulations - which are in place to protect the public from food-borne illness - are plentiful and include customs clearances beyond other goods. Additionally, with shortages of all types of containers and trucks an ongoing issue, reefers have been no exception. The difference is, it's harder to be creative with alternatives when temperature control is a necessity. And just as with other products, food and beverage supply chains are vulnerable to any external factor - whether it's COVID-19 issues, shifts in consumer demand, backups at ports, weather events, etc. In fact, because of the often perishable and time-sensitive nature of food and beverage transportation, losses and shortages are far more likely when issues arise.
Need help with food and beverage supply chains? Here at InTek Freight & Logistics, we have experience transporting these goods in a variety of ways. Tell us about yourself and your needs, and we'll be happy to discuss your company and answer any questions you may have.
Learn more about freight & logistics with our Freight Guides. And here are a few example supply chain-related articles to get you started:
- Do Tech Companies Have a Supply Chain?
- Logistics and Supply Chain Trends: 2022 and Beyond
- Logistics and Supply Chain Strategies for 2022
