Costly refrigeration, high fuel consumption and an unpredictable last mile: In temperature-controlled logistics there are many factors that cause costs to explode. To make refrigerated logistics profitable again in 2023, retailers and logistics companies need to rethink their approach. We show what is currently causing the greatest expenses in temperature-controlled transport and what options companies have to sustainably reduce their refrigerated transport costs.

Reduce costs in refrigerated transport

Transport from A to B is the second largest cost factor for logistics directly after personnel expenses. But it is not only the expenses for fuel, tolls or customs duties that flow into this item: To ensure that the goods arrive at their destination on time and undamaged, the vehicles must be regularly serviced and maintained. The appropriate equipment must be available for loading and unloading, and only special vehicles may be used for the transport of hazardous goods.

Temperature-controlled logistics faces the same challenges - but under more stringent conditions. Because while delays due to bad weather or heavy traffic are annoying and costly for non-refrigerated transports, in refrigerated transport the quality of the goods is at stake if delays are too long.

In addition, maintaining refrigerated transport vehicles is significantly more cost-intensive than maintaining a fleet of vehicles not designed for refrigerated transport. Companies must therefore find ways to reduce their costs in refrigerated transport without jeopardizing the quality of the goods or customer satisfaction.

What are the biggest costs in refrigerated transportation?

Actively refrigerated transport vehicles are used for transporting temperature-sensitive food and other products, especially on longer transport routes. "Actively" refrigerated means that the vehicle is equipped with refrigeration technology . This means that the cargo area is generally kept within the required temperature range by a power-operated refrigeration unit.

This is one of the biggest expenses in terms of costs: Since the unit runs on the vehicle battery, the refrigerated vehicle consumes significantly more fuel per kilometer traveled than an uncooled vehicle. The rising fuel prices since fall 2022 are therefore particularly problematic for retail and logistics companies with their own refrigerated fleet.

Increased fuel consumption has not only financial but also environmental implications: An Australian study conducted in 2022 on the subject of _{CO2 emissions} in food transport concluded that CO2_emissions in food transport are 3 to 7 times higher than previously estimated.

Maintenance of actively cooled vehicles

To protect consumers, the transport of temperature-sensitive foods is subject to a number of legal regulations. The most important of these are the internationally valid "Good Manufacturing Practice"( GMP) and the "Good Hygiene Practice" (GHP). The latter is the basis for the so-called HACCP concept. Companies that produce, transport or market foodstuffs are required by the Food Hygiene Ordinance to implement a HACCP-compliant system for hazard analysis and risk control in their company.

The common denominator of all relevant regulations is the compliance with the cold chain along the entire supply chain. Retail and logistics companies must therefore ensure that the vehicles used enable refrigerated transport in the ideal temperature range at all times of the year. This results in costs in the following areas:

• Refrigeration technology: Vehicles with permanently installed refrigeration units or refrigerated trailers for trucks are expensive to purchase and costly to operate.
• Telematics: In food transport, just as in the transport of pharmaceuticals, there is a obligation to monitor the temperature. This means that the transport vehicles must be equipped with costly telematics systems.
• High repair costs: Due to the technology installed in refrigerated vehicles, even the smallest shunting damage can necessitate costly repairs.
• Maintenance costs: Actively cooled vehicles require regular maintenance and recalibration of the technology.

Last mile transportation costs

In logistics, the so-called "last mile" refers to transport to the end customer. Since more and more people are doing their shopping online instead of in the store around the corner, the cost-benefit calculation no longer fits for many logistics companies: Since the small number of packages that have to be delivered per household is disproportionate to the high effort per delivery, the costs for the last mile account for between 30 and 60 percent (!) of the total costs for transport.

Reduce transport costs through route planning

One area where there is great potential for savings in transport costs is route planning. More and more retail and logistics companies are leaving route planning to special software that calculates the shortest transport route with the least amount of traffic. In this way, not only time but also fuel can be saved through fewer traffic jams or stop & go. Staff training in energy-saving driving is another way of reducing costs in refrigerated transport.

In addition, it is important to avoid empty runs and duplicate journeys as far as possible. Transport without cargo, for example, could be better avoided if companies worked together and coordinated their deliveries.

Duplicate routes are a problem especially in last-mile logistics, because end consumers are often not met or inadequate addressing makes delivery more difficult. In refrigerated transport, this is particularly problematic because deliveries requiring refrigeration cannot simply be dropped off at a neighbor's or left outside the door.

Reducing refrigerated transport costs in the last mile

Companies have been trying to reduce the cost of last-mile refrigerated transport for some time by using electric vehicles. Unfortunately, the cost-benefit calculation doesn't add up here because the refrigeration unit significantly limits the range of the traction battery. However, there is a cost-effective alternative that even goes hand in hand with sustainability goals: delivery services can significantly reduce their refrigerated transport costs by switching from active cooling to passive cooling for last-mile delivery!

As an expert for holistic cooling solutions works temprify has been working for many years to make the the last mile as cost-efficiently as possible. We achieve this goal through technical innovation. With temprify products, temperature-sensitive food can be reliably cooled for up to 96 hours and transported in insulated vehicles without refrigeration.

This automatically also means independence from fossil fuels over the last mile: Thanks to temprify, same-day or next-day deliveries can be made with electric vehicles (e.g., e-cargobikes) without any loss of range.

We eliminate yet another cost factor: conventional passive cooling solutions typically rely on dry ice to extend cooling time. Since dry ice is is not ideal from an environmental point of view and is also subject to wide price fluctuations, we rely 100 percent on high-performance cold packs.

Test now: The temprify solution for a cost-efficient last mile!

Reducing costs through energy-efficient storage

Temperature-controlled logistics includes not only transport, but also the storage of temperature-sensitive food and other products within the prescribed temperature range. Here, too, cooperation with selected partners allows us to harness the potential of passive cooling. With temprify, the cold storage facility becomes a buffer store for renewable energy. Our sustainable cooling elements serve as latent heat storage for solar and wind power, do not require maintenance and guarantee a stable energy supply even in the event of a power outage or blackout.

Cost-efficient cooling solutions from temprify

Temprify is an expert in passive commercial refrigeration solutions. We develop sustainable total systems that guarantee energy-efficient storage, a_CO2-reduced last mile and the lowest possible cost per delivery.‍

To the one-stop store for sustainable, cost-effective cooling solutions!

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