The food and beverage industry is enormous, including subindustries like grocery, restaurants, bars, catering, and more. The industry continues to evolve and adapt despite frequently changing consumer preferences and new, complex challenges. So, what’s currently affecting those in food and beverage? In this blog, we’re going to dive into some of the latest trends in the food and beverage industry.

TRENDS IN THE FOOD AND BEVERAGE INDUSTRY

CONTINUED COLD CHAIN GROWTH

SUSTAINABILITY

LABOR SHORTAGES IN FOODSERVICE

CONSUMERS ARE MORE COMPLEX

SUPPLY CHAIN CHALLENGES

ARTIFICIAL INTELLIGENCE & AUTOMATION

GROWING COLD STORAGE DEMAND

CONTINUED COLD CHAIN GROWTH

One of the well-known trends in the food and beverage industry is the continued growth of cold chains. Recently, a Grand View Research study shows that the cold chain market was estimated at USD $330,680 billion in 2023. Furthermore, it’s estimated to grow at a Compound Annual Growth Rate (CAGR) of 14.8 percent from 2024 to 2030.

Recently, there’s been an increased demand for temperature-controlled pharmaceutical logistics (think vaccines and biologics), rising demand for better food quality, including more fresh and frozen foods, and a surging need to reduce food waste. All this is anticipated to drive the market’s growth. 

In light of the pandemic, the risks of COVID-19 have made consumers more interested in healthier, less processed foods that will boost their immune systems. However, less processed foods mean more food products that will need temperature control.

Additionally, the frozen food sector looks to be growing. Besides filling home freezers, frozen foods are growing in restaurants. Restaurants are also providing new menu items for the frozen grocery aisle. In an American Frozen Food Institute report, 72 percent of frozen food consumers said they combine frozen and fresh ingredients in their meals.

Comparatively, shippers are also using more cold chain services to preserve the shelf life of their products, even when temperature-controlled transportation isn’t needed.

SUSTAINABILITY

Growing climate issues are making sustainability a common trend in almost all industries. Consumers are taking notice of the sustainable practices of companies. From ethical sourcing, carbon neutrality, to eco-friendly packaging, consumers want the brands they buy from to be sustainable. Additionally, food waste is a major contributor to greenhouse gas emissions globally, contributing to cold chain issues. This makes sustainability one of the top trends in the food and beverage industry.

Consumers Care About Sustainability

One way consumers can show their support for the environment is by choosing to purchase from sustainable brands. Consumers have shown they’re willing to pay more and be loyal to brands that invest in their sustainability efforts. In a survey by YouGov, more than half of consumers said they would be willing to pay up to 10 percent more on sustainable versions of regular packaged food and drinks. In another consumer survey, 78 percent of respondents agree that sustainability is import, with 63 percent stating they have adopted greener buying habits.

Food Waste Prevention

In fact, an S&P Global Ratings report says food waste contributes to 10 percent of emissions and that $1 trillion of food is wasted each year. Similarly, according to the U.S. Environmental Protection Agency (EPA), between 73 to 152 million metric tons of food get wasted each year in the U.S. The most wasted foods are fruits and vegetables, followed by dairy and eggs, with over half of all waste occurring in households and restaurants. In addition, the food processing sector generates 34 million metric tons of food waste per year. And over the past decade, the total U.S. food waste has increased by 12 percent to 14 percent.

To put it differently, the EPA said halving food waste in the U.S. would save 3.2 trillion gallons of water, 640 million pounds of fertilizer, 262 billion kilowatt-hours of energy, and 92 million metric ton equivalents of carbon dioxide. According to the Agency, reducing the waste of meats, cereals, and fresh fruits and vegetables would have the most significant impact.

Due to this growing issue, governments and businesses have been working hard to improve sustainability efforts. In July 2021, the Zero Food Waste Act was introduced to provide grants to businesses that significantly reduce their food waste. Additionally, in November 2021, the Food Donation Improvement Act was introduced to lower food waste by making it easier for companies to donate food instead of throwing it out.

Cold chain improvements have seen growing importance even outside the food and beverage industry. One example is UPS Healthcare developing a system and opening facilities to move medicines safely. Part of their plan includes using reusable cold chain packaging. In addition, Amazon is working on insulation packaging to reduce material waste and replace 735,000 pounds of plastic film, 3.15 million pounds of cotton fiber, and 15 million pounds of non-recyclable plastic.

LABOR SHORTAGES In Foodservice

Labor shortages are common among other industries, making this another relatable trend in the food and beverage industry. As a result, hiring workers in the U.S. is becoming near impossible. According to a recent market report, labor shortages are a top concern for 23 percent of food and beverage businesses. The most difficult positions to fill look to be those in the restaurant and foodservice sectors. It’s not just the hiring of new workers, but retaining them as well.

Workers are leaving the industry due to a combination of burnout, low wages, and a desire for better work-life balance. Because of this, restaurants and foodservice companies have had to reduce their hours or limit their menu, while consumers have felt it in longer wait times and less personalized service. With good customer experiences being paramount to a company’s success, resolving this issue is critical.

For this reason, advanced technology can help remove some redundant tasks and help supplement amidst labor shortages. For example, those in the bar sector are being introduced to self-pour technology, which uses RFID tracking and allows customers to pour their own beverages. .

CONSUMERS ARE MORE COMPLEX

Over the years, consumers and their choices in food and beverage and their preferred shopping habits, have become more complex. Because of this, there is a greater assortment of products than ever, with more items requiring temperature control as consumers move away from processed foods and look for fresher, healthier items. Consequently, the supply chain for grocery continues to evolve as the message from consumers is clear. They want what they want, when they want it, where they want it, and expect businesses to respond to their demands.

Continued Decline of In-Person Shopping

In speaking to consumer shopping preferences, it looks like online grocery shopping, food delivery, and food subscription boxes are here to stay. Many consumers prefer the option to receive food and beverage products at their door. For instance, in recent a study by Drive Research, the use of grocery delivery services in 2024 have risen 56 percent compared to 2022. Additionally, the use of grocery curbside or pickup in 2024 have risen 100 percent compared to 2022, further showing the decline of in-person shopping for food and beverage items.

Cost of Food and Beverage Products a Large Concern

Additionally, inflation and rising costs for everyday items, including food and beverages, have consumers rethinking how much and what brands they buy. For example, a recent study showed 54 percent of respondents stating they’ve reduced how much, and unfortunately, 20 percent said they were skipping meals to save money on food. Data from another survey found that 43 percent of consumers are cooking dishes with less meat to save on grocery costs. Others are choosing to purchase cheaper cuts of meat.

Private label brands continue to see growth as shoppers look to save money whenever possible. In fact, according to Numerator, private label brands hold almost a quarter of sales in the grocery sector. The Private Label Manufacturers Association shows that private label sales saw 2.5 percent growth compared to a decline of 0.8 percent by national brands in 2024.

Taste and Experience is a Must

Consumers want to feel good about what they eat. They want nutritious options that alight with their dietary preferences or health goals. In a survey but the International Food Information Council, 54 percent of consumers consider the healthfulness of food in their purchasing decision. Yet, even with the health benefits, they still want their products to taste good, as Datassential shared 35 percent of them purchase items that sound both delicious and healthy.

Consumers are interested in trends like unprocessed foods, natural ingredients, anti-inflammatory, and hydration. Alcohol-free and non-alcoholic beverages are also a rapidly growing trend, with 2 in 5 consumers abstaining from drinking alcohol.

Consumers generally want a positive experience with food and beverage products. While it’s fuel for the body, it can also serve as a source of community, entertainment, and more. In one study, 53 percent of consumers see experiences as essential to their personal lives, especially among the younger generations since the pandemic. They’re interested in trying to tastes and spices, products that bring a sense of nostalgia, or food and beverages that tie in with a story, as shown by the recent increase in pop-up restaurants and bars.

supply chain Challenges

Since the pandemic, supply chains have been seen more of the limelight. As shown by rising costs faced by consumers, food and beverage supply chains have been challenged by shortages of raw materials, disruptions like strikes or a bridge collapse, and a growing demand by consumers for transparency and speed.

Consumers are also becoming more interested in knowing where the products they buy come from. According to a study by IBM, nearly 70 percent of consumers want to see a brand’s sourcing practices. They want to know how the products they buy were manufactured. They’re looking for companies who show concern to how their manufacturing affects the planet’s life span and how their product is raised or grown. Consumers want to feel like the products they choose to buy will make a difference.

According to a Mckinsey report, food and beverage supply chains see supply chain disruption roughly once every three years. A 2023 risk report shows that supply chain executives are concerned about disruptions from climate change, environmental factors, and geopolitical conflicts. Another risk report shows that 73 percent of companies experienced higher supply chain losses within that past two years. Because of this, building supply chain resiliency is a huge trend for food and beverage companies.

ARTIFICIAL INTELLIGENCE & AUTOMATION

Artificial intelligence (AI) is a buzzword across all industries, but how could it affect food and beverage? One way is through providing clearer insights into shopper preferences, helping companies better market to them to grow brand loyalty. It can help with supply chain optimization, helping businesses better understand consumer demand and optimize production planning and management, reduce overstocking, and minimize waste. Some companies, like Campbell Soup Co., are using AI to help with product development, tracking data and discovering what its customers want next.

According to WifiTalents, 62 percent of food and beverage executives believe AI will have a significant impact on their industry within the next five years. With the uses for AI in the food and beverage industry being so extensive, it will be interesting to see how companies make use of it.

There’s also a lot to be talked about in AI and automation for the customer experience. Companies are looking into AI-driven customer service opportunities and ways to streamline customer interactions. You see a lot of this in the restaurant industry with the use of table side tablets, interactive menus, and mobile ordering and payment. AI is used in mobile apps to personalize menus and promotions based on customer preferences.

Growing Cold Storage Demand

The demand for refrigerated warehouses is continuing to soar to new heights. A report from Skyquest forecasts the U.S. cold storage market to increase with a compound annual growth rate of 13.5 percent through 2031, expecting to reach a value of $118.8 billion.

Temperature-controlled storage is critical to many sectors, from grocery to pharmaceutical companies. The growing demand for cold storage facilities comes the adoption of automation and technology, the popularity of ecommerce and demand for faster delivery, as well as online grocery platforms. There’s also a thriving demand for convenience foods – those that are usually chilled but ready to eat with little to no preparation.

STAY AHEAD OF TRENDS IN THE FOOD & BEVERAGE INDUSTRY

No matter the trends in the food and beverage industry, having a logistics resource, consultant, or expert is one way to stay ahead. Whatever phrase you want to use but ultimately, have support on your side for any complex situation. This is where a third-party logistics company (3PL), such as Trinity Logistics, can come in. We can help you find creative solutions to your logistics challenges.

Now, you’re likely wondering, “why work with Trinity Logistics?” For one, we’ve been serving cold chains for over 45 years! Whether you have a complex challenge or just need help with one shipment, we have the experience and quality carrier relationships to meet your needs.

You can also count on us to stay knowledgeable on what’s going on in your industry so you can stay updated too. We know that even in times of supply chain disruption, your industry doesn’t stop, so neither do we.

And lastly, what makes Trinity unique from other 3PLs and what our customers praise the most is our exceptional People-Centric service. We’re a company built on a culture of family and servant leadership, and that culture shines through in our service to you. It’s our care, compassion, and communication that you’ll notice and appreciate.

If you’re ready to have Trinity Logistics on your side for logistics support and expertise, no matter the industry trends, then let’s get connected.

Severe weather events are the new normal. Can the logistics industry handle more supply chain disruption?

It’s a hot, sunny day, and you’ve found the perfect spot on the beach to sit back, relax, and enjoy the cool breeze of the ocean waves. As you’ve sat down and unpacked your snacks, a thunderstorm rolls in, causing the lifeguards to hop off their chairs, stating the beach is closing. Plans = ruined.

We’ve all been there – when poor weather makes an inconvenient appearance. But severe weather is more than just rain on your wedding day. It’s more extreme, like high winds, flooding from heavy rain, wildfires, or droughts. Severe weather events are becoming more intense and commonplace, causing supply chains to struggle. Logistics professionals often face challenges like disrupted deliveries, product shortages, and skyrocketing costs.

From intense hurricanes to wildfires, the growing effects of climate change on supply chains are becoming impossible to ignore. In a report by Breakthrough, 39 percent of transportation professionals note severe weather as the biggest challenge to their networks, having primary concerns surrounding climate change and sustainability. With severe weather and its effect of supply chain disruption being a challenge for companies for the foreseeable future, they must take proactive measures to maintain resiliency. Is your supply chain prepared?

CASES OF SUPPLY CHAIN DISRUPTION FROM RECENT SEVERE WEATHER

Climate change has led to an increase in severe weather events. If you’re uncertain as to how much of an increase we’ve seen, let me share an eye-opening fact with you. The U.S. National Climate Assessment estimates that in the 1980’s, a billion-dollar extreme weather event would take place once every four months. Now, they occur once every three weeks! That’s not a lot of downtime in between events for affected supply chains to regroup.

Supply chain disruption from severe weather like the ones mentioned below is no longer a distant worry but a constant concern.

Droughts

In recent years, droughts have been impacting vital waterways. The Panama Canal, a critical path for global shipments, has experienced its worst drought since records began in 1950. Due to low water levels, restrictions were imposed, limiting heights and the number of daily vessels. Similarly, the Mississippi River has faced periods of drought and low water levels, making it difficult to transport goods.

Elevated heat and droughts affect not only waterways for transportation but also the production of goods. For example, coffee, cocoa beans, and olives have all recently faced drought conditions, resulting in a lower output of their respective products.

Wildfires

Often fueled by extreme heat and droughts, wildfires are now an expected annual danger to many parts of the world, like the Western U.S. and parts of Canada. Fire seasons start earlier and last longer while growing in intensity and size. Though the wildfires themselves are one problem, the spread of the smoke coming off them greatly expands their impact. The smoke reduces not only our air quality but also visibility, such as with the wildfires in Canada in 2023, which created widespread smoky conditions and delayed several shipments in populated locations such as Chicago and New York.

Hurricanes

Hurricane Season continues to bring more hurricanes and stronger storms each year. In fact, the National Oceanic and Atmospheric Association (NOAA) forecasts that the 2024 season will see 17 – 25 named storms, with four to seven being a Category 3 or greater. On average, there are 14 named storms with three being a Category 3 storm or greater.

Hurricane Ian was one severe weather event to cause supply chain disruption in the Southeast in 2022. Ian was a Category 4 storm when it made landfall in Florida and resulted in a 75 percent drop in shipments during its course. More than $416 million of citrus crops, a major good grown in the area, were destroyed by Ian.

Another Category 4, Hurricane Harvey, struck Texas in 2017. More than 50 inches of rain fell, breaking previous U.S. records and causing massive flooding, which closed roadways and many facilities. Several ports along the Gulf Coast were closed for nearly a week.

Even a Category 1 hurricane can impact supply chains. In July 2024, Hurricane Beryl hit South Texas, causing major flooding, power outages, and port closures.

Deep Freezes

Several locations have seen unusual deep freezes in recent years. In 2021, Texas saw a widespread freeze that their electric grid was unplanned for, causing a blackout for over two weeks. Many manufacturing businesses had to shut down, and railroads did, too. This caused significant supply chain disruption for transportation between Texas and the Pacific Northwest.

In 2022, New York experienced Winter Storm Elliott, which lasted roughly a week. Heavy snowfall and extreme cold temperatures caused power outages, resulting in a 40 percent decrease in shipment volume.

These are just a few examples of the impact severe weather has had on supply chains in recent years. Scientists believe that supply chain disruption from severe weather events will only intensify in the coming years as extreme temperatures and sea levels continue to rise.

HOW SEVERE WEATHER CAUSES SUPPLY CHAIN DISRUPTION

Severe weather events can wreak havoc on supply chains in many ways!

Infrastructure Damage

Roads, bridges, or ports can become damaged and make routes unavailable.

Shipping and Transportation Delays

The effects of severe weather, such as flooding or wind gusts, can slow or stop transit, causing delays and increased shipping times.

Shortages and Increased Costs

Damages and delays from severe weather can impact production, reducing inventory and capacity. Increased demand then increases the cost of materials, products, or shipping.

HOW SUPPLY CHAINS CAN STAY PROACTIVE

While you can’t control the weather, you can control whether your supply chain is prepared. Now is the time to be proactive and plan so your supply chain survives and thrives when severe weather strikes.

Assess Your Risk

Map out your entire supply chain to find gaps and vulnerabilities. Identify which companies and suppliers are involved and what severe weather events might impact them. If capable, look at previous data on supply chain disruption to learn from it. Are there certain sites that experience frequent disruption? How could you have been better prepared?

Have a Contingency Plan

Now that your supply chain is mapped and risks identified, it’s time to build plans for when disruption hits. Confirm that your supply chain partners have their own plan in place. Determine backup suppliers and partners for when current ones are affected. Find and select alternative transportation methods and routes. Once established, regularly assess this plan to ensure it will operate effectively.

Invest in Extra Insurance

This may seem like simple advice but invest in insurance to protect your business from losses. For example, flood or hurricane insurance will help you restore any damaged assets from a severe storm. Business interruption coverage can offer added protection, covering any lost sales during a disruption from severe weather.

Invest in Technology

There is a lot of technology available to help you be prepared for severe weather. Technology with Artificial Intelligence (AI) and predictive analytics can be useful to help you forecast and respond quickly when issues unfold. Leveraging AI and machine learning can help you reach a level of automation in which decisions can be made from data in a matter of seconds.

Create End-to-End Visibility

One of the most common weaknesses in supply chains is a lack of visibility. With the increase in severe weather and supply chain disruption, visibility is needed now more than ever. Having real-time access to tracking, carriers, suppliers, and inventory can help you identify any issues before disruption takes place.

A transportation management system (TMS) can provide the visibility you need. It provides critical data about your shipments and orders in real-time, giving you an advantage should a problem arise. This can help you make quick decisions to reroute shipments, avoid affected areas, and keep your customers informed.

Establish Open Communication

Establishing open communication among your supply chain partners now will benefit you when severe weather happens. Be transparent. Share details about when you receive orders, where they go, and when they are due.

Let partners know your backup plans and ensure they are prepared for any severe weather events. When there is a chance of supply chain disruption, send communications right away. The earlier you can make partners aware of the possibility, the more time they have to adjust their plans.

Collaborate with Resilient Partners

Are your supply chain partners prepared for potential disruption? Identify those who are ready to weather the storms and those who are vulnerable. Supply chain disruption isn’t going away, so you’ll want to raise your concerns and highlight your need for resiliency. If the risk is too great for your supply chain, you may consider looking into alternative partners to replace them.

WEATHER ANY STORM WITH TRINITY LOGISTICS

Working with a reliable logistics provider like Trinity Logistics is a great way to build supply chain resiliency and overcome severe weather threats.

Trinity Logistics has been supporting thousands of supply chains through all sorts of supply chain disruption for over 45 years. Severe weather events don’t scare us away, as we thrive on quickly solving issues like those that storms can bring. We also have a dedicated After-Hours Team to support your business at any time. Even if severe weather halts your shipping overnight, on a holiday, or weekend, we’re here to help. 

Our nationwide network of trusted carrier relationships will ensure your shipments arrive safely at their delivery locations. You can also count on our multiple transportation options to allow you to keep your goods moving through rain, hail, or snow. Lastly, our customizable Managed Transportation solutions can give you the real-time visibility you need to stay updated and make any changes in a matter of minutes.  

Don’t let supply chain disruption fog up your company’s goals. Try Trinity Logistics and see how our People-Centric service can light the way to success.  

At Trinity Logistics, we’ve always believed in doing the right thing. That concept is foundational and woven into the fabric of our company culture, from the services we provide to the impact we aim to make on the world around us. Being sustainable is an important focus for the company. It’s a responsibility we take seriously, so our sustainability initiatives are no afterthought.

Logistics Environmental Sustainability

The United Nations defines sustainability as “meeting the needs of the present without compromising the ability of future generations to meet their own needs.”

Our company takes that message to heart. We recognize the critical part we play in taking care of our communities, making a positive impact, and reducing our environmental footprint. We want to leave a positive legacy behind that extends beyond our logistics services. This includes our part in taking care of our environment and the communities we touch.

Here’s a glimpse into how we take action to be sustainable.

Paving the Way to Less Emissions with SmartWay

The SmartWay program by the Environmental Protection Agency (EPA) helps companies improve supply chain sustainability and reduce transportation emissions by providing a system to track fuel and emissions so companies can select more efficient carriers and logistics strategies.

Trinity invested in a SmartWay partnership in 2008, making this our earliest sustainability initiative. This partnership enables us to access and build relationships with SmartWay-certified carriers that commit to tracking and minimizing their emissions. We’re able to leverage that network, empowering our shipper relationships to make sustainable choices by using these SmartWay-certified carriers whenever possible.

Chemical Safety with Responsible CareⓇ

Responsible CareⓇ is the chemical industry’s environmental, health, safety, and security initiative, hosted by the American Chemical Council.

Since 2009, Trinity has been a proud member of Responsible CareⓇ. Some of the ways we take this sustainability initiative into action include;

• carrying pollution liability coverage to cover costs associated with pollution clean-up or other pollution-related liability claims;
• stringent carrier vetting to select the right carrier with the right requirements, like being hazmat-certified;
• ongoing required Team Member training to maintain knowledge of proper procedures, especially regarding chemical transportation.

Offsetting Carbon Footprint in Logistics with ClimeCo

ClimeCo is a non-profit organization that helps companies offset their emissions by donating funds towards sustainable projects.

Trinity Logistics understands that climate change is a pressing issue, so we’re committed to doing our part. In 2022, we began collaborating with Carbonfund, now known as ClimeCo. At the end of each fiscal year, we calculate the electricity usage of our owned facilities. With that calculation, ClimeCo helps us identify sustainable projects to donate to and offset the emissions we produced that year.

We’ve already made a difference by contributing to the Texas Capricorn Ridge Wind Project and N20 Abatement Project. In 2022 alone, we offset 143 tonnes of carbon emissions, and in 2023, we mitigated another offset of 90 tonnes. That’s a win for the environment and a win for future generations.  

Building Sustainability in Our Offices

Sustainability isn’t only about grand gestures; it’s about the everyday choices we make. That’s why we seek out sustainable practices within our own facilities.

We offer convenient battery recycling through a partnered vendor, ensuring they’re disposed of responsibly. We also ensure any used paint gets recycled instead of ending up in landfills.

We offer multi-stream recycling to our Team Members as well. Each Team Member has their own container to recycle any paper documents, while a large bin outside collects glass and recyclable plastics. Knowledge is power, so we educate our Team Members on proper recycling practices, too.

Our Facilities Team also aims to make sustainable purchases as often as possible. They’ve already converted any lighting in our owned offices to energy-efficient LEDs. They also focus on purchasing eco-friendly supplies that are compostable and certified sustainable. For example, they buy compostable paper plates and takeout containers for our weekly lunches.

Recognizing the Power of Remote Work for A Cleaner Environment

We recognize the many benefits of remote work. It fosters a vibrant company culture, empowers our Team Members with greater flexibility, and contributes to a greener future. By embracing remote and hybrid work positions, we help reduce emissions from daily commutes and cut our office space requirements.

Currently, around 50 percent of our positions offer remote or hybrid options, allowing our Team Members to focus on time with their families, contribute to their communities, and be part of this impactful sustainability initiative.  

Empowering Shippers with Sustainability

For Trinity, sustainability is about more than our own initiatives. It’s also about helping our relationships find sustainable options in their supply chains.

For each shipment, we’re able to offer guidance on the most efficient transportation modes available. We offer regular business reviews to analyze our shipper relationship’s unique logistics profiles to find and suggest efficiencies. Our Team also works closely with shippers and carriers to tackle deadheading, a large contributor to carbon in the trucking industry.

Additionally, we’re always looking to explore new ways to push the sustainability envelope for our relationships. Currently, we’re looking into platforms that can help us provide our shipper relationships an extra avenue to offset their carbon emissions, too, like Patch.io.

Ecovadis – Recognition of Trinity’s Commitment to Sustainability

EcoVadis, a trusted and globally recognized provider of business sustainability ratings, recognizes our dedication. In 2023, they awarded us a bronze medal, placing us within the top 50 percent of companies assessed. While we acknowledge this is a significant achievement, at Trinity, we aim to continuously improve. Our sights are set on achieving a silver rating in 2024, reflecting our ongoing commitment to continuous improvement.

The Trinity Logistics Difference

As our mission statement says, we’re dedicated to “improving lives and supply chains by solving tough problems.” Sustainability is undeniably a complicated challenge. The good news is that our passionate Team Members at Trinity Logistics thrive on tackling tough problems and overcoming obstacles. We’re relentless in our pursuit of solutions, and we won’t stop until we’re satisfied with the results.

We understand sustainability is a never-ending journey of improvement. That’s why you can count on Trinity Logistics to remain a leader in sustainable practices. We’re constantly expanding our sustainability initiatives and deepening our commitment to a greener future.

Our dedication to sustainability is just one facet of the Trinity difference. If this is how seriously we take environmental responsibility, imagine the level of commitment we bring to solving your logistics challenges.

The chemical industry faces challenges such as volatile raw material prices, shortages, supply chain disruption, and more.

The chemicals industry is one of the most important sectors, with 96 percent of all manufactured goods depending on them. With many moving parts and various stakeholders involved in the chemical supply chain, there are several challenges this industry faces. Here are some of the biggest challenges affecting the chemical industry.

CHEMICAL INDUSTRY CHALLENGES

• Managing Raw Materials
• Transportation Disruptions
• Regulations
• Large Amounts of Data
• Complex Supply Chains
• Lack of Visibility
• Climate Change Pressure

MANAGING RAW MATERIALS

The chemical industry, specifically chemical manufacturing, relies heavily on raw materials. Raw material prices, such as those for crude oil, are volatile and can fluctuate at any given time. This can make it difficult to forecast costs and budget and, keep prices competitive.

Keeping an adequate supply of these materials can be an additional challenge. Having too much inventory can potentially lead to chemical waste or spoilage while too little can make it difficult to meet customer demand.

TRANSPORTATION DISRUPTIONS

Chemical industry supply chains can be long and complex. They have many moving parts, making the transportation of chemical products a challenge. If you add in transportation disruptions, it makes it even more problematic.

While transportation disruptions usually occur at some point, in recent years, there’s been a lot of supply chain disruption caused by the onset of Covid-19.

According to a survey by the American Chemistry Council, 97 percent of companies reported having to change to their operations due to supply chain issues in recent years. Because of this, the chemical industry must stay on the tip of its toes and be able to adapt quickly whenever disruption may happen.

Also, global supply chains see the most impact from transportation disruptions. The chemical industry has more global supply chains than other industries, making this challenge more difficult.

REGULATIONS

Chemical products are often specialized and need specific storage and handling. In addition, they face strict regulations on the transport of their products, especially hazardous materials. These regulations are necessary to have in place to protect the environment and people.

In recent years, several high-profile incidents have involved the release of hazardous chemicals into the environment. This has caused governments to introduce more strict regulations. As a result, this has increased the costs for chemical companies to operate. It’s been estimated that chemical companies will have to spend more than $300 billion over the next few years to meet regulations.

The chemical industry must be more vigilant than ever to remain compliant. These increased regulations put more pressure on chemical companies already trying to meet global standards.

The chemical industry has to work with many different regulations and agencies, such as;

• Environmental Protection Agency (EPA),
• Food and Drug Administration (FDA),
• Good Manufacturing Practices (GMP),
• Occupational Safety and Health Administration (OSHA),
• and Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH).

LARGE AMOUNTS OF DATA

The chemical industry handles a lot of data. All manufacturing and operational data must be recorded, categorized, and processed. It’s estimated that chemical companies handle up to;

• 50,000 data points per raw material,
• 100 samples per test,
• 10,000 pieces of equipment per plant,
• 150 data points per customer!

This massive amount of data can be a challenge, especially with supply chain management.

COMPLEX SUPPLY CHAINS

The chemical industry is a complex one. It can include various kinds of chemical processes with products in all forms, from raw to intermediate, to finished goods. There are also many stakeholders involved, from chemical manufacturers to distributors.

Additionally, chemical products are often required to have very specific characteristics with little to no room for variations. Chemical companies also handle more complex items, like hazmat or temperature-controlled. Chemical supply chains are often worldwide, making them much more complex than other industries.

LACK OF VISIBILITY

Due to its complexity, lack of visibility can be a challenge for chemical supply chains. It can be difficult for chemical suppliers to know their inventory levels or how products are being used. Therefore, it’s important for chemical companies to have an accurate picture of their inventory and supply chain. Improved visibility can provide insight into opportunities to reduce costs without sacrificing quality.

CLIMATE CHANGE

The chemical industry is one of the top contributors to global carbon emissions. As the world becomes more concerned about climate change and sustainability, there’s more pressure added onto chemical companies that already face strict regulations.

There’s also a growing demand from consumers for more green and ethical products. For example, many companies are having to find alternative solutions for plastic or use recycled materials.

To keep up with the ever-changing market and demand, chemical companies need to change their processes. They must find ways to create less waste and more products that help reduce their environmental impact.

Also, as the planet warms, more severe weather is taking place. This is causing more disruptions to chemical industry processes. Whether causing a halt in transportation or a shortage of oil, climate change presents several challenges for the chemical industry.

OVERCOMING CHEMICAL INDUSTRY CHALLENGES

The chemical industry can be a tough market to compete in. To overcome these challenges, chemical companies need to remain resilient and competitive. As the world and market continue to change, they need to be able to adapt.

Finding like-minded, expert partners with applicable technology is ideal to overcome these challenges. A third-party logistics (3PL) company, like Trinity Logistics, is one such resource.

Trinity Logistics has been in business for over 40 years and has worked with chemical companies of all sizes. Trinity is a trusted partner to help chemical companies better navigate their complex supply chains. We’re well-versed in the chemical industry and can help find a quality carrier for your shipment or offer improved visibility through our customized technology solutions.

When choosing to work with Trinity, our Team Member experts keep you up to date on industry news, upcoming regulation changes, or any other relevant information your business needs to stay successful.

Additionally, we’re a Responsible Care certified partner, meaning we’re committed to providing you with the best service for your logistics and transportation management while staying committed to sustainability practices.

At Trinity Logistics, we’re not your typical 3PL. We’re invested in your business and are here to help your business succeed. If you’re looking for a like-minded logistics partner to help you overcome some of your industry’s challenges, we’re here and ready to help.

This past year was a tough year for the transportation industry. The tariff wars with China and the trade wars raise the risk of an economic recession. An economic recession would cause issues in the industry worldwide. Some researchers believe that all these issues have already led to an industrial recession. An industrial recession is an economic decline in manufacturing. Recently, there have been increases in trucking company bankruptcies, which has lowered capacity across the country. All these issues combined shows evidence that 2020 could start off as a tough year for both shippers and carriers. And it all starts with our politicians and their policies.

Politicians and Their Policies

Politicians and the policies they create dictate the US economy, effecting all industries. This past year the transportation industry saw effects because of the trade and tariff wars induced by the Trump Administration. With the upcoming election, many media outlets have expressed that President Trump will be forced to make deals regarding the tariff issues with China and the restructuring of the North Atlantic Treaty Organization (NATO) to avoid scrutiny. He claims deals with both are close to being ratified, but only time will tell how successful they are.

Climate Change

It is obvious that climate change will be a major debate topic in this election season. The top three Democratic candidates all discussed the need to combat the slowing of greenhouse gas emissions. This is an important issue that needs to be addressed, but it will have some serious effects on the freight industry. According to the Environmental Protection Agency (EPA), transportation generates the highest percent of greenhouse gas emissions in the U.S. at 29 percent. It is unclear how this will affect the industrial transportation industry.

While on the topic of climate change, it is also notable to point out the amount of natural disasters is on the rise. From 1980 to 2014 there was an average of 5.4 disasters per year. In the last five years that number has jumped up to 13.8 per year. From California wildfires to hurricanes ravishing the East Coast, these disasters stop shipping operations and raise carrier rates by going into extreme weather conditions.

Takeaways from this post:

• There is a lot of uncertainty in the transportation industry with the current issues in the world economy.
• Deals to end the tariffs effecting our industry are close to being made.
• Climate change is a hot topic and changes to transportation could be coming soon.
• Natural disasters are increasing ever year. Staying up-to-date on potential storms can help prepare your business.

It is important to note that politics and the economy have effects on the transportation industry. The industry is ever changing with new regulations, policies, or capacity issues. Which is why it’s important to work with a partner who stays up-to-date and helps educate their customers. Trinity Logistics is a member of many industry associations, including EPA’s SmartWay program, and attends conferences to stay educated on industry trends and changes.

Connect with us.