Written by Christian Allred, Article No. 122 [UNCTAD Transport and Trade Facilitation Newsletter N°102 - Second Quarter 2024]

Refrigerated container monitoring solutions can help reduce global food wastage in the cold chain and help stakeholders achieve corporate environmental, social and governance (ESG) goals, says ORBCOMM’s Christian Allred, SVP & GM, Maritime IOT.

Actionable data and insights provided by marrying digital tracking and management devices—telematics—and Internet of Things (IoT) technologies have a vital role to play in achieving targets to reduce global food wastage. The integrated hardware and software solutions also offer the connectivity, scalability and versatility to enhance the resilience of the food supply chain and help boost its green credentials.

Global food wastage figures remain too high. The Food and Agriculture Organization of the United Nations (FAO) estimates that around 31% of all food produced for human consumption in 2022 was lost or wasted before it reached our plates—amounting to a financial loss of almost US$1 trillion—even as hundreds of millions suffered poverty, hunger and malnutrition. Stress factors such as conflict, economic shocks, extreme weather events and population growth continue to compound the problem of food wastage and severely test the resilience of the global food system.

The United Nations Sustainable Development Goal 12.3 (UNSDG 12.3) recognises that wastage is a major issue across all stages of the food system. It sets ambitious targets to halve per capita global food waste at the retail and consumer levels and reduce food losses along production and supply chains by 2030. However, in 2022, seven years on from the adoption of the UNSDGs, 14% of all food produced for human consumption was lost during production, post-harvest, processing, and transportation (and 17% was wasted in retail and by consumers, particularly in households).

On the other hand, digitalisation is on the cusp of transforming the farm-to-fork process. Advanced technologies, such as IoT devices, sensors and data analytics are increasingly employed to optimise farming practices and automate processing to improve yields and reduce loss. Of course, to enhance global food security, foodstuffs still need to reach markets in optimal condition.

Considering sea transport alone, Drewry estimates that of the 139 million tonnes of perishable food transported in 2022, 88% was carried in refrigerated (reefer) containers. With so much of our perishable food transported in reefer containers, across land and sea, it is crucial to reduce in-transit spoilage. Reefer telematics solutions can play a significant role by better protecting foodstuffs as they travel through the cold chain.

Reducing food wastage

Reefers were introduced in the 1970s. According to P&S Intelligence, by the end of 2023, the global reefer container market had grown to just over four million containers (twenty-foot equivalent units, TEUs) and was valued by VynZ Research at USD 16.5 billion. Over the last 15 years, telematics has become increasingly prominent in the reefer segment as shipping lines, beneficial cargo owners (BCOs) and others have sought to optimise operations and reduce spoilage.

The latest generation of IoT solutions integrates advanced devices, sensors, communication technologies, and data analytics to remotely monitor and control the internal atmospheric conditions of reefers regardless of their position within the cold chain. They can regulate variables, for example, temperature, humidity and air quality, to preserve foodstuffs and safeguard consumer health. Importantly, such cargo care can also extend the shelf life of fresh produce to help reduce retailer waste, another factor which affects food security and supply chain resilience. From a broader sustainability perspective, reducing the amount of produce rejected or returned due to poor quality saves the greenhouse gas (GHG) emissions that would have otherwise resulted from shipping replacement cargo. 

Of course, from time to time, mechanical or electrical malfunctions occur which could, if left unresolved, result in spoiled cargo. However, modern telematics solutions can be programmed to send real-time alerts to signal deviations from the carriage conditions specified for the particular cargo. This allows technicians to intervene to adjust reefer settings remotely or to fix faults quickly. So, whether it is a temperature spike (for example caused by a door being opened or ‘hot loading’ of cargo, both important considerations when establishing liability for spoiled cargo), or a change in humidity, stakeholders receive immediate notifications to enable corrective action.

Optimising reefer operations

Clearly, reefer container monitoring solutions can help address spoilage in transit. However, they can address several other perennial food system challenges, including traceability, transparency, load integrity, efficiency, and sustainability. Traceability and transparency are vital for verifying the provenance and integrity of foodstuffs and building trusted partnerships. They are also increasingly important to satisfy regulatory requirements and consumer expectations concerning supply chain visibility.

Furthermore, the ability to remotely monitor and control performance parameters provides a level of quality assurance that can drive cold chain evolution. For example, a coalition of shipping lines and logistics specialists have launched a campaign called ‘The Move to -15?’, to explore the feasibility of transporting and storing frozen food at -15? rather than -18?. And data will be a key determinant in measuring whether this can be achieved without compromising food safety or quality. As 52% of the 139 million tonnes of perishables transported by sea in 2022 were frozen commodities, the potential benefits are huge. According to an article published by Cool Logistics, if the initiative succeeds in updating a standard that has existed since 1930, it could save 17.7 million metric tonnes of carbon dioxide (CO2) per year and cut costs in the supply chain by at least 5%. Reefer telematics solutions can provide the remote oversight required to implement and monitor the feasibility study and precisely manage cargo conditions moving forward.

Reefer telematics solutions transmit location and performance data via cellular networks or satellite communications to shipping lines, BCOs and others across the cold chain. Coverage can be scaled from a single container to multimodal fleets and the resulting data can be seamlessly exchanged, using API standards, to optimise end-to-end visibility and control. From the moment a reefer leaves a farm, packing or processing centre, stakeholders can track its location and monitor critical performance parameters. Automated alerts send a signal if the container is mishandled, deviates from a geofenced route or makes an unscheduled stop, and this digital chain of custody record is crucial in the event of an insurance claim. 

The wider impact of food wastage

UNSDG 12.3 recognises food wastage leads to more than just food scarcity. The desire for more farmland drives deforestation in various parts of the world, even though 28% of existing arable land produces food that is not consumed—and, per the World Food Programme, wastes enough water to fill Lake Geneva three times. By reducing loss in the cold chain, reefer telematics solutions can contribute to tackling water scarcity, balancing land usage and promoting sustainability.

Recent data released by the United Nations Environment Programme (UNEP) also found that food wastage generates 8-10% of annual GHG emissions—almost five times that of the aviation industry. In the Global North, most food waste ends up in landfill sites, rather than being composted, contributing to global methane emissions (landfill is responsible for around 11% of emissions per an article published by Reuters). By ensuring food quality at the point of delivery to retailers, reefer telematics can help significantly reduce the amount of produce sent to landfill.  

Meeting broader ESG goals

In addition to enhancing food security, reefer container monitoring solutions can contribute to meeting ESG goals across the global cold chain. Telematics solutions allow stakeholders to calculate CO2 emissions per each leg of the journey. For example; distance travelled, trip duration, fuel consumption in different work modes—idle, optimal, overload—and use of shore and diesel genset power. This simplifies reporting and measuring performance against corporate decarbonisation targets and informs decision-making.

Importantly, the utility of telematics data goes beyond historical trip reporting. Minimising unnecessary refrigeration or setting the reefer to idle when the required atmospheric conditions are met can significantly reduce energy consumption, GHG emissions, and operational costs. Remote performance monitoring can also drastically reduce the number of manual pre-trip inspections (PTIs), saving the energy expended on such tests and reducing haulage emissions from moving reefers around terminals to designated PTI areas.

When paired with analytical tools, real-time telematics data allows shipping lines to assess reefer availability and operational status and position assets at key demand locations within the supply chain. From a sustainability standpoint, this reduces the number (and cost) of unnecessary trips and allows for better coordination and integration of different transport modes, resulting in more efficient transport services and fewer emissions.

We must also do our utmost to protect those working in the cold chain and reefer telematics can replace hitherto manual and hazardous tasks. For example, while at sea, reefers should be inspected at intervals not exceeding six hours. However, such checks are susceptible to human error and expose workers to heights, confined spaces between container stacks, adverse weather and potentially harmful refrigerants. By automating routine checks and control, reefer container solutions enhance crew safety and operational efficiency while replacing repetitive and time-consuming tasks.

The future

Creating more energy-efficient refrigeration technologies will help create a greener cold chain, but it is only one piece of the puzzle. Technologies, like reefer telematics, that enhance in-transit visibility and allow for precise atmosphere management are an obvious win-win for food security and sustainability. 

Reefer telematics improves transparency, safety and traceability within the food system and, when paired with machine learning and Artificial Intelligence (AI), can transform the global food system. Once merely a tool to monitor carriage conditions, telematics solutions now have the power to optimise logistics as part of a digitalised cold chain.

Achieving global food security requires international collaboration and coordination, at all levels of decision-making. Leveraging IoT technology can help build a sustainable and equitable global food system and reefer telematics solutions can play a significant role in this process by reducing waste and improving multimodal cold chain management. Adoption, at scale, can pave the way to a more resilient and efficient cold chain, and a sustainable and more equitable future.

Contact the author:

Christian Allred |SVP & GM for Maritime IoT | ORBCOMM | [email protected]