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Cold Chain Logistics is Attracting Investor Interest

Cold Chain Logistics is Attracting Investor Interest

Cold chain logistics is attracting investor interest as a real estate asset class, given its increasing demand across industries.   Although cold chain is a specialized kind of asset, it is part of the broad range of facilities within the office and industrial facility sector.

 

Cold chain logistics companies handle temperature-controlled and temperature-sensitives goods.  The logistics include all or part of the supply chain, including procurement, storage, transport, and distribution.   Refrigerated goods handled in the cold chain logistics industry include foods, beverages, and bio-pharmaceutical products (life sciences), among other items.

 

The increased investor interest in cold chain is interesting since many of the large operators and portfolios are somewhat historic having gotten their starts in the early 1900’s.   United States Cold Storage got its start in 1899, for example.   And Americold Realty Trust (Atlanta) traces its origin story back to 1903.

 

Now, newly-established global real estate conglomerates such as Constellation Cold Logistics S/A and Qualianz, each established in 2020, are bringing asset management and best-practices techniques from other industries.   And we’re seeing the acquisition and consolidation transactions to achieve operating footprints than can better support client supply chain issues, such as Lineage Logistics’s recent acquisition of Henningsen Cold Storage (in May 2020), and Americold Realty Trusts’ acquisition of Agro Merchants Group (The Netherlands)- also in 2020.

 

 

Cold Chain Logistics Facilities

 

 

For More Information

 

More information about the the cold chain logistics industry is available through our ongoing tracking services for clients.   A summary of some of this tracking information is available for review, clicking here ==>

Cold Chain Logistics Companies – the Latest

 

Truck Tonnage Declines in 2020

Truck Tonnage Declines in 2020, Through August

SCP’s The Economic Growth Monitor

 

Truck tonnage declines in 2020 included the fifth consecutive year-over-year decline in the U.S., through August 2020.   Freight transportation is a barometer of U.S. economic health, making monthly truck tonnage estimates a key indicator for local economic development officials.

 

Trucking represents an estimated 72.5% of tonnage carried by all modes.  According to American Trucking Associations, in 2019 trucks hauled 11.84 billion tons of freight.  The American Trucking Associations is the largest national trade association for the trucking industry.

 

Transport Topics reports on truck tonnage throughout the year.  Their most recent recap is available here: Tonnage Declines 8.9% Year-Over-Year in August

 

The American Trucking Associations’ press release about truck tonnage declines in 2020 is available here: Index 8.9% below August 2019.   According to the ATA, the apparent softness in truck tonnage was due to softness in the industrial and energy industries where truck loads are heavier, than any softness in consumer-related loads.   Fleets hauling for retailers reported strong freight volumes.  ATA calculates  U.S. tonnage volumes and index based on surveys from its membership and has been doing so since the 1970’s.

Office and Industrial Consultants

Groundleasing Practices – Port of San Diego

Management review of port district leasing practices, including lease administration and lease rate.

 

The Port of San Diego was interested in confirming whether or not its ground lease rates, issues of highest and best use, deal terms, and operating polices were at par with “best practices” at other world port districts, particularly, at U.S. West Coast port facilities. A study was undertaken concerning regional market conditions, competitive conditions at other world ports, “best practices” at such other ports, and other related factors. Recommendations were prepared for consideration by the Port of San Diego, with regard to lease rate-setting and deal terms.

 

The Port of San Diego is a special government entity, created in 1963 by an act of the California legislature in order to manage San Diego Harbor, and administer the public lands along San Diego Bay.

 

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