18 DC VELOCITY JULY 2019 www.dcvelocity.com
newsworthy
CBRE: Online grocery boom
sparks cold-storage land rush
Demand for cold-storage warehouses throughout the
U.S. is poised to expand dramatically in response
to the growth of online grocery sales, a report from
real-estate services and investment firm CBRE Group
Inc. said. That trend could drive demand for up to
100 million square feet of cold-storage space over the
next five years, a sharp spike for a sector that currently occupies only an estimated 214 million square
feet of industrial space, according to the report, 2019
U.S. Food on Demand Series: Cold Storage Logistics
Unpacked.
CBRE’s forecast is based on a projection by the Food
Marketing Institute and Nielsen that groceries ordered
online will account for 13 percent of total grocery sales
by 2022, up from just 3 percent in 2018. This would
amount to an additional $100 billion in annual grocery sales conducted online, CBRE said.
Much of the cold-storage sector’s growth is likely
to occur in gateway markets like Los Angeles and
the New York area as well as leading food-produc-tion states, such as California, Washington, Florida,
Texas, and Wisconsin, CBRE said. According to the
report, the challenges of constructing and modernizing cold-storage facilities to keep up with the rapid
growth of online grocery sales have already driven
consolidation in the industry, as four companies control 73. 4 percent of the refrigerated warehouse space
in North America.
Expediter Services, a provider of capacity solutions and
ownership opportunities within the trucking industry,
has launched a rebranding initiative. As part of that
effort, the company, which will now operate under the
name ES, has launched a new website, essuccessintruck-
ing.com, that provides information on its capabilities in
the expedited sector and general trucking. … Shipping
line Seaboard Marine has launched new services con-
necting Georgia’s Port of Savannah to its Latin American
and Caribbean network. Beginning in June 2019, the
carrier will offer weekly services for both northbound
and southbound cargoes between the Port of Savannah
and South America, South Central America, and the
Caribbean Basin. … Descartes, a provider of software-
as-a-service solutions for logistics-intensive businesses,
has acquired Core Transport Technologies, an electronic
transportation network that provides global air carriers
and ground handlers with shipment scanning and track-
ing solutions. … Transportation and logistics services
provider Dupré Logistics has expanded its shop and
services in Pecos, Texas. The maintenance facility will
service and maintain the Dupré fleet and will also be
open to other Class 8 providers in the region. … Dachser
Air & Sea Logistics has launched operations in Sweden
with the opening of a new office for air and sea freight
in Gothenburg. … TrueCommerce, a global provider of
trading partner connectivity, integration, and unified
commerce solutions, has acquired ecUtopia, a cloud-
based supply chain collaboration and visibility platform.
The addition will allow TrueCommerce to strengthen its
commerce network in the home furnishings and apparel
industries.
short takes
Kroger, Walgreens sign on with
“Loop” reusable packaging program
Waste management company TerraCycle has expanded its
“Loop” reusable packaging initiative into the U.S. and will
support home delivery of a variety of common products
through agreements with retail giants The Kroger Co. and
Walgreens.
The Loop program seeks to reduce the waste caused
by single-use plastics by applying the
old-fashioned “
milkman model,” according
to Trenton, N.J.-based
TerraCycle. In the 21st
century version of
the model, consumers
place online orders for
products like shampoo,
laundry detergent, toothpaste, orange juice, and breakfast cereal that come specially packaged in reusable glass
or metal containers. The orders are delivered by parcel
carriers like UPS in a specially designed reusable shipping
tote. After use, the empties are collected from consumers’
homes to be cleaned, refilled, and re-used, thus creating a
circular shopping system, the firm says.
Loop said it has launched a pilot program in New York,
New Jersey, Pennsylvania, Maryland, and Washington,
D.C. Consumers can access the service by shopping online
at www.thekrogerco.com/loop, www.walgreens.com/
loop, or www.loopstore.com.
