Keeping deliveries fresh without melting margins

The Sun

5 days ago

THE cold chain logistics industry is no longer a niche vertical; it is a backbone of modern supply chains. In Malaysia, the market was valued at RM2.5 billion in 2023, reflecting the country's growing reliance on temperature-controlled logistics. Beyond urban centres, cold chain logistics plays a vital role in transporting temperature-sensitive items, such as food, pharmaceuticals, and vaccines, to rural and hard-to-reach communities, helping bridge infrastructure gaps while preserving product quality. Regionally, the sector is projected to reach US$15.23 billion by 2030, fueled by surging demand from the food, pharma-ceutical, and retail industries across Asean.
But as more chilled and frozen goods move across the country, so does the environmental burden. Transportation already accounts for 28.8% of Malaysia's fossil fuel-related carbon emissions, a share that exceeds the global average.
How do we keep things cold, without heating up the planet?
Cost of cold chain logistics
Cold chain logistics is indispensable for many sectors, from delivering fresh seafood to life-saving vaccines, but it is also one of the most energy-intensive parts of the supply chain. Maintaining strict temperature control during transport relies heavily on diesel-powered refrigerated trucks, dry ice, and insulation materials that are difficult to recycle or reuse.
Fuel consumption is a major cost driver and environmental burden. Refrigerated vehicles consume more fuel than regular trucks, and the refrigeration units themselves often run on diesel engines, contributing significantly to air pollution and greenhouse gas emissions. Furthermore, traditional cold chain logistics tend to operate on point-to-point trips, requiring more vehicles on the road and higher emissions compared to hub-and-spoke distribution models.
Dry ice, widely used as a cooling agent in food and pharmaceutical deliveries, is essentially frozen carbon dioxide that sublimates and releases greenhouse gases. It also demands additional insulation materials, which are non-biodegradable and usually end up in landfills or waterways. In 2021, the Malaysian Civil Aviation Authority has issued specific guidelines for the transportation of vaccines using dry ice, underscoring the potential hazards of CO₂ buildup in enclosed environments like aircraft cabins. This highlights not only the operational complexities but also the environmental and safety risks associated with conventional cold chain practices.
Packaging practices often follow a 'more is better' approach to ensure product integrity, leading to excessive use of polystyrene (styrofoam) and gel packs. This not only drives up costs but also contributes to environmental waste. In fact, packaging accounts for more than 40% of overall plastic consumption and comprises over 55% of total global plastic waste. Yet less than 15% of this plastic packaging is collected for recycling, with huge amounts leaking into the environment, posing a long-term challenge for sustainability in logistics.
Addressing these issues requires rethinking cold chain logistics through the dual lenses of operational cost and environmental impact.
Optimise what already exists
Instead of building entirely new infrastructure, a more sustainable and accessible approach is to optimise what already exists. This approach reduces the need for additional vehicles on the road and makes better use of current resources.
For example, by using specially designed insulated boxes, cold-chain items can be delivered alongside e-commerce parcels during last-mile delivery without compromising temperature control. This approach to multi-temperature reduces the need for separate trips, lowers fuel consumption, and enhances overall operational efficiency while helping to cut carbon emissions.
Another promising development is the use of reusable insulated packaging that can maintain required temperatures for extended periods, sometimes up to 24 hours, without relying on disposable materials like styrofoam.
Advances in technology further support these efforts. Data-driven route planning and load optimisation can reduce travel distances and idle times, helping to protect product integrity while cutting emissions. These tech-enabled efficiencies are especially important in fast-paced, high-volume logistics networks.
Collaboration and innovation
Addressing the challenges of cold chain logistics requires more than individual effort. It calls for collaboration across the entire supply chain, from logistics providers and manufacturers to retailers and regulators. By sharing best practices, investing in sustainable technologies, and adopting data-driven approaches, the industry can accelerate the shift towards greener, more efficient cold chain solutions.
As stakeholders, we all have a role to play in rethinking how cold deliveries are made. Together, we can build a cold chain ecosystem that not only meets growing demand but does so in a way that protects both the environment and business viability.
This article is contributed by Ninja Van Malaysia, Ninja Cold deputy head Zhen Wei Yeow (pic).