Cold Chain Federation Warns of Climate-Related Disruption

The recent heatwave over Europe and the UK has seen records broken, with extreme temperatures seeing not just individuals suffer, but also vital infrastructure feeling the pressure.

Rising temperatures and more extreme weather conditions mean that climate change is now at the forefront of supply chain leaders’ minds, as future-proofing the resilience of supply chains is becoming an increasing priority.

Whether it’s low water levels forcing vessels to reduce cargo loads, cooling water becoming too warm in nuclear plants leading to shutdowns or refrigerated transport, warehousing, energy costs of cooling taking a hit, a likely recurrence of extreme heat means many need to act fast to prevent future supply chain disruption.

Resilience at risk

The challenge of more frequent extreme weather events has been noted by The Cold Chain Federation’s members as an increasing challenge. 

Food and pharmaceutical supply chains are vulnerable, with soaring temperatures putting pressure on refrigeration systems and raising the risk of equipment failures, product spoilage and wastage. As well as existing infrastructure not being able to cope with 40°C, existing risks such as global geopolitical instability, increasing cyber-security threats and higher energy costs, continue to add to the pressure these supply chains are experiencing.

Before goods even reach the chain, food, farming, crops and farmed animals are also feeling the heat. 

“Heat stress is already causing economic losses of £205m (US$270m) annually across wheat, barley, oats, dairy cattle, free range hens, and lambs, according to research included in the Climate Change Committees latest adaptation report,” says Jez Fredenburgh, Senior Analyst – Food and Climate at the Energy and Climate Intelligence Unit (ECIU). 

“In an ‘extreme year’ (from a high climate and business-as-usual agriculture scenario) this could rocket to as much as £2.3bn (US$3bn) in the 2030s. Farmers and consumers cannot afford this pressure.”

Infrastructure not fit for the future

It’s not just farmers feeling the increased pinch under these rising climate pressures. The energy sector has also been hit by the latest heatwave, with the increased use of fans and aircon unit usage to stay cool pushing the grid to breaking point. 

In France last week, the Golfech nuclear power plant was forced to shut down when the river used to cool the plant got too hot. Meanwhile, an electricity substation operated by RTE, France's transmission system operator, reported a major transformer incident caused by extreme heat seeing nearly 70,000 people without power.

The heat hit the European transport networks, with reduced services and cancellations common as the infrastructure struggled to survive the extreme weather conditions. The recent heatwave also led to a freight train outage at Paris Gare de l'Est station. A broken power line was “very strongly suspected” as the cause of the outage, as the overhead power lines experience metal expansion under the heat, which in turn increases the risk of a snag from a passing train.

It is not just freight train transportation that suffered as a result of the sun. The Rhine river, one of Europe’s most important trade arteries, experienced low water levels. This meant that barges carrying diesel had to reduce their loads, choking fuel shipments to parts of western Europe.

‘New normal’ to push prices

It is not just the network that is being pushed, but prices inevitably will also be increased as a consequence of this disruption. The European Central Bank (ECB) has previously warned that heatwaves and drought could push up food inflation by approximately 0.4-0.9%, which it estimates could double over the next 30 years.

With extreme weather conditions likely to continue, our supply chains are likely to continue to be hit. In a special address at London Climate Week, UN Secretary General António Guterres said: “Climate disasters are becoming more frequent, more destructive, and more costly. 

“And the World Meteorological Organization has warned we ain’t seen nothing yet. El Niño is not just knocking on the door. It risks blowing the house down. Turning up the heat. Disrupting food and water systems.”