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How does the conflict between Russia and Ukraine and inflation affect increased prices in isothermal transport (and distribution generally)? It is a tricky issue that affects all of us a great deal. We can’t give a detailed answer to this question but we can give a basic explanation.

War, inflation, prices and isothermal transport: there are solutions

War, inflation, prices solutions

How does the conflict between Russia and Ukraine and inflation affect increased prices in isothermal transport (and distribution generally)? It is a tricky issue that affects all of us a great deal. We can’t give a detailed answer to this question but we can give a basic explanation.

Can we reduce the negative economic impact it is having on our businesses? For this question, we can provide solutions that could ease the problem, at least when it comes to temperature-controlled product distribution and isothermal packaging – our speciality.

Price hike: obscure reasons, clear effects

Experts can’t even agree on the cause of this undeniable reality: this year’s inflationary boom. The first “culprit” would be the somewhat aggressive tax and finance policies put in place to combat the effects of the Covid-19 pandemic.

Supply chain complications, in the broad sense, have also been identified as being a cause (albeit secondary). It is indeed a classic case of there being an imbalance between offer and demand, hindered by technical issues likely related to lean manufacturing.

And what about the war? Well, it does make things a great deal worse. Wars are expensive and we all pay. On one hand, they use a lot of resources, and on the other, there are cuts in strategic sectors like food and energy. Two elements that affect prices.

And when we say energy, we mean fuel. And when we say fuel, we mean transport, and so on. Logistics companies are experiencing sharp rises in costs (from which only bike delivery can escape) which are partly passed onto their customers and in turn, the end consumer.

Efficiency-based solutions

As a leading company in isothermal transport solutions, we can confirm that, at least in the area of isothermal transport, you can ease the impact by choosing temperature-controlled packaging that has an excellent price-quality ratio. In our case, this competitive advantage is based on three factors:

  • Efficient material, given their cost and lightness. With products like CarryTemp, we offer reusable polyurethane packaging with up to 48 hours hold time, based on phase-change material (PCM) coolants.
  • Flexible modular solutions with Transforming Vehicles. We put the spotlight on urban mobility that is more cost-efficient than roto-moulded containers and traditional actively cooled vehicles.
  • Flat-packed delivery which helps reduce transport costs (and saves storage space without wasting time on assembly). This is the case with Lipbox (our flagship single-use box), Greenin SU and Greenin RU (for single-use or reusable) and PET Thermpack (with the added value of recycled PET).

In the current context, any solution that improves prices without scrimping on quality is a strong comparative advantage and can be the difference between a business project succeeding or failing in the following sectors: food, retail, online perishable goods, temperature-sensitive medicine and other heat-sensitive products.

 

Choose quality without hiking up the price

Times of economic crises hide opportunities for those who know what they are looking for and how to grasp hold of them; contact us to find out how we can help you!