Cold chain under pressure: Navigating tariffs, trade, and tech

KUALA LUMPUR, 22 JULY 2026 —

Global trade in temperature-controlled goods is under strain from tariffs, conflicts and regulatory overload, the Global Cold Chain Alliance (GCCA) said, warning of higher freight bills and shipment delays that will ripple through food supply chains.

The Washington-based industry group said disruptions in the Middle East and new U.S. tariff actions have tightened reefer-container availability, driven up costs and forced rerouting of container ships, adding weeks to voyages from Asia to Europe and North America. Container imbalance has deepened shortages of refrigerated equipment at key export hubs such as Los Angeles and Rotterdam, it said.

“The first priority is safe and secure trade of temperature-controlled goods,” said Shane Brennan, the GCCA’s senior vice president for global policy, projects and partnerships. “That covers everything from conflicts in the Middle East to national trade policy, compliance, product safety and facility inspections.”

GCCA is working with governments and supply-chain stakeholders to keep cargo moving and equipment flowing as the situation evolves. In recent weeks the group has briefed U.S. congressional staff on draft tariff proposals, met with European Commission officials on Sanitary and Phytosanitary (SPS) reforms, and coordinated with the U.S. Department of Agriculture on digitising food-safety inspections.

Trade policy uncertainty has pushed freight rates for refrigerated containers to multi-year highs, with Asia-Europe reefer rates up 40% year-on-year in April, according to London-based Drewry Shipping Consultants. Container ships carrying perishables are taking longer routes to avoid conflict zones, creating additional demand for reefer slots and pushing lease rates for containers past US$1,200 a week, Drewry data show.

The Middle East conflict has already triggered multiple short- and medium-term disruptions, GCCA said. In March, Houthi attacks in the Red Sea diverted 30% of Suez-bound container traffic to the Cape of Good Hope, lengthening voyages by 10–14 days and increasing fuel burn for refrigerated boxes. Spot freight rates for temperature-controlled cargo from Shanghai to Rotterdam rose to US$6,800 per container in April, up from US$3,400 in January, according to Xeneta data.

U.S. policy adds another layer of risk. GCCA’s Adam Thocher, senior vice president for global market engagement, said the February U.S. Supreme Court ruling on presidential tariff authority introduced “a new period of legal and commercial uncertainty.” The ruling upheld the administration’s right to impose Section 301 tariffs without congressional approval, raising the prospect of further retaliatory measures by trading partners.

“Over the past 18 months, global food trade has seen increased volatility, delays and cost inflation,” Thocher said. “We are joining forces with U.S. agriculture to fight for low and zero tariffs on goods where American consumers are already feeling price pressures.” GCCA expects tariff actions to accelerate ahead of the July 1 interim review of the U.S.-Mexico-Canada Trade Agreement (USMCA), which governs more than US$148 billion in annual agricultural trade.

Lindsay Shelton-Gross, GCCA’s senior vice president for global communications, said the interim USMCA review is a chance to modernise Sanitary and Phytosanitary systems. “Integrated North American supply chains depend on predictable, resilient cross-border movement,” she said. “A robust trade agreement is fundamental to enabling the safe, secure and efficient movement of perishable food.”

Beyond tariffs and trade routes, GCCA is pushing for infrastructure and regulatory reforms that can cut costs for cold-chain operators. The group secured bipartisan language in the draft 2026 U.S. Farm Bill that would provide US$1.5 million to expand cold-chain capacity in export markets under the Foreign Reinvestment in Domestic Growth and Efficiency (FRIDGE) Act.

GCCA said the funding will target ports and inland terminals in Southeast Asia and Latin America that lack modern cold storage.

On the regulatory front, GCCA is advocating a practical approach to the FDA’s Food Traceability Rule (FSMA 204), which requires detailed record-keeping for produce, dairy and seafood on the Food Traceability List. The rule’s compliance date was pushed back to July 2028, giving operators more time to digitise records and train staff.

“Digitised systems deliver practical reforms that help remove friction from global trade,” Brennan said. “The need for efficiency and resilience is opening the door to positive change, even if progress is slow and complex.”

GCCA said its members are now prioritising three areas: securing predictable tariff treatment for perishables, accelerating SPS digitalisation, and expanding cold-chain infrastructure in emerging export markets. The group will host a policy summit in Washington next month to brief lawmakers and regulators on the findings.

For Malaysian business readers, the rising cost and fragility of global cold-chain routes could tighten supplies and lift prices of imported seafood and dairy, even as exporters seek new hubs in the region.

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