Tariffs and Demand Reshape Cold Chain Strategies

Photo: Jim Allen/FreightWaves

Food businesses in North America are shifting their strategies toward resilience and automation to cope with ongoing disruptions from tariffs, regulations, and shifting consumer demand.

That is the conclusion from the latest Cold Chain Insights report published by Lineage - the world's leading temperature-controlled warehousing operator. The survey polled 1,000 supply chain decision-makers across the United States, Canada, and Mexico.

The results reveal that geopolitical uncertainty and policy shifts - particularly tariffs - are the biggest factors dictating supply chain decisions in 2026. Up to 73% of respondents predict tariffs will continue to negatively impact their companies' financials this year.

For the freight market, the findings point to an increase in both demand and complexity in refrigerated trucking and cross-border food logistics, especially along the US-Mexico and US-Canada trade corridors.

According to the Lineage report, as food companies expand their frozen and chilled networks while adjusting sourcing strategies to manage risks and tariffs, this often leads to a surge in temperature-controlled Full Truckload (FTL) volumes. Accompanying this is a tightening of cold storage capacity near border zones and seaports, compelling businesses to rely more heavily on third-party logistics (3PL) providers to ensure data visibility and support regulatory compliance.

"Supply chain leaders are operating in an environment where volatility is the norm, not the exception," noted Greg Lehmkuhl, President and CEO of Lineage, in the report.

Tariff Pressures, Costs, and Demand Reshape Strategies

The survey found that 95% of companies had to adjust their strategic plans over the past year due to the constantly shifting policy landscape. Notably, 57% stated that the impact of tariffs on costs in 2025 exceeded their expectations.

Tariffs and regulations were ranked as the top external risks causing supply chain instability. This was followed by inconsistent partner capacity, climate disruptions, and rising freight and fuel costs.

Concurrently, demand for cold storage remains robust. Approximately 72% of organizations reported rising demand for chilled and frozen foods, evidencing the growing importance of temperature-controlled logistics as consumer shopping behaviors shift.

This data suggests that food companies are aggressively rethinking their sourcing strategies, inventory planning, and distribution networks across North America amid ongoing risks associated with trade policies and operational costs.

The Wave of Investment in AI, Automation, and Data Visibility

Technology adoption is becoming the "heart" of cold chain operations. Up to 60% of survey participants ranked data and Artificial Intelligence (AI) as the top technological drivers transforming operations in 2026.

Businesses are currently focusing on:

● Transportation optimization.

● Real-time visibility.

● AI-driven decision-making.

● Warehouse automation to enhance efficiency and coordination capabilities.

These investments have initially yielded positive signals: 24% of companies reported that the return on investment (ROI) from AI projects exceeded expectations, while the vast majority of others affirmed they are meeting or coming very close to their set targets.

Shippers Demand Flexibility from Cold Storage Operators

The report also highlights that food and beverage (F&B) companies are increasingly relying on 3PL providers and cold storage operators to secure flexibility and data control.

Nearly half of the respondents cited flexible warehousing capacity as their most pressing need from cold storage partners, while 41% affirmed they want better data and analytical tools to support planning decisions.

Many businesses are responding by expanding their supplier networks, improving tracking and visibility capabilities, and reinforcing risk management strategies to boost the resilience of their supply chains.

This survey was published against the backdrop of the cold storage sector still undergoing a self-correction phase following a wave of massive new infrastructure builds and a post-pandemic inventory destocking cycle.

During a Q4 earnings call on February 25, Lineage executives revealed that new cold storage space grew by 14.5% between 2021 and 2025, while actual demand only increased by 5%.

See more:

• US Court Rules in Favor of FMC: Clamping Down on Ocean Carriers' Unreasonable Refusals of Vessel Space
• Ripple Effect: Middle East Crisis Reshapes Global Aviation Logistics and Supply Networks
• Fleet Greening Strategy: Nantong Cosco and Norsepower Strengthen Global Cooperation on Rotor Sail Technology
• COSCO updates Vietnam-Intra Asia sailing schedules in Apr 2026
• Gulf Conflict Update: Iran Opens 'Controlled Corridor' at the Strait of Hormuz, Supply Chains Remain Strained
• Qatar Airways Cargo Gradually Resumes Global Operations
• COSCO schedules: Vietnam - North America in Apr 2026
• SITC updates Vietnam-Intra Asia sailing schedules in Apr 2026
• International Shipping and Logistics Market Update Week 13/2026 | Phaata
• Shipping Line ONE Acquires 30% Stake in Key Laem Chabang Port, Thailand
• CMA CGM Implements Peak Season Surcharges on Mauritius and West Africa Routes
• Hapag-Lloyd Announces General Rate Increase (GRI) on South America Route
• COSCO SHIPPING Resumes Bookings to the Middle East via Multimodal Transport Network
• Strategic Port of Salalah (Oman) Suspends Operations Following UAV Attack
• EUNAVFOR ASPIDES Warning: Threat of Attacks on Commercial Shipping in the Red Sea Shows Signs of Escalation
• Geopolitical 'Undercurrents' and the Restructuring Race Reshaping the Global Shipping Map

Source: Phaata.com (According to Freight Waves)

► Find Better Freight Rates & Logistics Service Providers!