STiR coffee and tea magazine

28 STiR coffee and tea | 2024 Issue 1 (February / March) P The African Development Bank is funding the East African Community (EAC) Central Corredor, a rail system that will replace the existing network with new lines ... with signaling and telecommunications upgraded. Part 2 explores a transformation in intermodal shipping capabilities that will tap the enormous potential to produce African coffee, tea, and spices. Part 1 of 2 Photo courtesy Williams Coffee Green Sea Shipping The Ane Maersk, the world's largest (16,592 TEU) dual-fuel container ship (above) departed on Feb. 9 on its maiden voyage. Six 17,000 TEU capacity methanol-powered ships will follow and six 9,000 TEU carriers. Maersk announced a goal of net zero emissions by 2040 with cleaner fuels a core pillar of its strategy. At left: Café William Coffee is transported by sail. The first cargo sailboat set sail from the port of Santa Marta in Colombia on Dec. 18, bound for North America. During its 20-day voyage, the cargo sailboat carried 72,000 kilos of coffee beans on the wind, in a constant effort to run on clean energy. andemic-induced disruptions to logistics are now paying a divi- dend for coffee, tea, and spice supply chains. Since 2020 producers, wholesale roast- ers, tea blenders, and retailers have re- aligned their logistics to address consumer expectations with powerful new tools, ac- cording to Digital Coffee Future, an inter- active virtual communication community. "We talk a lot about what happens before coffee is ready to ship and once it gets to its final destination, but we rarely dive deep into what it takes for these two ends to meet," writes DCF, a venture that provides educational programs, hosts events, and offers consulting services. In 2020 producers, roasters, and tea blenders accustomed to predictable and rea- sonably priced transport, and delivery were not focused on supply-chain sustainability, digitalization, and technological innovation. Now they are. Technological advances adopted during the past three years include AI-enhanced logistics, automation in warehousing, and more precise inven- tory control driven in some instances by point-of-sale data in real-time. "Reinventing logistics is possible," writes DCF. "Automated solutions in different stages of the process are cer- tainly contributing to improving moni- toring systems and increasing operational efficiency. Automated loading and un- loading systems in warehouses, solutions for ground transportation - like self-op- erating vehicles and drones -, or the use of blockchain to ensure product tracking, or to collect data for later execution of smart contracts, are a few examples of how digital solutions can make a mean- ingful change in trading and logistics." Economic doldrums continue to weigh on the coffee and tea industry but as de- mand increases the desire for better-quality coffee and healthful tea profits will surge. Here are five supply chain adaptations that will shape the future of transport. • Bureaucratic obstacles to cross-bor- der travel were streamlined across Asia, Africa, and Europe. Non-tariff barriers to trade such as the EU's deforestation and stringent chemical residue will force suppliers to adopt traceability and sus- tainable production. • The $1 trillion Chinese investment in the Belt & Road ports expanded deep- water capabilities globally potentially by- Logistics Realignment By Dan Bolton Photo courtesy Maersk passing the Panama Canal and rerouting coffee shipments to Asia from the Amer- icas and tea shipments from China. • Shipping companies used massive profits accumulated during the pandemic to "green" the oceans by retiring and replacing inefficient vessels to meet exhaust standards. Practices like Voluntary Speed Reduction (VSR) will gain favor and a warming climate will open sea routes to Northern Europe where coffee consumption is high. • Expansion of the global cold supply chain (CSC) an unbroken process that can maintain a permissible sustainable temperature range of perishable products from the point of origin to final con- sumption. • Supply chain tracking and block- chain traceability have evolved, easing pressure on operations but coffee and tea are low-priority cargo for shippers servic- ing Walmart, Costco, Amazon, and the largest grocery chains all of whom utilize expensive custom software. In response, roasters are utilizing software as a service (SaaS) models. "The integration of technology is key to achieving greater efficiency, but not every tool or platform can be a fit for all," writes DCF.

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