Global Economy Loses $1 Trillion Annually Due to Food Waste
- foodfightadmin
- June 27, 2023
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In a concerning revelation, it is estimated that a staggering 1.3 billion metric tons of food are lost or wasted annually, resulting in a substantial financial loss of $1 trillion (USD) each year. These figures, however alarming, fail to account for the concealed expenses associated with food production, including labor, storage, salvage costs, and the repercussions of customer dissatisfaction, missed opportunities, and inventory management inaccuracies.
What is even more shocking is that one-third of all food intended for human consumption is squandered due to wastage. This not only has profound financial implications but also carries significant environmental and social repercussions. The commodities bearing the highest levels of waste include:
- Fruits and vegetables (45%) – equivalent to a mind-boggling 3.7 trillion apples.
- Roots and tubers (45%) – equivalent to a staggering 1 billion bags of potatoes.
- Fish and seafood (35%) – equivalent to a staggering 3 billion Atlantic salmon.
- Meat (20%) – equivalent to an astonishing 75 million cows.
The problem of food waste and loss permeates the entire food value chain, from farm to fork. Fresh and frozen food, being sensitive to temperature and climate, is susceptible to spoilage at various stages, including harvesting, manufacturing, packaging, transportation, and storage. Additionally, consumers’ tendency to overbuy also contributes to excessive waste and spoilage.
While various factors contribute to food wastage, approximately 7-15% occurs during transport. The fact that 10,000 shipping containers go missing annually is a concerning contributor to this issue. Furthermore, temperature control and refrigeration problems during transport frequently compromise food integrity, rendering it unfit for consumption. In the United States alone, half of all fresh produce is lost due to suboptimal shipping conditions.
Effective monitoring of the temperature inside refrigerated containers during transport is paramount when shipping perishable goods. Numerous factors, such as fluctuating regional temperatures, container fill levels, and container door openings, can impact the internal temperature. Even at 40 degrees Fahrenheit, food quality can deteriorate, and harmful bacteria can begin to multiply in just one hour.
Recognizing the urgency of addressing this problem, SeaCube, a leading refrigerated equipment lessor, is making strides to mitigate perishable wastage during transport. In collaboration with Carrier, SeaCube is investing in cutting-edge telematics technology. This initiative involves equipping every Carrier reefer in the SeaCube fleet with the Carrier Lynx Fleet Management solution. This innovative solution enhances visibility by providing real-time insights into container location, performance, and interior conditions.
The Carrier Lynx Fleet solution boasts proprietary technology capable of monitoring reefer unit performance, offering early warning diagnostics, and predictive analytics down to the machine’s components. SeaCube’s decision to adopt this system is based on its superior machine performance analysis capabilities compared to other telematics platforms available. Lynx Fleet offers prognostics and data analytics on both Carrier and non-Carrier equipment, with features that include improved fleet uptime, reduced operational costs, and decreased cargo spoilage.
Utilizing telematics technology within the intermodal supply chain promotes collaboration, transparency, and real-time tracking of container location and temperature. Advanced algorithms within the software notify users of significant events along the route and enable predictive analysis for proactive maintenance and repairs.
SeaCube is committed to a forward-looking strategy that leverages technology and telematics to empower its customers to optimize their fleets, increase uptime, and maintain optimal cargo conditions. While some food wastage may be inevitable, SeaCube believes it has a responsibility to employ available technology to minimize waste and ensure the safe delivery of perishable goods. Preserving the integrity of critical cargo not only keeps SeaCube’s customers satisfied but also contributes to environmental protection and food security for the global population.