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Sumitomo Corporation and OOCL Forge New Frontiers in Freshness-Preserving Logistics

Sumitomo Corporation and Orient Overseas Container Line Limited (OOCL) have inked a strategic business alliance agreement aimed at revolutionizing the transportation of perishable products through refrigerated ocean transport utilizing electric field technology. This innovative approach not only addresses the challenges of preserving freshness during international transportation but also seeks to establish a new standard for freshness-preserving logistics.

Key Developments:

  1. Electric Field Containers: Leveraging the development of electric field containers by MARS Company, Inc., in which Sumitomo Corporation holds an 8.53% investment, a robust electric field container procurement system has been established. This system, in collaboration with Daiichi Institution Industry Co.,Ltd., enables the utilization of refrigerated storage technology with minimal quality loss.

  2. Patented Technology: Sumitomo Corporation has obtained patents, including a "food transportation method" patent that enhances freshness retention by shrink packing food products with a high degree of vacuum in an electric field environment. This proprietary technology is poised to redefine the preservation of perishable products during transportation.

  3. Commercial Operations: Following a successful 30-month demonstration experiment with Itoham Yonekyu Holdings, Sumitomo Corporation and OOCL are set to launch the commercial operation of fresh pork as the first service provider in the meat and logistics industry to transport Spanish pork in refrigerated condition. This signifies a significant leap in the transportation of fresh meat products, which were previously imported as frozen items.

  4. Collaborative Distribution Models: The alliance extends its impact to the broader food industry by collaborating with SC Foods Co.,Ltd, and Mowi Japan Co.,Ltd to realize a new distribution model for a variety of fresh products, including salmon. This collaborative effort is poised to reshape the distribution landscape for fresh food products.

Food Logistics Market Unwinded
Source: Market Unwinded AI

Implications for the Market:

  1. Global Supply Chain Expansion: The alliance between Sumitomo Corporation and OOCL is set to enable ocean transportation of non-freezing chilled products from distant locations, thereby expanding food supply areas and ensuring a stable supply of products. This development is expected to open up new opportunities for global food trade and distribution.

  2. Environmental Impact: The implementation of this service is anticipated to reduce food loss by extending expiration dates, thereby contributing to reduced greenhouse gas emissions and transportation costs by facilitating the shift from air to ocean transportation. This aligns with the global push towards sustainable and environmentally friendly logistics solutions.

  3. Competitive Advantage: Sumitomo Corporation and OOCL are positioned to establish a new standard for freshness-preserving logistics, potentially gaining a competitive edge in the transportation of perishable goods. This could lead to an increased market share and enhanced brand reputation in the logistics and transportation industry.

Investment Insights:

  1. Innovation in Logistics: The development of electric field containers and patented technology presents an opportunity for investment in companies involved in the manufacturing and supply of advanced transportation and storage solutions for perishable products.

  2. Sustainable Logistics Solutions: Investors should monitor companies that are pioneering sustainable and low-carbon transportation methods, as the market shifts towards environmentally friendly logistics networks.

  3. Food Industry Disruption: The collaborative distribution models being realized through this alliance present investment prospects in companies specializing in the distribution and transportation of fresh food products, particularly those embracing innovative preservation and transportation technologies.

As Sumitomo Corporation and OOCL embark on this transformative journey, they are not just redefining the transportation of perishable products; they are laying the groundwork for a new era of freshness-preserving logistics that promises to reshape global supply chains and logistics networks.

Stay tuned with Market Unwinded for more insights into the evolving landscape of global logistics and transportation.


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