Cold Chain Federation Chief Executive Shane Brennan looks at how temperature-controlled storage and distribution businesses can be preparing for the coming months and the ‘new normal’.

Cold Chain Federation Chief Executive Shane Brennan.

What can we expect leaving lockdown to look like?

The Prime Minister has now set out his strategy for taking England out of lockdown, with several phases of de-restrictions over a number of months. Businesses working across borders between England, Wales, Scotland and Northern Ireland need to be alert to the divergence of rules from different governments.

Until there is a proven vaccine or treatment for Covid-19 widely available, the ‘new normal’ will certainly be different from pre-March. We should certainly expect a fairly long-term obligation to maintain social distancing protocols outside of our homes and in the workplace, and to co-operate with the Government’s ‘test, track and trace’ processes.

What will the changes mean for cold chain businesses?

As different sectors of the economy start to open again, we can expect demand for chilled and frozen food to pick up too. However pubs, restaurants, mass gatherings and international leisure travel are expected to be among the last sectors back in operation. Seeking out new sources for orders to replenish diminished demand from these sectors will be vital for many cold chain businesses.

The process of coming out of hibernation will be a challenging time for any business, and some may close permanently. With a heightened risk of bad debt in supply chains, now is the time to check the terms of your trade credit insurance and your business interruption insurance.

The Cold Chain Federation will continue to provide regular updates, advice and support to our members as well as lobbying Government on their behalf.

What can we expect from the rest of 2020?

With Government set to launch its Covid tracker app soon, businesses will need to ensure employees can run the app effectively in their workplace, and they will need to manage absences when staff are required to self-isolate.

Signs of a second wave could lead Government to implement another lockdown. In March, the cold chain did an exceptional job of responding to consumer desire to stock up and we should be prepared to meet this need again. We should also anticipate another dramatic reduction in orders if entire sectors are closed down again.

Demand for home deliveries will continue to far exceed capacity. Businesses that can adapt their operations to meet this need should consider whether this may help them partly off-set losses in other areas.

What should we expect to see in terms of Government support over the coming months?

Government support for businesses is on an extraordinary scale, from deferral of VAT payments and the Business Interruption Loan schemes, to the recently announced backstop for trade credit.

None of this can continue indefinitely. From August we expect the furlough scheme to start decreasing, with employers needing to contribute towards the 80% payment. However, we do expect that employees will be able to start working part time within furlough.

How can social distancing be incorporated into cold chain workplaces?

Cold storage and distribution businesses must adapt operations for a long period of social distancing in the workplace, complete a risk assessment and provide information for employees.

Some of the measures we suggest for building social distancing into operations efficiently but effectively include:

•Providing separate washroom facilities for drivers

•Ensuring drivers are not requiredto get out of their cabs

•Minimising the physical exchange of paperwork

•No non-essential travel between sites and no visitors on site

•Staggering shift start and finish times to avoid people congregating in rest areas

•Regular reminders to employees about self-isolating, social distancing and hand washing.

Government released detailed guidance for safe workplaces in May, including advice specifically for warehouses and vehicles.

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