Cold chain logistics is hotter than ever. Benjamin Gordon, Cambridge Capital and BGSA CEO in Palm Beach, explains why supply chain investment in cold storage and temperature controlled warehousing and logistics has become so important.

In the past year, we have seen a flood of capital pouring into temperature-controlled logistics facilities. Investors and buyers have rushed into the sector, eager to snap up the facilities that support the food supply chain.

Industry leaders Lineage Logistics and Americold, in particular, have been on a tear. Recent deals include

• In Asia and Latin America, the Lineage Logistics acquisition of Emergent Cold from Elliott for $900 million
• In Canada, the Americold acquisition of Nova Cold Logistics from Brookfield for $253 million
• In the United States, the Lineage purchase of Preferred Freezer for over $1 billion

In just 11 years, Lineage has skyrocketed to become the largest company in its field. Today, Lineage and its competitor Americold together control 63% of the market for cold-storage warehousing, according to the International Association of Refrigerated Warehouses.

Why is there such a sudden spike of investor interest in cold chain logistics?