The Good, the Bad and the Opportunity for Growth: Top 3PL & Cold Storage Providers

It's not a secret -- warehousing costs are on the rise. Higher energy costs, rising real estate costs, stricter food safety regulations (hello FSMA 204 compliance), uptick in demand for refrigerated and frozen foods, ever-changing sustainability measures and all-encompassing supply chain disruptions all play a role in the rise of warehousing costs.

But, what's also on the rise is the demand and need for 3PLs in today's cold food logistics landscape.

In fact, 3PLs accounted for 44 of the Top 100 leases in 2025, up 57% from 28 leases in 2024, according to a CBRE report. The significant increase indicates that large companies are relying on 3PLs to manage their complex logistics. At the same time, the rise of e-commerce is further fueling this trend, as online retailers increasingly rely on 3PLs for logistics support.

Food Logistics talked to a number of past recipients from the Top 3PL & Cold Storage Providers award about what companies are doing to overcome rising costs, what are the disruptions impacting cold chain 3PLs and where the opportunities for growth reside. 

{This is Part 3 of a multi-part series in the State of 3PL & Cold Storage Providers Report. CLICK HERE to read Part 1. CLICK HERE to read Part 2}.

Overcoming rising costs

When traditional facilities are at capacity, the instinct is to find more square footage, but that’s not always the right answer, according to Aidan McCauley, president of Dawsongroup tcs USA.

"Dawsongroup tcs USA enables 3PLs to create capacity where they already operate. Our deployable modules can convert underutilized on-site space, like a parking lot or a loading bay, into high-spec cold storage without the cost or commitment of a long-term lease. This approach puts the product closer to the point of fulfillment, reducing last-mile costs and the associated carbon footprint. In a market where speed and efficiency define competitive advantage, proximity matters," says McCauley.

Another misconception is that rising warehousing costs are primarily due to space shortages, according to Bryan Verbarendse, president, Americas, Americold. 

"In many markets, we are seeing overcapacity as a result of overbuilding during COVID-era demand surges. However, Americold is designed to meet evolving fulfillment expectations by delivering reliable, integrated solutions across every node of the supply chain," Verbarendse says. "From production-attached facilities to port-adjacent locations and retail distribution centers, we work closely with customers to optimize network design and position inventory closer to consumption. This connectivity allows us to support faster turns, more frequent shipments and tighter delivery windows without relying on additional space."

In fact, the best answer to rising warehousing costs is network density.

"With more than 33 facilities positioned strategically across the country, we can offer clients the space they need, where they need it, without forcing them to absorb the cost of suboptimal positioning. Our technology-enabled inventory management system keeps throughput moving efficiently, which means our facilities stay productive and our clients’ freight doesn’t sit. We also leverage retail consolidation, combining shipments headed to the same destination onto a single trailer, which reduces cost per unit and cuts lead times meaningfully compared to waiting on a full dedicated load. In a market where warehousing costs are compressing margins, operational efficiency isn’t a differentiator—it’s the minimum requirement," says Jim Jelinek, president of warehousing, Roadtex, an Echo Global Logistics company.

What's more, demand for refrigerated transportation and cold storage is higher than ever. 

"Trends such as a recent surge in online grocery shopping have accelerated the need for modern, integrated, technology-driven warehousing solutions that ensure products arrive safe, fresh, and on time," says Kyle Johnson, CEO, Leonard’s Express. "The average U.S. refrigerated warehouse is 37 years old, and space is becoming increasingly scarce. To address this challenge and meet the needs of food shippers, Leonard’s Express is investing in the future by building state-of-the-art cold storage facilities and embracing cutting-edge technology."

And, for many 3PLs who do not operate warehouses, meaning they don't store product, just move it, the downstream pressure is real. 

"When cold storage costs rise, every hour of unnecessary dwell becomes a cost someone absorbs," says Matt Heroux, president, Fresh Freight.

When warehousing costs rise and inventory holding becomes more expensive, the pressure on shippers to reduce dwell time and move product faster through the network increases, adds Rick LaGore, CEO, InTek Logistics. 

"That creates a natural opening for intermodal on the right lanes. Intermodal at current pricing is running roughly 12-15% below truckload spot on a cost-per-mile basis. For shippers trying to offset rising storage costs elsewhere in their supply chain, that differential matters," he adds.

Challenges and disruptions impacting cold chain 3PLs

Geopolitical uncertainty, shifting trade policies and transportation volatility continue to create variability in transit times, routing and capacity, says Verbarendse. 

"Even small disruptions can cascade quickly across global and regional cold chain networks. At the same time, consumer behavior is shifting, affecting demand patterns, product mix and inventory velocity. In this environment, success depends on partners that can reduce risk and create predictability even as they help customers evolve and challenge the status quo," he adds.

Other disruptions that stand out as particularly consequential for cold chain 3PLs  are regulatory related.

"The EPA's Technology Transitions Rule is already in effect, and many 3PLs are running legacy refrigeration systems that are becoming operational and financial liabilities. As high-GWP refrigerants are phased out and replacement costs rise, facilities that have not begun planning their transition are falling further behind with each passing quarter," says McCauley. 

Additionally, in California, CARB compliance involves reporting requirements for certain companies under Senate Bills (SB) 253 and 261, with a deadline of Aug. 10. This article by California Air Resources Board (CARB), originally published in 2012, details the ins and outs of what's in store for truckers and fleets across the United States, Canada and Mexico.

Cargo fraud also remains a top challenge for cold chain 3PL, as it reached an all-time high in Q1 2026, according to the Q1 2026 Freight Fraud Index Report released by Highway. The data reveals four dominant fraud vectors in Q1: direct theft by rogue carriers, compromised inboxes, change of-ownership schemes, and an accelerating wave of social engineering attacks. What's more, some of the most frequently targeted commodities include meat and seafood.

"Fraud remains the largest threat to 3PLs. Bad actors are finding more and more ways to infiltrate broker networks through aid of technology. Once trusted procurement tools like DAT have become breeding grounds for theft rings making brokers either adjust how they are booking shipments or investing in expensive software to detect fraud. In addition to fraud the industry is seeing an explosion of AI tools," says Michael Cherney, CEO, Cooler Logistics. "Like other industries, we need to be cognizant of over dependency on AI not only because of the rate of error but because dependency on AI for entry-level work may thin the pipeline of candidates ready to move into more strategic roles."

Rising fuel prices are also disrupting the industry, as diesel is one of the biggest expenses for any trucking company. 

"When gas prices go up, it creates a ripple effect across the rest of the economy. With higher prices, consumers are buying fewer goods which leads to less demand for 3PLs and freight haulers like us," says Johnson. "Energy costs also create disruption to our business and the industry as a whole. Our electricity costs for the temperature-controlled warehouse are up 30% or more in the past 2 years."

Policy uncertainty, tariff-driven equipment cost inflation and climate volatility are also becoming real-world problems for produce logistics specifically, says Heroux.

"Taken together, these pressures are raising the bar for what it means to operate as a reliable cold chain 3PL. The brokers that survive them will be the ones who built their operations around compliance, relationships, and accountability before the disruption hit," he adds.

One of the most overlooked risks in cold chain 3PL operations is yard congestion. 

"When inbound trailers stack up or outbound loads are not staged on time, the yard can quickly become a bottleneck. These disruptions are often driven by late arrivals, extended dock turns, production variability, and inconsistent labor availability," says Erin Mitchell, COO of YMX Logistics. Because the yard directly impacts OTIF performance, detention, and overall cost variability, even small delays can ripple across the network. In cold chain environments, extended dwell time also introduces product risk if temperature-sensitive freight is not actively managed."

Product integrity also remains a core focus. 

"When disruptions like recalls happen, NFI has the processes in place to support customers. Throughout the suite of solutions, SKU-level visibility and traceability enable quick responses," says Anne-Marie Miller, senior food safety manager, NFI.

Beyond the uncontrollable disruptions (natural disasters, climate-related events and geopolitical risks), there is also a real issue with cybersecurity, says Jim Anderson, division VP, Lily Transportation, since most (if not all) of our systems are built around a certain level of automation. 

"There have been numerous cases over the past couple years where a cyberattack slowed or completely stopped warehouse operations with the affects felt through 3PL and final consumer stock levels," Anderson says.

What’s really changed though is the velocity. 

"A port disruption that once gave logistics teams 48 hours to respond now demands a decision in hours, and in temperature-controlled freight, slow decisions have consequences that a credit memo can’t fix: spoilage, compliance exposure, and the kind of service failures that erode customer trust permanently," says Jelinek. "The 3PLs that manage disruption best aren’t necessarily the largest; they’re the ones with the sharpest real-time intelligence and the carrier relationships to execute pivots quickly."

And, technology fragmentation still remains one of the most operationally costly challenges, says Felipe Capella, co-founder and CEO, Loadsmart. 

"Many food distributors and manufacturers are still running freight operations through a patchwork of legacy TMS tools, manual email tendering, and disconnected scheduling systems, creating blind spots between what was planned and what actually happened at the dock. The gap between where cold chain operators are and where they need to be is significant," Capella says.

For many of today's 3PLs, there are too many disruptions at once. 

"This is the bigger issue," says LaGore. "It is not one disruption. It is multiple, hitting at the same time from different directions. That makes it hard to isolate cause and effect. It also makes it harder to know whether the actions being taken are actually fixing the problem or just reacting to noise."

And, while the Union Pacific-Norfolk Southern merger has the potential to reshape the network, it could impact how 3PLs move product. 

"If approved, routing patterns, interchange points, and service lanes will change. That could impact ramp selection, transit times, and pricing structures," says LaGore. "Shippers using intermodal should be mapping their current lanes against a post-merger network now, not waiting on a ruling from the Surface Transportation Board."

Areas for opportunity and growth in the cold chain 3PL market

For some 3PLs, the growth opportunity requires a willingness to move beyond traditional service models. 

"The most immediate opening is in localized, value-added services," says McCauley. "3PLs that can offer on-site tempering, blast freezing or ultra-low temperature storage down to -80°C closer to the end-user will have a significant competitive advantage. Proximity to the point of need is increasingly what separates good cold chain operators from great ones."

For others, growth is the ability to expand into adjacent sectors like convenience retail or pharmaceuticals, which require temperature-controlled expertise, says Verbarendse.

"Americold’s expansion into convenience retail, including our partnership with On the Run in Australia, demonstrates how proven cold chain capabilities can be extended into new sectors to support evolving customer needs and long‑term growth," he adds.

This expansion into other markets also includes the life sciences market, says Jason Minghini, SVP, supply chain solutions, Kenco. 

"These products require highly controlled, reliable cold chain handling, creating demand for 3PLs with the capabilities to support transportation, storage, and fulfillment at scale," he adds. "At the same time, the rapid growth of weight-loss drugs is also creating downstream impacts for food and beverage companies, influencing demand patterns and product mix. This dynamic presents an opportunity for 3PLs to serve as flexible partners across both sectors, helping customers adapt their supply chains as these market shifts continue to evolve."

The current market shift also enables customers looking for 3PL partners to pivot to shipping options that can provide cost savings and flexibility. 

"Specializing in a niche is where the real opportunity lies in cold chain 3PL, customers are no longer looking for a jack-of-all-trades, they want targeted solutions for their unique shipping needs," adds Cherney.

It's that ability to pivot that separates the generalist brokers from the specialized ones, and today, shippers are looking for partners who understand their commodity and their lanes, adds Heroux.

"Brokers with real density in specific food verticals are better positioned to retain and grow accounts," he adds. "Data is [also] underutilized across the industry. Most 3PLs are sitting on years of load history that never gets turned into intelligence. The firms that use that data to inform pricing, carrier selection, and program design will build an advantage that is hard to replicate."

On the technology side, AI-driven carrier selection and rate procurement are moving from competitive differentiator to baseline expectation, says Capella. 

"3PLs that can demonstrate measurable freight cost savings through smarter procurement tooling — not just lower broker margins — will capture business from customers willing to invest in the platform to get the outcome," he adds.

Sustainability also presents an equally compelling opportunity, as the companies that 3PLs serve are under mounting pressure to meet decarbonization targets, says McCauley.

"3PLs that can demonstrate a measurable reduction in carbon footprint will become preferred partners," he adds.

And, for many cold chain 3PLs, strong opportunities lie in simply building deeper, strategic partnerships with customers.

"E-commerce fulfillment continues to be a meaningful growth driver, especially as expectations around speed and precision increase. There is also increasing demand for more specialized and customized order fulfillment solutions, which is creating new opportunities for flexible, service-oriented operators," says Nick Mandich, partner, Cold-Link Logistics.

At the end of the day though, end-to-end cold chain solutions are becoming more attractive as shippers increasingly want fewer partners. 

"We have found that demand is growing for storage, transportation, and last-mile delivery all from one provider," says Johnson. "Sustainability and energy optimization [are]s growing, with customers looking to reduce their carbon footprint as well as their costs."

Logistics should be viewed as a margin enabler, not just a cost center, says Luis Rodriguez, SVP, operations for Source Logistics. 

"When executed correctly, it drives better in-stock performance, fewer compliance penalties, and higher customer satisfaction, all of which contribute to top-line growth," he says. "Finally, the most stable long-term strategy is partnering with a 3PL that evaluates total cost holistically. Rather than chasing the lowest storage rate, Source builds models that account for all cost drivers, including accessorials, labor efficiency, compliance, and potential delays, so there are no surprises down the line. This approach allows customers to scale predictably, even in a constrained environment."

{This is Part 3 of a multi-part series in the State of 3PL & Cold Storage Providers Report. CLICK HERE to read Part 1. CLICK HERE to read Part 2}.