The rise of direct-to-consumer and e-commerce shipping isn't showing any sign of slowing down as the market continues to grow. Grip, a logistics tech and fulfillment leader for e-commerce companies that ship perishable goods, has announced the opening of its fifth fulfillment center in Michigan. This expansion positions Grip to service 70% of the U.S. population within 24 hours.

Juan Meisel, CEO and co-founder of Grip, said in a news release, "Expanding to Michigan is a significant milestone for Grip as we continue to support DTC brands with unmatched speed, cost savings, reliability and technology. Our goal is to empower brands to scale with confidence, knowing their operations and logistics are optimized at every step."

The perishable goods transportation market size is forecast to increase by $9.23 billion, at a compound annual growth rate of 8.8% between 2023 and 2028. Perishable e-commerce has a larger emphasis on reliability and efficiency than traditional e-commerce models as temperature-sensitive goods can't be easily replaced if something happens, and the risk of damaged or unusable goods is higher.

Southern hospitality at its finest invites you to come in and have a bite. Nestle USA is taking that sentiment literally, announcing plans to invest $150 million to increase production at its food processing plant in Gaffney, South Carolina. Food processing doesn't always involve the cold chain, especially when talking about one of the largest consumer packaged goods shippers in the U.S.

This investment is primarily targeted to increase production of single-serve frozen meals in the form of a new production line. The company is also looking to enhance some automation and technology. Reaping the rewards of this enhanced facility are fan favorites of the frozen food aisle with Stouffer's, Lean Cuisine, Vital Pursuit, Sweet Earth bowls, and Hot Pockets sandwiches, as well as DiGiorno, Jack's and Tombstone pizza.

Nicole Caldwell, manager of the Gaffney factory, said in a news release, "This investment further solidifies our dedication to the Gaffney community, where Nestlé has been an integral part for nearly 45 years. It also reflects our continued commitment to enhance our US manufacturing footprint and in-house capabilities."

This week's market under a microscope is Raleigh, North Carolina. Raleigh's reefer market is facing a mild capacity crunch as outbound reefer rejections are on the rise. Reefer rejections are technically down week over week but made a strong recovery compared to the sharp drop earlier this week. As one of the largest food holidays of the year approaches, rejection rates aren't likely to change trajectory anytime soon.

Carriers will prioritize higher-paying lanes and shippers face tighter capacity, especially in regions with strong seasonal demand. Rejection rates are expected to creep up as late-year demand strengthens. Shippers should secure capacity to mitigate risks.

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