April 27, 2020

More than 90% capacity in world's biggest storage supplier's UK warehouses due to frozen meats

Lineage Logistics said its stock of meats such as pork and chicken are piling up, reaching full capacity as restaurants and the foodservice industry remained closed due to the COVID-19 imposed lockdown, reported Reuters.

Lineage Logistics president Mike McClendon said its 15 facilities in the United Kingdom have reached more than 90% capacity, adding that the overflowing of frozen and chilled volumes are expected within three to five weeks.

He did not mention what would happen if the facilities reach max capacity. However, the impact will be hard on producers, who may have to cut production or dispose of excess stock.

Capacity at Lineage Logistics warehouses exceeded 90% last year after food stocks piled up ahead of Britain's exit from the European Union. Capacity dropped to normal levels (around 85%) after Boris Johnson was elected Prime Minister, however stocks rose again to over 95% in late February.

McClendon said its UK storage facilities are storing more than usual pork supplies as demand from China has dropped since the beginning of the year.

He said inbound volumes exceed outbound volumes, with the initial weeks of the lockdown seeing additional stocks of pork, chicken.

Lineage Logistics is the biggest global temperature-controlled warehouse operator, with about 48 million cubic metres of space.

-      Reuters