3PL / COLD CHAIN
BY BRIELLE JAEKEL, ASSOCIATE EDITOR
CANNABIS TRANSPORTATION HAS SURPRISING REQUIREMENTS FOR 3PLS
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he legalization of marijuana spreads throughout many states in the United States, CBD grows as a trend in wellness and hemp offers a pathway to sustainability, another growing trend. The cannabis plant is certainly an important part of the U.S. economy today, which greatly impacts the logistics industry. In 2020, cannabis sales increased 48% in just one year, reaching $21.3 billion worldwide, according to BDSA. The organization predicts an increase to $55.9 billion by 2026, a compound annual growth rate (CAGR) of more than 17%. Third-party logistics (3PL) companies are often tapped for shipping cannabis-related goods because of this popularity influx. There are several intricacies in this area that makes a keen eye and significant know-how necessary for 3PLs that participate in cannabis transportation. For one thing, transporting cannabis across state lines is still illegal given the federal government’s stance on the legalization of marijuana. And, while the transportation of compliant hemp is allowed per the Farm Bill of 2018, there are a variety of different regulations across state lines that transporters need to pay attention to. “Some 3PLs with no cannabis or hemp experience are attempting to jump into the industry and ship hemp to bring in more revenue for their companies without understanding the proper laws and regulations at the various state levels,” says Kevin Schultz, co-founder and president of The 357 Company and 357 Hemp Logistics. “This is resulting in confiscations of product, loss of investments for shippers and breakdowns in momentum within the hemp supply chain.”
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FOOD LOGISTICS | MAY 2021
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