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PHARMACEUTICAL LOGISTICS |
Pharmaceutical Transportation
How to Increase Air Cargo's Market Share
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According to IATA, the global pharmaceuticals logistics market is valued at $64 billion and is the most “specialized”, regulated, expensive and fragile cargo market in the world today. The handling of temperature-controlled pharmaceutical products is a very complex business given the ever-increasing level of regulation globally. The approval in September 2013, of the European (EU) Good Distribution Practice increased the complexity of pharmaceutical transportation , forcing the industry to adapt their cool chain handling . Additionally, freight forwarders have to cope with multiple audits imposed by pharmaceutical companies and regulators.
On the bright side, in an industry planning for “high value” trade growth, Pharma is the third largest product group to contribute to global trade in value. Trade of Pharma topped growth rates with 11% average increases over the last 13 years. Currently, the USA and Europe are the main origins of Pharma in air trade. However, Indian exports have achieved high growth rates in the last two decades. A stunning 43% of Pharma by air consists of products above $150 per kg in value, e.g. vaccines and hormones; lower value Pharma with values of less than $15 per kg move by ocean.
To succeed, all partners in the temperature control supply chain must become increasingly inter-dependent when building effective cold chain solutions. The focus is on building relationships between manufacturers, forwarders and carriers; ground handling agents, airports, packaging manufacturers, technology developers and regulators. They must create SOP’s(Standard Operating Procedures) together and support detailed understanding of processes and agreement of roles and responsibilities for each participant.
While airlines like Cargolux are deriving 12-15% of their annual revenues from PHARMA/TEM cargo, healthcare represents 5-7% of total tonnage for handlers like LUXAIR CARGO. This has spurred container manufacturers like ENVIROTAINER to design multi-use containers so that products stay within their specified temperature ranges, while asset tracking companies like ON ASSET INTELLIGENCE continue to develop better systems to promote operational efficiency, accurate real time information, automation, asset tracking, compliance of sustainability.
It seems like a contradiction, that though air freight is 78% more expensive that ocean freight, it leads the pack with 80% of all temperature excursions for Pharma transportation. In comparison, ocean transportation has a mere 1% temperature excursion rate, while road transport is a little higher with 18% of all the excursions. There is still a lot of work to be done for the air cargo supply chain to come up to speed for the growing global trade in Pharma products. On this page, we at AIRCARGOPEDIA, hope to gradually gather all the experts and specialized vendors on one “landing page” to provide the world with a zone of expertise on Pharma transportation.
 AIRLINE PHARMA PRODUCTS
AIRPORTS SPECIALIZING IN PHARMA
ASSOCIATIONS WITH PHARMA KNOWLEDGE & EXPERTISE
SPECIALIZED MANUFACTURERS OF ULD’S & CONTAINERS FOR TRANSPORTING PHARMA
TEMPERATURE CONTROLLED TRUCKING SERVICES
AIRBORNE ASSET & TEMPERATURE TRACKING
PHARMA CERTIFICATION & VALIDATION /TRAINING IN PHARMACEUTICAL LOGISTICS & HANDLING
PHARMA EVENTS
PHARMA LOGISTICS
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