UPS is investing $48 million in 27 temperature-controlled freight cross-dock facilities in key US and international markets, including Europe, Asia and the Americas. They will be optimized for short-term storage between air and ground movements while maintaining specific temperature requirements. They will strengthen the carrier’s global cold-chain network for the 2 to 8 degrees Celsius, 15 to 25 degrees Celsius and frozen segments.
UPS says that demand for temperature-sensitive biologics is projected to expand at over 8% a year and that the market will reach over $39 billion by 2033. It cites research that says that around one in three newly approved drugs are biologics and more than 85% of those require temperature-controlled handling.
All the facilities will comply with IATA CEIV Pharma certification.
UPS adds that temperature and cold-chain failures cost up to $35 billion annually and, contribute to up to 50% of global vaccine waste.
UPS’s cross-dock expansion follows a number of recent acquisitions including Bomi Group, Frigo Trans and BPL in Europe and Andlauer Healthcare Group in North America. More recently, UPS expanded its Incheon, Korea air hub to support pharmaceutical trade flows.
