demand. However, long-term
price cutting is not sustainable
and in the face of continued
change, air freight companies
will have no choice but to cut
fl ights from their schedules
and mothball aircraft – and
cease to exercise purchasing
options that did not factor in
declining demand.
Diminished demand,
reduced capacity
Air freight remains the
predominant mode of
transportation for moving
life-saving pharmaceuticals
around the globe, especially
for the most valuable and
sensitive therapies that
require strict temperature
control. Sea transport,
accounting for approximately
20% of pharmaceutical
shipments3, made gains
Packaging options proliferate:
Peli BioThermal’s Credo Cargo
cold chain container is one
in recent years as an alternative transport mode for nontemperature
sensitive products and the return of containers
after payloads have reached their destination. However, for
the foreseeable future, pharmaceutical companies will remain
reliant on air freight for transportation of products that could
succumb to temperature excursions.
Declining air freight and passenger demand combine to
produce a double whammy for the pharmaceutical industry.
As air freight capacity becomes an even more precious and
dwindling resource, there are things that can be done to mitigate
reduced capacity. For example, temperature-controlled packaging
systems will need to step more into the foreground to reduce
volumetric weight, providing higher performing insulation
and phase change materials that can considerably improve
volumetric effi ciency.
However, packaging systems currently available to reduce
volumetric weight are typically more expensive unless they
are re-used, and re-use can’t always be achieved effi ciently for
both fi nancial and environmental reasons. The pharmaceutical
packaging industry will need to look more closely at the installed
capabilities of aircraft to manage temperature, which could
make lower-grade packaging materials more acceptable. The
capabilities of the aircraft will also need to be matched to ground
conditions and reliable sourcing can be diffi cult in less developed
regions of the world.
Packaging choice growing
When it comes to pharmaceutical packaging, one size does not
fi t all — nor should it. The days of choosing between a rickshaw
or a tank are behind us. Pharmaceutical packaging manufacturers
have broadened their product portfolios to enable the most
effi cient solutions to be selected, qualifi ed and deployed on a
lane-by-lane basis across truly global supply chains. Making the
right selections and performing the necessary qualifi cations can
be daunting compared to the old simplicity of “I’ll have a tank
everywhere.” But this is the challenge we must face to deliver
value and make responsible use of dwindling resources such as
global air freight capacity.
The good news is that cold chain consultants have the tools
and resources to streamline this new approach. Packaging
products have been engineered and tested to incorporate
operational consistency and simplicity that might otherwise
make it too complex to deploy. Networks and services have also
been developed and deployed to enable effi cient and reliable
outsourcing of operations.
Sustainability driving decisions
Not long ago, pharmaceutical manufacturers viewed sustainability
advantages offered by packaging and transportation providers as a
good thing, but not a deciding factor. As we move into 2020, that
is completely shifting. With initiatives such as the United Nations
Sustainability Development Goals (SDGs) driving corporate
initiatives towards more eco-friendly practices around the world,
the use of
reusable packaging
continues to gain
acceptance
Dominic Hyde, Vice President, Credo
on Demand
the pharmaceutical industry
is much more focused on
reducing their environmental
impact. As a result, the use of
reusable packaging continues
to gain acceptance, and many
pharmaceutical manufacturers
are now requiring their
vendors to demonstrate
that their packaging and
modes of transportation
minimise negative effects on
the environment. Packaging
providers are also being
asked to provide tools to help
pharmaceutical manufacturers
measure their actual
environmental impact so they
can monitor and demonstrate
their reductions in carbon
footprint and waste.
Challenge equals opportunity
While air freight is under
downward pressure from
environmental concerns,
global tensions and diminished
capacity, to name a few,
these challenges also present
opportunities for this mode
of transport to become more
competitive. The high-yield
sector of pharmaceuticals
doesn’t look set to change
lanes away from air carriage
in the foreseeable future,
and efforts to meet the needs
of this lucrative business
represent vast potential for air
cargo, encouraging investment
in facilities and services
that continue to enhance
the air freight sector’s value
proposition.
Footnotes
1. As ‘Flying Shame’ Grips Sweden, SAS Ups
Stakes in Climate Battle, Bloomberg, April
14, 2019.
2. Air Cargo Demand Continues Negative 2019
Trend, International Air Transport Association
(IATA), May 29, 2019.
3. Will Ocean Freight Be the Dominant Mode
of Transport for Pharma Payloads?, Pharma
Logistics IQ, July 12, 2018
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