Consultant’s Insight: AIT expands reach into life sciences supply chain

AIT Worldwide Logistics ’ recent acquisition of freight forwarder Mach II Shipping demonstrates the need for flexible, real-time, responsive health care and pharmaceutical supply chains. [caption id="attachment_69752" align="alignleft" width="298"] Cathy Roberson, Cargo Facts Consulting senior consultant and Air Cargo Next columnist[/caption] A survey by consulting firm Deloitte found that 88% of respondents in the life sciences market cited production or logistics issues along with reduced logistics capacity as crucial challenges. However, improvements in supply chain visibility, transparency and data analytics are underway across the market, with great opportunities for supply chain providers and carriers. Deloitte estimates that the pharmaceutical drug delivery market will grow to $1.45 trillion in 2028 from $1.17 trillion in 2022. U.K.-based Mach II Shipping specializes in the global distribution of pharmaceuticals and related products. The AIT/Mach II deal also includes a subsidiary in the Netherlands and a global network of life sciences partners. Mach II’s global Pharmafreight partner network, formed in 2000, includes audited, approved independent freight forwarders operating under Good Distribution Practices (GDP) in 30 countries across Africa, Asia, Europe, North America and South America. GDP is a set of standards for the sourcing, handling, storage, and transportation of medicines. “In addition to temperature-controlled airfreight, Mach II provides outstanding dedicated road service for high-value life sciences moves throughout Europe with a managed fleet of temperature-controlled vehicles operated by Good Distribution Practices-trained independent contractors,” Chris Amberg, AIT’s executive vice president of life sciences, said in a Dec. 4 release from the company. “Additionally, their value-added services include in-house customs clearance and a temperature-controlled warehouse in Ashford, Middlesex, near London Heathrow Airport,” the release noted. Airfreight invests in life sciences offerings AIT Worldwide Logistics joins an impressive list of supply chain providers and carriers that also provide services to the health care and pharmaceutical market. These include: UPS , which recently acquired MNX Global Logistics and Bomi Group to extend its reach in the market; Geodis , which concluded its acquisition of Trans-o- flex earlier this year; and DHL Supply Chain , which acquired Mexico-based pharmaceutical and health care logistics specialist New Transport Applications in 2022. Specialized providers include Cryoport , which has made several logistics acquisitions and recently partnered with Nippon Express to provide temperature-controlled supply chain services for the life sciences industry globally. In 2012, Cencora , formerly known as pharmaceutical sourcing and distribution services company AmerisourceBergen , acquired World Courier , a specialty transportation, storage and distribution provider for multinational biopharmaceutical clinical trials and to other end markets. According to research group IQVIA , the United States is the largest pharmaceutical market, representing 42.6% of the global market, followed by China with 7.6% and Japan with 4.5% market share. Indeed, the U.S. Census Bureau ’s Trade Online database finds that import customs value by airfreight increased to $126.3 billion in 2022 from $95.4 billion in 2019 for the harmonized tariff code 30, which is pharmaceutical goods. By weight in kilograms, this was an increase to 106 billion kilograms in 2022 from 96.9 billion in 2019. Meanwhile, U.S. export customs value by airfreight increased to $62.8 billion in 2022 from $37.8 billion in 2019, and by weight to 88.9 billion kilograms in 2022 from 73.9 billion in 2019.

Consultant’s Insight: AIT expands reach into life sciences supply chain

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