The Big Three integrators, UPS, FedEx and DHL, whose logistics capacity is already under strain from a pandemic-related B2C e-commerce boom and traditional peak season retail demand, have invested in new services and facilities ready for the imminent historic challenge of distributing COVID-19 vaccines worldwide.
DHL already highlighted the scale of the task in hand in a White Paper entitled 'Delivering Pandemic Resilience' that it published in September. This estimated that the mega logistics operation could entail some 200,000 movements by pallet shippers on 15,000 flights to ensure the global delivery of around 10 billion doses of COVID-19 vaccines over the next two years. For downstream distribution almost 15 million cooling boxes, paired with cooling bricks or dry ice, would be required.
UPS, FedEx and DHL will ship Pfizer vaccines
Around mid-December, 6.4 million doses of drug company Pfizer’s vaccine will be shipped out across the United States in an initial push after it receives an expected emergency authorization, officials leading Operation Warp Speed (the US administration’s initiative to fast-track a vaccine) told journalists yesterday, according to a New York Times report.
Pfizer will ship doses of the vaccine via UPS and FedEx in special coolers packed with dry ice that will hold a minimum of 975 doses, which must be used up within a few weeks or stored in an ultracold freezer for up to six months.
In an e-mailed response to a query from CEP-Research on Pfizer's air cargo and road freight capacity requirements in the US and Europe for the transport and distribution of the COVID-19 vaccine, the drug company said: “We will be utilizing road and air modes of transportation via our main carrier partners such as UPS and FedEx in the US where we expect to be able to get product to the point of use (POU) within a day or two. Similarly, in the EU, we are using FedEx and DHL where we expect product to arrive at POU within three days on average.”
Pfizer's logistics effort to deliver the vaccine revolves around refrigerated storage sites at two of its final assembly centres – the Kalamazoo facility in the US state of Wisconsin and another in Puurs, Belgium – and will rely on dozens of cargo flights and hundreds of truck trips every day. Distribution centres in Pleasant Prairie, Wisconsin and in Karlsruhe, Germany, have been outfitted for extra storage capacity.
UPS adds mobile freezers and expands dry ice production
UPS yesterday announced that its Healthcare unit was enhancing its dry ice production capabilities and launching mobile freezer storage units in response to handling “complex” vaccines for customers.
“UPS is proud to be a key player in the global public-private partnerships preparing to distribute vaccines to the world. We have significant knowledge and extensive expertise to meet the needs and demands for testing kit and vaccine distribution. Together with other critical players in these supply chains, we are ready to deliver what matters most. UPS is preparing highly orchestrated logistics and distribution services to support global lifesaving operations,” a spokesperson said.
DHL offers supply chain and express solutions
DHL said the requirements for the distribution of COVID-19 vaccines could vary depending on the manufacturer and therefore involve a combination of the solutions available from its different business units. For example, the Express unit offers a temperature-controlled solution via its Medical Express service.
“We currently transport dry ice shipments in our network and provide a dry ice top-off service in transit and packaging and dry ice supply to healthcare facilities around the world for the clinical research sector. Vaccines can be shipped via DHL Express with dry ice and be topped off during transportation to ensure the temperature range required is met, even at -80°C,” a spokesperson told CEP-Research.
“Also, DHL Supply Chain is in discussions with vaccine manufacturers about providing its control tower and lead logistics provider capabilities to support them with managing the complex routing and carrier selection requirements for the vaccine shipments.”
Life sciences investments
However, out of DHL's units, it is Global Forwarding which is likely to have the most significant involvement in the distribution of COVID-19 vaccines.
“We realized when the pandemic started that prioritizing aid and medical products around the world was crucial and with our capabilities of skilled people on the ground and an efficient network for the LSH (Life Sciences and Healthcare) sector we were capable of meeting our customers’ needs immediately,” explained David Goldberg, CEO, DHL Global Forwarding, US. “We started investing in our network and supplementing additional services due to the airfreight capacity crunch – from the beginning.”
This has included the opening of a $1.6 million state-of-the-art LSH facility in Indianapolis. “Geographically well-situated to service the (US) Midwest, Northeast, South and Southeast regions, this new addition helps customers navigate pandemic challenges and meet post-pandemic needs,” he said.
DHL Global Forwarding is also spending $650,000 at its facility in San Juan, Puerto Rico, “to add additional capabilities and technology to our Americas network for the LSH sector”, Goldberg said. A 'deep-frozen' room is being added, designed to maintain ultra-cold temperatures such as those required to store the COVID-19 vaccines developed by Pfizer and another drug company, Moderna.
On the air cargo side, the unit has established a dedicated charter flight programme “to help our customers specifically focused on LSH shipments,” he added.
FedEx has worldwide cold chain network
Meanwhile, FedEx has described shipping COVID-19 vaccines as “complex and critical work with many moving parts.” In a global update it said it was working closely with governments and healthcare customers on vaccine distribution plans.
“With the largest cargo fleet of airplanes, FedEx Express has the flexibility and customized solutions, including charter flights, refrigerator trucks and trailers, warehousing, thermal blankets, and temperature-controlled containers, to help safely move temperature sensitive shipments, such as vaccines and other bioscience shipments, around the world,” the company said.
Over the past three years, FedEx has added more than 10 secure cold chain facilities across its global network and at present it has more than 90 cold chain facilities across the Americas, Asia, Australia and Europe with the opening of additional facilities planned in the coming years. To complement its existing cold chain capabilities in support of the vaccine distribution, the company is also exploring a combination of solutions including stationary freezers, temperature-controlled ocean containers, and refrigerated trailers.
Working with the FAA, FedEx has significantly increased its capability to carry dry ice aboard its cargo aircraft, allowing it to service more healthcare shippers. “On average, we now transport approximately 500,000 dry ice shipments a month. While standard country-specific restrictions on dry ice still apply, we can now move critical healthcare shipments, like the vaccines, faster between more than 100 countries on our Boeing 767s and 777s,” it pointed out.
The company concluded: “In addition to the vaccines themselves, FedEx is also working closely with the healthcare industry to transport other supplies critical to the distribution of vaccines such as vials, syringes, and personal protective equipment.”
