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Global Air Cargo Trends Re-Shaping Pharmaceutical Transport

Pharmaceutical

Global Air Cargo Trends Re-Shaping Pharmaceutical Transport

As we welcome the new decade and the exciting advances it is expected to unleash, many of the forces that shaped the past decade for transporting pharmaceuticals will continue. Price pressures, alternatives to air freight and increasing automation are just a few. However, there are emerging trends that make 2020 unique.

As we look forward, these are the air cargo trends expected to shape the transport of pharmaceuticals in 2020 and beyond.

The Greta Thunberg Effect — Flying Shame

We can’t ignore the effect that climate change activist Greta Thunberg is having on air travel that runs on fossil fuels. Thunberg’s reliance on trains to travel from her home country of Sweden to other countries in Europe connected by rail has triggered a material effect on passenger numbers in Sweden. According to Bloomberg, Swedish air travel diminished in 2019 — while train travel jumped to a record level.1

What could this mean for shipping pharmaceuticals by air? As “extinction rebellion” shows no sign of slowing down, air freight carriers — like their passenger transporting counterparts — will feel more pressure to seek alternative fuel sources and replace older planes with more fuel-efficient models. To further address the Thunberg effect, carriers and their logistics partners will also need to elevate their brand image by demonstrating they are adopting eco-friendly practices such as reusable or waste-stream friendly shipping containers made from recyclable materials. Especially for shipping pharmaceuticals, these shipping containers must still maintain strict temperature control to ensure valuable payloads arrive intact.

Global Trade Pressures Drive Down Air Freight Demand

After years of wrangling over the details of Brexit, the UK is departing from the European Union (EU) — and entering a transition period through the end of 2020. The effects of Brexit and the fact that Germany only narrowly avoided an official recession at the end of the last decade have been driving down European air freight demand. Furthermore, US tariffs aimed at four counties in retaliation over subsidies to Airbus has hit Germany especially hard.

Meanwhile, the US-China trade war began to thaw with the signing of an initial trade deal. But trading data showed the climate would have to improve significantly to combat the year-on-year 8.1% decline in freight tonne kilometers experienced in 2019.2 Price is the crudest and quickest tool at air freight’s disposal to address diminishing 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 flights from their schedules and mothball aircraft — and cease to exercise purchasing options that did not factor in declining demand.

Diminished Air Freight Demand Means 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 in recent years as an alternative transport mode for non-temperature 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 efficiency.

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 efficiently for both financial 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 difficult in less developed regions of the world.

 Pharmaceutical Packaging: No Longer Rickshaw Vs. Tank

When it comes to pharmaceutical packaging, one size does not fit 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 efficient solutions to be selected, qualified and deployed on a lane-by-lane basis across truly global supply chains. Making the right selections and performing the necessary qualifications 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 efficient and reliable outsourcing of operations.

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Dominic Hyde is the Vice President of Crēdo on Demand at Pelican BioThermal.

References:

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

vaccines

Report: Global Vaccines Market

The U.S. vaccine market is anticipated to experience growth of 8.9% CAGR during the forecast timeframe. The high adoption rate of vaccines to reduce the incidence of infectious diseases along with several initiatives undertaken by government by increasing immunization rates and recommendations should stimulate business growth.

Japan’s vaccine market will grow significantly over the coming years to reach over USD 6.0 billion by 2025. Introduction of the routine vaccination program in October 2016 leading to the introduction of numerous important and routine vaccines having a higher rate of administration as compared to voluntary vaccines should drive the Japan vaccine market.

Increasing demand for preventive vaccines, the rising number of people suffering from infectious as well as non-infectious diseases globally will drive the vaccine market over the forecast timeframe. Increasing government funding for vaccine development will further boost industry growth.

Widespread routine vaccination programs and numerous initiatives undertaken by governments to encourage vaccine administration especially in developing and underdeveloped countries will positively impact industry growth. Growing awareness about reduced mortality due to immunization should propel vaccines industry growth over the forecast period.

High adoption of new vaccines coupled with technological advancements should stimulate business growth. Moreover, a strong product pipeline of leading companies such as Merck, Novavax, Emergent BioSolutions will lead to industry expansion over the coming years. However, high costs associated with transportation and storage of vaccines will limit the vaccines market growth to a certain extent over the foreseeable future.

Each time a nation is hit by an epidemic wave, children are one of the groups that take the deadliest hit. According to the Centers for Disease Control and Prevention, 1 or 2 of every 1,000 children who are diagnosed with measles die. During the nation’s recently witnessed measles outbreak, around 92 percent of children received a combination vaccine that prevents measles, rubella, and mumps. Immunization programs prevent and protect toddlers and infants from dangerous complications and failing to vaccinate may certainly put them at risk for fatal diseases. This has escalated the demand for vaccines for kids, which has subsequently influenced the growth curve of the vaccines market from the pediatric populace.

As per estimates, vaccines industry size from the pediatric age group is set to witness a CAGR of 9.1% over 2019-2025, given the high vulnerability of kids to infectious diseases along with the increasing implementation of pediatric immunization programs.

Driven by the ongoing pace of urbanization and the rising awareness regarding the potential dangers a pandemic can inculcate, the global vaccines industry is gaining increased attention. According to a new research report by Global Market Insights, Inc., the overall vaccines market size is anticipated to surpass $70 billion by 2025.

Some of the major market players involved in the global vaccines market are Merck, AstraZeneca, Johnson & Johnson, Novartis, Bristol-Myers Squibb, Abbott, Sanofi Pasteur, GlaxoSmithKline, Pfizer, Emergent BioSolutions, CSL, Astellas Pharma and Novavax. Firms are focusing on product launch to fortify their product base and market reach over the coming years.

Source: Global Market Insights, Inc.

healthcare

Healthcare Analytics Market Size to Cross $18,250.8 million by 2025

Emergence of Big Data in healthcare and its impact on healthcare analytics market growth and set to exceed USD 18,250.8 million by 2025

There has been a significant paradigm shift in recent years pertaining to the collection, storage, maintenance, management and analysis of data. Over the years, bolstered by the wave of digitalization sweeping across the globe, data collection is transitioning gradually from paper-based charts to digital real-time analytics systems. 

This new data ecosystem is designed not just to enhance disease prevention rates but also to improve medical diagnostics, administer medications securely and augment overall treatment processes. Consequently, healthcare offerings are evolving from a one-size-fits-all approach to more patient-centric, customized treatment plans. 

The rising prevalence of big data owing to digitization of analytics is promoting the adoption of electronic health records or EHRs for patient’s health data collection, which is likely to add great impetus to global healthcare analytics market expansion.

The evolution of the healthcare landscape is generating immense demand for advanced healthcare data analytics. 

Healthcare analytics or clinical data analytics entails the use of EHRs to garner actionable insights into patient’s health condition and develop suitable treatment plans.

As the number of patients seeking healthcare solutions continues to surge and resources continue to deplete, conventional claims-based analytics systems are unable to accommodate the rapidly arising healthcare issues. This combined with the immense capacity of clinical data in EHRs is a major driving force behind the popularity of advanced healthcare analytics.

Considering the prolific expansion of the healthcare industry, numerous industry players are making persistent efforts towards enhancing health data analytics systems to streamline patient care.

For instance, InterSystems has recently partnered with digital engineering expert Virtusa in a bid to advance healthcare data analytics capabilities in vLife, Virtusa’s cloud-based life sciences platform.

The system comprises a robust, HIPAA-compliant data repository with multiple sources of data. Additionally, the platform features pre-built APIs as well as AI and machine learning-based models.

Prediction to Prevention – The Significance of Predictive Analysis in Healthcare Applications

Predictive analytics is a sophisticated healthcare data analytics tool that leverages historical data and real-time information in order to forecast potential outcomes. Considering the healthcare landscape, predictive analytics can be applied to consumer, claims or patient data through which healthcare workers can predict patterns or trends which can help enhance patient care or outreach programs.

To illustrate, according to a 2017 study, the University of Pennsylvania utilized a predictive analytics tool integrated with machine learning and EHR information to detect severe sepsis or septic shock in on-track patients, nearly 12 hours before the condition manifested.

Burgeoning need for Real-Time Healthcare Solutions

Empowered by the digital revolution, a large number of healthcare management systems are now leveraging real-time, event-driven data feeds. 

Since healthcare is a real-time activity, the ability to accumulate health-related data in real-time is a great boon for healthcare workers and clinicians. It gives them the ability to make point-of-care lifesaving decisions and reduce the dependency on resources, thereby cutting back treatment costs to a significant extent.

Real-time analytics demonstrate great potential in various healthcare-related scenarios; for instance, in the case of a patient’s blood pressure signifying an alarming increase, the healthcare analytics will send a real-time report to the doctor, who can immediately act on administering suitable measures to counteract the condition.

Many prominent industry players are working towards adopting real-time monitoring into their product innovations. For example, Apple has just revealed a new Apple Watch Series 4 with an integrated EKG (electrocardiogram) features, which helps users track their cardiovascular information in real time and alert them to any undiagnosed conditions.

Healthcare Analytics Transformation through Big Data

The emergence of big data has brought about a tremendous shift in the way data is collected, analyzed and used in a plethora of industries. Big data comprises large quantities of data generated through digitization of myriad sources, which is then merged and analyzed by specialized technologies. When used in healthcare analytics, big data makes use of population or individual-specific health data which can potentially mitigate the risk of epidemic, treat maladies and reduce costs, among other benefits.

In light of the changing healthcare spectrum, more and more physicians are basing their decisions on ample quantities of clinical data instead of simply asserting their professional theoretical opinion. 

With the healthcare industry swelling and more and more data being collected, professionals need a support system to ensure proper management and application of data. This is perhaps why the demand for big data analytics across the healthcare sector is witnessing such tremendous growth.

The U.S healthcare analytics market is currently making immense strides in big data analytics, by ensuring the adoption of EHRs across nearly 94% hospitals. A major industry player in the U.S market is Kaiser Permanente, who has developed and integrated a novel system called Health Connect. This system allows data sharing across multiple facilities and streamlines the use of EHRs.  

Source: https://www.gminsights.com/industry-analysis/healthcare-analytics-market 

CEIV pharma

DACHSER India Branches Boast CEIV Pharma Certification

DACHSER’s Mumbai and Hyderabad branches are among the few companies in India to receive the prestigious Center of Excellence for Independent Validators in Pharmaceutical Logistics certification  recognizing exemplary operations in transporting Life Science and Healthcare (LSH) products. Such products are both temperature and time-sensitive, requiring meticulous, accurate, and high standards in monitoring and handling to ensure product quality.

“Congratulations to DACHSER India on their CEIV Pharma certification. The time and temperature sensitive nature of pharmaceutical products means the highest standards are needed to make sure product integrity is maintained for such shipments,” said Vinoop Goel, IATA’s Regional Director for Airports and External Relations, Asia-Pacific. “With India being a major supplier of pharmaceutical products, DACHSER India’s CEIV Pharma certification will give pharmaceutical companies confidence and assurance that their cold-chain logistics requirements are being met.”

Difficult to obtain, the CEIV Pharma certification is earned by companies implementing efficient, safe, and excellence in transporting LSH products. Currently, DACHSER’s Hyderabad branch is one of two companies in the region to boast the accreditation. Through a strenuous audit ensuring compliance among all all facilities, equipment, operations and staff, DACHSER applied for the certification with the goal of adding to its already extensive history in handling pharma products.

“Obtaining the CEIV Pharma certification is an important milestone for DACHSER India. It emphasizes our continued focus for providing highly reliable logistic services to our valued customers in the LSH segment”, said Huned Gandhi, Managing Director, Air & Sea Logistics for the Indian Subcontinent. “Quality and efficiency have always been the cornerstones for our success and our teams are extremely proud to receive this accreditation from IATA.”
“By way of CEIV certification at our Mumbai and Hyderabad branches, DACHSER India has made a big step forward to further enhance its operational and technical competencies in serving our LSH customers,” concluded Zarksis Munshi, Head of Air Freight, Air & Sea Logistics India Subcontinent.

SkyCell & Air France KLM Martinair Cargo Extend Collaboration for Pharma Logistics

In an effort to extend improved and innovative services for clients, SkyCell – known as the fourth largest pharma airfreight container provider, and
Air France KLM Martinair Cargo, confirmed they will extend their collaboration globally with plans to present it to the global AF KLM network. Air France KLM Martinair Cargo boasts one of the largest and densest global networks.

“Air France KLM Martinair Cargo values of Transparency, Innovation and Care match the values of SkyCell: we are both committed to provide the highest quality standards to our clients in the most transparent and innovative way. SkyCell is driven by technological innovation in pharma transport technology and that is why we want to work very close together,” said Enrica Calonghi, Global Head of Pharmaceutical Logistics at Air France KLM Martinair Cargo.

In a recent evaluation from one of the Big Four international audit companies, SkyCell’s shipments from the last 12 months showed a
0.1 percent of the transports involved a temperature excursion with their containers. The companies share a common theme in transparency in addition to customer-driven services.

“Air France KLM Martinair Cargo is a pioneer in pharma airfreight services and has an extensive network. With a shared vision of innovation in the supply chain of temperature-sensitive products, our collaboration will ensure that consumers are guaranteed a safe and sustainable service. We will also further improve our services through SkyCell’s data-driven approach,” said Richard Ettl, CEO of SkyCell.