Express logistics providers bet big on health care business

2 months ago 18

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Eric Kulisch

Tue, Apr 8, 2025, 6:18 AM 4 min read

The large 3 integrated parcel and logistics carriers are aggressively targeting the high-margin wellness attraction vertical arsenic a nett center, with DHL connected Monday announcing a $2.2 cardinal concern implicit 5 years and FedEx expecting to seizure $400 cardinal successful concern from caller wellness attraction customers.

Not to beryllium outdone, UPS (NYSE: UPS) successful January acquired Frigo-Trans and sister institution BPL, which supply temperature-controlled warehousing and proscription successful Europe for pharmaceutical and biotech companies.

The companies are funny successful wellness attraction due to the fact that the precocious method and compliance requirements let for lucrative value-added services beyond basal parcel transportation. The wellness attraction logistics marketplace is estimated to scope $152 cardinal adjacent year, up from $130 cardinal successful 2023 arsenic an aging planetary colonisation needs much drugs and biologic aesculapian products to woody with chronic disease, according to manufacture experts.

DHL Group (DXE: DHL) connected Monday said it planned to put $2.2 cardinal to upgrade logistics capabilities and footprint successful the beingness sciences and wellness attraction sector. Half of superior expenditures volition beryllium allocated to the Americas, with the equilibrium divided betwixt Asia-Pacific and the Europe, Middle East and Africa region.

The concern is portion of DHL’s caller strategy to treble wellness attraction logistics gross to $10.8 cardinal by 2030, with an extended temperature-controlled network, first- and last-mile specialty courier coverage, and integrated work offerings. Last week, DHL agreed to get Nashville, Tennessee-based CryoPDP, a specialty courier that provides logistics services for objective trials, biopharma, and compartment and cistron therapies, for $195 million.

Investments volition ore connected improving infrastructure and exertion from mill to patient, including temperature-controlled storage, bid fulfillment, distribution, planetary shipping and last-mile delivery. DHL said the enhancements volition let it to present integrated wellness attraction solutions, portion improving transportation velocity and reliability for pharmaceutical, biopharma and aesculapian instrumentality customers, arsenic good arsenic patients.

DHL, headquartered successful Bonn, Germany, precocious created DHL Health Logistics to service arsenic an umbrella marque for end-to-end capabilities disposable crossed the DHL Express, Global Forwarding and Supply Chain divisions. Life sciences and wellness attraction contributed much than 5 cardinal euros ($5.4 billion) successful gross to the radical successful 2024.

A important portion of the concern volition beryllium budgeted for caller cross-divisional pharma hubs for transporting multitemperature shipments, expanding acold concatenation capableness successful existing facilities, ordering caller temperature-controlled vehicles and enhancing insulated and refrigerated containers, DHL said.