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Embrace customers' cold chain requirements and open up lucrative and growing air cargo business opportunities
February 16, 2006
Speaking at the Air Freight Asia 2006 conference in Shanghai, China, Welander told delegates: “The volume of temperature sensitive high-value products being shipped by air cargo is increasingly rapidly. As supply chain lead times and product life cycles are becoming shorter due to competition and regulatory bodies continue to impose stricter health guidelines, shippers of these products – particularly in the pharmaceutical sector – are prepared to pay for quality.
Many of the world’s top airlines and logistics organisations already offer a defined choice of cold chain products for the healthcare and food sectors, he added, but others are missing out on a ready-made business opportunity. “Customer demand is growing and the temperature-controlled container and cold chain management solutions are proven and available to everyone now. It is simply a case of suppliers taking time to understand the needs of the healthcare and food sectors and then taking advantage of the cold chain products and services that already exist to support their market offering.”
The need for temperature controlled airfreight is increasing daily, he said. In the healthcare industry, the Bio-med revolution means that temperature-sensitive products are the quickest growing segment of the industry. New markets are opening up while the regulatory focus is on good distribution practices.
Healthcare organisations are fully aware that only a strict cold chain management regime will ensure products they have often invested hundreds of millions of dollars in developing arrive at their destination safely, at the right temperature and ready for consumer use.
”Safeguarding the large investment in new pharmaceutical projects now extends well beyond just research and development. Temperature is one of the key influencers on product quality and the consequences of getting it wrong can be devastating in terms of cost and damage to a company’s reputation. That’s why cold chain management throughout the supply chain is now an essential component in the thinking of the world’s leading pharmaceutical companies,” Welander said.
Similar opportunities exist in the food industry, driven by consumer expectations of finding their favourite products year-round and more quality awareness among both retailers and consumers. In particular, the fast growth in ‘prepared foods’ is leading to an increase in air cargo volumes as supermarkets around the world look to supply more of these higher value but more time sensitive products.
Air cargo is a critical component in these global supply chains and it always will be given the global nature of supply and demand. He highlighted the strong pharmaceutical manufacturing base in Australia, Japan and India, the substantial growth expected in both manufacturing and consumption of pharmaceutical products in India, China, Singapore and Malaysia. Prepared food shipments from South East Asia to Europe are increasing while countries such as Japan, Hong Kong and Taiwan have large imports of high value food products.
For its part, he said Envirotainer was continually reinforcing its position as the leader in developing active temperature-controlled air transportation solutions. Having pioneered the world’s first active temperature-controlled air cargo container 10 years ago, Envirotainer has more recently introduced smaller containers for clinical trials shipments, launched cold chain management validation and qualification services to help businesses set up product cold chains and, in 2005, launched a new electrical heating and cooling container to safely transport highly sensitive pharmaceutical products in extreme temperature environments.
Magnus Welander said: “Envirotainer’s development is a strong indicator of the demand for cold chain solutions. 2005 was a record year for our company in terms of revenues and container rentals. Overall, the temperature sensitive product market for pharmaceuticals is expected to grow at least 15% per year for the next 10 years, stimulated by the more than 370 temperature sensitive biotechnology products now in the clinical trials stage.
“In the food sector, more prepared foods are being sold but these are more sensitive and need to be shipped faster and in more controlled conditions. Companies with strong international brands cannot allow themselves to serve food that is not top quality. So, to air cargo businesses yet to consider developing a cold chain solution to offer their own customers, my message is simple: what are you waiting for!” |
