DHL is prioritizing its own cargo jets to transport pharmaceuticals and biologics, reducing reliance on third-party carriers and commercial airlines. This move aims to improve service and lower costs for temperature-sensitive shipments that require strict handling standards. By doing so, DHL can ensure logistics best practices are employed at every step of the journey, from origin handling to destination delivery. This control will also enable the company to reduce packaging costs, minimize handoffs, and minimize the risk of temperature excursions outside cold or frozen ranges for medicines and vaccines.
The restructuring of the air cargo cold chain is part of DHL's broader strategy to double healthcare logistics revenue to $10.8 billion by 2030. The company plans to invest $2.2 billion to upgrade its logistics portfolio in the life sciences and healthcare sector, with a focus on temperature-controlled networks, first- and last-mile specialty courier coverage, and integrated service offerings. This investment will also enable DHL to tap into the growing global pharmaceutical logistics market, expected to reach $159 billion by 2030.
DHL's decision to prioritize its own aviation capacity for pharma transport is driven by the need for reliable, compliant, and transparent cold chain solutions that meet rising expectations from life sciences and healthcare companies. These companies require simplified supply chains and reduced costs, which DHL aims to deliver through its expanded network. The company's air connectivity, GDP-compliant station network, and modern temperature-controlled facilities will form a resilient and efficient logistics backbone for customers who depend on flawless quality.
The rise of geopolitical tensions, capacity shortages, and growing regulatory complexity have prompted DHL to exert tighter operational control of its air network for healthcare customers. This move is part of the company's broader strategy to strengthen its position in the pharmaceutical logistics market. By taking control of pharma air logistics, DHL can ensure that shipments are handled according to stringent standards, reducing the risk of temperature excursions and ensuring the quality of critical therapies.
DHL's decision to use its own freighter aircraft for pharma transport is a significant shift towards in-house operations. The company has introduced a shuttle service between Brussels and Cincinnati using a Boeing 777-300 converted freighter aircraft, which will be operated several times per week by Michigan-based partner Kalitta Air. This move underscores DHL's commitment to providing reliable and efficient logistics solutions for its healthcare customers.
The Midwest region, where Cincinnati is located, is home to many healthcare company headquarters and manufacturing plants, while Brussels is conveniently located near major drug-making clusters in Europe. By prioritizing its own aviation capacity, DHL can ensure that shipments are handled according to stringent standards, reducing the risk of temperature excursions and ensuring the quality of critical therapies.
DHL's expanded network will bring together its global air connectivity, GDP-compliant station network, and major investments in modern, temperature-controlled facilities. This will form a resilient and efficient logistics backbone for customers who depend on flawless quality to deliver critical therapies to patients. The company's focus on pharma air logistics is expected to simplify supply chains, reduce costs, and increase quality for temperature-sensitive pharmaceuticals and biologic shipments.
The global pharmaceutical logistics market is expected to reach $159 billion by 2030, while the biopharma cold chain logistics market is set to grow at a 10.5% compound annual rate and reach $75 billion by 2033. DHL's decision to prioritize its own aviation capacity for pharma transport is well-timed, given the growing demand for reliable and efficient logistics solutions in this sector.
The company will continue to lean on Starbroker, its in-house air charter team, to source aircraft from outside carriers for short-term engagements until its network is fully installed. Key pharma hubs such as Germany, India, Singapore, and Japan are part of the intended global build-out as demand grows. DHL's focus on pharma air logistics is expected to drive growth in this sector, simplifying supply chains, reducing costs, and increasing quality for temperature-sensitive pharmaceuticals and biologic shipments.
The shift towards in-house pharma air logistics network will simplify supply chains, reduce costs, and increase quality for temperature-sensitive pharmaceuticals and biologic shipments.
