Global logistics powerhouse DHL is reducing reliance on third-party carriers and commercial airlines in favor of its own freighter aircraft to improve service and lower costs for temperature-sensitive pharmaceuticals and biologic shipments that require handling according to stringent standards.
DHL (FSE: DHL) announced last week that it will prioritize use of its own aviation capacity on specially designated routes around the world.
The recent introduction of a shuttle service between the DHL hubs in Brussels, Belgium, and Cincinnati utilizing a Boeing 777-300 converted freighter aircraft marked the shift to a dedicated, DHL-operated airfreight refrigerated network, the transportation company said. The cargo jet, which is operated several times per week by Michigan-based partner Kalitta Air, is painted with a “Health Logistics” label to underscore the use of equipment set aside specifically for medical industry customers.
The Midwest, where Cincinnati is located, is home to many healthcare company headquarters and manufacturing plants. Brussels is conveniently located near major drug making clusters in Europe.
Bringing the pharma air logistics network fully in-house allows DHL to ensure logistics best practices are employed at every step in the journey — from origin handling, temperature-controlled airport processes, loading and unloading, flight operations and destination delivery. Biologics, vaccines, and specialized cell-and-gene therapies require consistent temperatures, often between 2°C and 8°C, and sometimes as low as -70°C, to maintain effectiveness. Regulatory frameworks such as Good Distribution Practices impose strict requirements for visibility, documentation, and quality throughout the supply chain. Operators that invest in refrigerated infrastructure and process discipline usually are favored by medical companies.
By exerting direct control and ensuring shipments stay within pharma-only warehouse zones, DHL says it can reduce reliance on heavy, costly packaging and refrigerated in-flight containers, reduce handoffs and minimize the risk of temperature excursions outside prescribed cold or frozen temperature ranges — thereby lowering costs and increasing quality.
The restructuring of the air cargo cold chain is part of a broader DHL Group strategy to double healthcare logistics revenue to $10.8 billion by 2030, aided by an extensive temperature-controlled network, first- and last-mile specialty courier coverage, and integrated service offerings. Last April, DHL said it planned to invest $2.2 billion to upgrade its logistics portfolio in the life sciences and healthcare sector. 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, according to various market research reports.
Until the network is fully installed, DHL will lean on Starbroker, its in-house air charter team, to source aircraft from outside carriers for short-term engagements, a spokesman explained via email. Key pharma hubs such as Germany, India, Singapore, and Japan are part of the intended global build‑out as demand grows.
“Life sciences and healthcare companies expect cold chain solutions that are reliable, compliant, and transparent from end to end – and those expectations are rising fast,” said Oscar de Bok, CEO of DHL Global Forwarding, Freight in a news release. “At the same time, they’re looking for ways to simplify supply chains and reduce costs. Our expanded network brings together DHL Aviation’s global air connectivity, our GDP-compliant station network, and our major investments in modern, temperature-controlled facilities. The result is a more resilient, more efficient logistics backbone for customers who depend on flawless quality to deliver critical therapies to patients.”
The rise of geopolitical tensions that impact trade flows, capacity shortages and growing regulatory complexity prompted DHL to exert tighter operational control of its air network for healthcare customers, the company said.
Last year, rival FedEx launched a flight connecting Dublin and Indianapolis four times per week to bypass congested East coast gateways and speed up transport of healthcare and other high-value freight products by a day. Ireland is a major pharmaceutical and biopharma center. Many pharmaceutical and medical equipment companies are also based in Indiana.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
Write to Eric Kulisch at [email protected].
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