Pharmaceutical air logistics is undergoing a structural transformation, as mergers, infrastructure investments, and real-time technologies converge to shape a more connected, compliant, and intelligent global supply chain.
From mega-mergers and CEIV-certified hubs to IoT-enabled cargo tracking and predictive AI, pharma air logistics is entering a new phase. Industry leaders are no longer just expanding networks—they’re integrating infrastructure with intelligence, and standardising services while tailoring them to complex therapies.
This transformation is already playing out in real-time, with mergers and acquisitions (M&A) reshaping the foundations of global pharma logistics.
M&A sets the tone
In April 2025, UPS announced a CAD 2.2 billion ($1.6 billion) agreement to acquire Andlauer Healthcare Group (AHG). Headquartered in Canada, AHG is a healthcare-focused company that offers supply chain services through a coast-to-coast network across North America. Earlier in January 2025, UPS completed the acquisition of German cold-chain pharma specialists Frigo-Trans and BPL, while DHL Group acquired CRYOPDP from US-based Cryoport in March 2025.
As the pharmaceutical logistics industry witnesses a wave of M&As, the competitive landscape is being redefined. These moves are not just about scale; they are about creating integrated, end-to-end, tailored solutions. “The scope of services available to pharmaceutical companies has expanded,” says Thomas Panzer, Advisor at myGrape.
myGrape is a Belgian-based Advanced Therapy Medicinal Products (ATMP) focused logistics startup, offering real-time tracking, compliance support, and quality monitoring for the delivery of personalised medicines across Europe.
“The increasing dominance of a few major logistics providers could potentially reduce competition, leading to higher long-term costs for customers and less incentive for innovation.”
Thomas Panzer, myGrape
Panzer notes that this shift is also driving greater cost efficiency. “M&As often result in economies of scale,” enabling providers to lower per-unit costs and invest in advanced infrastructure. This, in turn, benefits pharmaceutical companies through “predictable pricing models,” which are crucial for handling high-cost, sensitive products.
Consolidation also enhances service reliability, a vital concern in pharma logistics. “Market consolidation allows for the standardisation of processes and systems across regions,” Panzer explains. The result is more consistent service quality and lower risk of disruption, especially important in a sector where global regulatory compliance is non-negotiable.
Still, this transformation isn’t without its challenges. Integrating newly acquired entities can create “initial disruptions” due to system incompatibilities and cultural differences.
And while consolidation brings efficiency, Panzer warns of the downside: “The increasing dominance of a few major logistics providers could potentially reduce competition,” which might eventually limit innovation or drive up long-term costs.
Meanwhile, Anand Kulkarni, Head of Global Markets at Lufthansa Cargo, observes that consolidation in the healthcare logistics sector is accelerating the demand for fully integrated, door-to-door solutions with consistently high-quality standards.
“M&A activity can reshape competitive dynamics and pricing structures, and the need for reliable and strong partners such as Lufthansa Cargo within their end-to-end supply chains remains inherent,” he says.
While the broader pharmaceutical logistics sector is seeing rapid consolidation through high-profile M&As, the ground and warehouse handling segment remains “highly fragmented,” says Dirk Goovaerts, CEO Continental Europe, Middle East, Africa, India, and Global Cargo Chair at Swissport.
In this environment, Swissport is taking a measured and deliberate approach. “We continue to evaluate a range of opportunities to leverage M&A,” Goovaerts explains, but with a clear focus on strategic fit.
The pharmaceutical cargo landscape is entering what Syed Haris Raza, Vice President of Cargo at dnata USA, calls “the next era of logistics.”
“UPS’s strategic pivot towards healthcare logistics and DHL’s CRYOPDP acquisition, and other similar deals are signals of the next era of logistics: integrated, scalable, highly personalised and clinically attuned,” he said.
These moves are consolidating the industry, concentrating power among fewer but more capable players. While this consolidation brings advantages—“expanding global reach and streamlining cost structures,” as Raza notes—it also raises the stakes for differentiation.
“In a market of giants, value is created not just by size, but by insight, empathy, and execution,” he emphasises.
"Ground and warehouse handling within air cargo logistics remains a highly fragmented industry. At Swissport, we continue to evaluate a range of opportunities to leverage M&A."
Dirk Goovaerts, Swissport
Infrastructure as a differentiator
As consolidation redraws the competitive map, the focus is shifting to infrastructure. Global networks alone aren’t enough—pharma shippers now demand specialised facilities, from CEIV-certified hubs to temperature-controlled handling, where execution matters more than scale.
“The expansion of CEIV-certified pharma hubs and cold chain infrastructure at our global hubs is a cornerstone of our strategy in leading next-gen innovation in the pharma sector,” says Raza.
These investments, he explains, are transforming the way dnata operates. “They’re catalysts for creating value, to enable more consistent temperature control, faster throughput, and greater trust from shippers.”
But achieving that level of consistency isn’t without its challenges. “The challenge remains aligning global standards with local execution,” he notes.
While dnata focuses on embedding innovation at its core hubs, Swissport is expanding its footprint by investing in facility upgrades and extending cold chain capabilities across its global network.
“Swissport continues to invest in the enhancement of its facilities and actively seeks opportunities to expand its network through new warehouse locations,” says Goovaerts.
According to him, recent capability upgrades at major cargo hubs like Frankfurt, Amsterdam, Madrid, and Liège are a testament to this strategy.
Goovaerts highlights the Liège facility in particular, where Swissport now provides “the entire Liège community access to a temperature-controlled flower corridor,” extending its pharma-handling expertise to perishable flows as well.
"We observe that consolidation in the healthcare logistics sector is accelerating the demand for fully integrated, door-to-door solutions with consistently high-quality standards."
Anand Kulkarni, Lufthansa Cargo
As Swissport broadens its reach with targeted infrastructure investments, Lufthansa Cargo is strengthening its global backbone through a robust network of certified pharma stations and a state-of-the-art hub in Frankfurt.
“Lufthansa Cargo has strategically enhanced its pharma and healthcare logistics infrastructure to support the growing global demand,” says Kulkarni.
At the core of this strategy is a network of over 350 stations worldwide, including 230 equipped for passive temperature support and 120 for active temperature control.
This extensive reach is anchored by its CEIV Pharma-certified hub in Frankfurt—“one of the most advanced in the world and the largest airside pharma hub in Europe,” Kulkarni notes.
The Frankfurt hub’s temperature-controlled storage areas and optimised apron processes ensure strict compliance with temperature ranges, critical for safeguarding sensitive products.
Complementing this is a “steadily growing network of certified stations across Europe, North America, Asia, and beyond,” including 30 CEIV Pharma and six GDP-certified locations.
As carriers like Lufthansa build scale and sophistication into their infrastructure, experts like Panzer from myGrape caution that true resilience demands more than just hardware—it hinges on execution at the most vulnerable links.
One of the most persistent vulnerabilities lies on the tarmac. “Mishandling during the critical tarmac phase—where temperature-sensitive products are sometimes left exposed—remains a challenge,” Panzer explains. Despite the availability of state-of-the-art facilities, temperature excursions still occur due to “unpredictable weather or operational delays at airports.” It’s a reminder that infrastructure alone cannot guarantee integrity without process discipline.
Another key concern is the human factor. “While technology can provide visibility, human error remains a risk unless employees are adequately trained to handle sensitive pharmaceutical products,” Panzer says.
Adding to the complexity is the challenge of integrating new infrastructure into global supply chains. “There are often discrepancies in processes and standards across different regions,” Panzer notes, making “seamless integration complex.”
“UPS’s strategic pivot towards healthcare logistics and DHL’s CRYOPDP acquisition, and other similar deals are signals of the next era of logistics: integrated, scalable, highly personalised and clinically attuned.
Syed Haris Raza, dnata
From smartULDs to predictive AI
Even the best infrastructure needs digital intelligence to deliver. As pharma cargo grows more complex, the real edge lies in how data is tracked, interpreted, and used—transforming speed, visibility, and control across the supply chain.
For instance, in June 2025, Etihad Cargo, the cargo and logistics arm of Etihad Airways, launched a premium service that gives customers real-time access to end-to-end shipment monitoring SmartTrack.
In explaining the capabilities of SmartTrack, Stanislas Brun, Chief Cargo Officer at Etihad Cargo, noted that the service enables both forwarders and shippers to maintain full control over shipments from origin to destination, including every checkpoint along the way and even during the flight itself.
“The device connects to a website during transit, allowing customers to access real-time data on not just the shipment’s location, but also critical parameters like temperature, humidity, light exposure, shock and tilt,” he said.
“This information is updated every 30 minutes, and if there’s a significant change—like a temperature excursion—the system automatically sends an alert within 15 minutes.”
Such end-to-end visibility, Brun emphasised, ensures complete transparency and strengthens quality assurance across the supply chain. “Air freight is a premium service, and our customers want to know that every part of the journey is monitored and under control—especially when it comes to sensitive shipments like pharmaceuticals,” he added.
Kulkarni of Lufthansa Cargo also pointed to the growing role of digital tools and intelligent monitoring systems in safeguarding temperature-sensitive shipments. “We’ve adopted smart sensors in active containers and digital tracking through our ‘smartULD’ service, which allows customers to access real-time data on both temperature and location throughout the journey,” he said.
Further strengthening shipment integrity, Lufthansa Cargo recently launched its Pharma Control Tower, a centralised 24/7 monitoring system for both passive and active temperature-controlled shipments. “This setup allows for early intervention if any irregularities occur—especially at our major hubs—ensuring that risk is addressed before it becomes a problem,” Kulkarni explained.
Additional layers of protection include the use of thermo covers on select routes to shield passive shipments from ambient temperature fluctuations, and the expansion of its high-speed td.Zoom service to now support passive cooling solutions.
Building on these digital advancements, ground handlers are also pushing the envelope by integrating real-time technologies deeper into frontline operations.
Raza of dnata highlighted the tangible impact of IoT and AI in transforming day-to-day cargo operations.
“We’re actively integrating IoT-enabled sensors and AI-based monitoring platforms that not only provide real-time visibility but also empower our frontline teams with actionable data,” he said. “This significantly reduces spoilage and ensures traceability across the entire value chain.”
For Raza, the convergence of digital technologies is no longer a distant prospect. “IoT and AI in logistics isn’t the future—it’s already here,” he noted.
dnata is also exploring blockchain pilots, particularly for clinical and personalised medicine supply chains where immutable data trails are essential.
Whether it’s a temperature-sensitive biologic, a time-critical gene therapy, or a global vaccine rollout, the demands on pharma air logistics are growing more intense and intricate. In this new era, success won’t belong to the biggest player, but to the one who delivers consistency, transparency, and control at every node of the journey.
The article was originally published in the July 2025 issue of The STAT Trade Times.