UPS has announced a $48m investment into 27 temperature-controlled freight cross-dock facilities for healthcare and pharma logistics.
The facilities are located in key US and international markets, including Europe, Asia and the Americas and are optimised for speed and short-term storage between air and ground movements.
UPS cited growing demand for medicines requiring strict temperature ranges of two to eight degrees Celsius, 15 to 25 degrees Celsius and frozen conditions for the decision.
Why this matters
The rapidly expanding pipeline of biologics is adding complexity to cold-chain logistics.
As therapies such as cell and gene therapies, mRNA platforms and GLP-1 injectables enter the market, healthcare supply chains are becoming increasingly complex and risk-sensitive.
One major source of this risk is temperature excursions, which can lead to significant cold-chain failures.
These failures are estimated to cost up to $35bn annually and, according to the World Health Organization (WHO), contribute to nearly 50% of global vaccine waste.
The demand for temperature-sensitive biologics is expected to grow at a CAGR of 8.3% through 2033, reaching an estimated value of $39.1bn, according to Growth Market Reports.
"We have aligned our investments with our Healthcare customers' specialised needs," said Kate Gutmann, EVP and President of International, Healthcare and Supply Chain Solutions at UPS.
Our global cross-dock facilities strengthen our end-to-end cold-chain capabilities to ensure critical treatments are delivered safely and reliably to patients around the world.
"This effort – and all of our work in healthcare logistics – extends from a deep understanding that we’re doing more than moving packages. We are helping patients access the medications and treatments they need."
All of the 27 facilities are compliant with IATA CEIV Pharma certification, an industry-recognised standard for pharmaceutical handling and quality.
"Biologics and personalised treatments are driving better, more targeted care for patients,” added John Bolla, President of UPS Healthcare.
These investments reflect our commitment to continue to align our leading end-to-end supply chain to protect innovative treatments and diagnostics, supporting better patient outcomes.
The new cross-dock expansion from UPS builds on a long-term investment in complex healthcare logistics, strengthened through acquisitions including Bomi Group, Frigo Trans and BPL in Europe and Andlauer Healthcare Group in North America.
The news also comes after UPS announced an expansion to its Incheon, Korea air hub to support fast-growing pharmaceutical trade flows, as South Korea imported nearly $9.7bn in pharmaceutical products in 2025.
