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The weekly newspaper for air cargo professionals No. 1,162
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10 JANUARY 2022
WHAT DOES 2022 HOLD?
NEW YEAR, NEW MAN Konstantin Vekshin has been appointed as chief executive officer of Volga-Dnepr Group
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ix years after Konstantin Vekshin returned to Volga-Dnepr Group to take leading positions in CargoLogicManagement and Volga-Dnepr UK in 2016, the industrry veteran has become the group’s chief executive officer. Vekshin first joined Volga-Dnepr Group in 1997 and developed his career from sales executive to chief commercial officer. Between 2013 and 2016, he held the positions of vice-president, charter and government division with Centurion Cargo Airlines and vice-president of air freight charters with Bertling Logistics. Last year, in a critical year for the industry with the challenges brought by the global pandemic, Vekshin took the unprecedented leadership for the entire sales organisation of Volga-Dnepr Group as chief commercial officer and introduced the changes with great potential beyond the existing COVID crisis. Significant development of the sales organisation has been recorded under Konstantin’s leadership including expansion of the strategic partnership network, centralisation of charter cargo operations function, synergy of the sales teams in order to implement the cargo supermarket concept as well as a new chapter in the ILS (integrated logistics service) platform’s development. Vekshin will be focused on unified operational management of the companies within the group and maintaining of operational efficiency of the group’s businesses.
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INSIDE
SWISSPORT EXTENDS FIJI AIRWAYS
SWISSPORT has extended its partnership with Fiji Airways in New Zealand, supporting the airline’s re-start of operations in Auckland, Wellington ... PAGE 2
QATAR AIRWAYS SUES AIRBUS
QATAR Airways has issued legal proceedings against Airbus in the Technology and Construction division of the High Court in London. “We have sadly ... PAGE 2 SAL LAUNCHES JEDDAH EXTENSION
SAL Saudi Logistics Services – a member of Saudi Arabian Airlines Corporation – has launched the extension of its new Jeddah Station ... PAGE 2
HACTL: 4 HONG KONG OSH AWARDS
HONG Kong Air Cargo Terminals Limited (Hactl) – Hong Kong’s largest independent air cargo handler – has won four awards in The 20th ... PAGE 4
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Qatar Airways sues Airbus
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QATAR Airways has issued legal proceedings against Airbus in the Technology and Construction division of the High Court in London. “We have sadly failed in all our attempts to reach a constructive solution with Airbus in relation to the accelerated surface degradation condition adversely impacting the Airbus A350 aircraft. Qatar
Airways has therefore been left with no alternative but to seek a rapid resolution of this dispute via the courts. Qatar Airways currently have 21 A350 aircraft grounded by the condition and the legal proceedings have been commenced to ensure that Airbus will now address our legitimate concerns without further delay.
“We strongly believe that Airbus must undertake a thorough investigation of this condition to conclusively establish its full root cause. Without a proper understanding of the root cause of the condition, it is not possible for Qatar Airways to establish whether any proposed repair solution will rectify the underlying condition.”
SAL launches Jeddah station extension SAL Saudi Logistics Services – a member of Saudi Arabian Airlines Corporation – has launched the extension of its Jeddah station. Chairman of the SAL Board, Fawaz AlFawaz, pointed out that the launch of the new extension comes in parallel with the National Industrial Development Programme (NIDLP) – one of Vision 2030’s most prominent programmes – aiming at transforming the Kingdom into a global logistics hub, contributing to a robust and diversified economy, sustaining the growth of the sector, and creating highly competitive investment opportunities. AlFawaz also highlighted that the launch realises the true ground handling potential of SAL where the company utilises its logistics expertise to provide more developed services and solutions in and out of airports and expertly serve the international markets to strengthen the connectivity of KSA ports with those of the entire globe. SAL’s CEO, Hesham Alhussayen, mentioned
the new extension spans over 61,000 sq m, adding more high-quality services to its existing wide range of ground handling services and including different state-of-the-art cargo facilities according to the industry’s highest international standards. He also added the new extension perfectly provides comprehensive import and export services, medical and food cold chain services, dangerous cargo services, and valuable cargo services under world-class security measures and ultramodern automated ground handling systems.
Swissport extends Fiji Airways partnership SWISSPORT has extended its partnership with Fiji Airways in New Zealand, supporting the airline’s re-start of operations in Auckland, Wellington and Christchurch. Fiji Airways has appointed Swissport as its New Zealand ground handling partner for an additional three years, providing full ramp and passenger services. Swissport supports daily flights from Auckland to Fiji (Nadi) utilising the Airbus A330 aircraft,
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three flights a week from Christchurch on its Boeing 737 Max, and two flights a week from Wellington utilising its Boeing 737 MAX. “We are delighted to extend our relationship with Fiji’s national carrier,” said Brad Moore, Swissport’s managing director Australasia. “We have supported Fiji Airways for several years in New Zealand and are honoured to be playing a bigger role in the re-start of flying
between the two countries, helping, reunite families and re-open the popular leisure market. “This extension further cements our reputation as the region’s highest quality and safest domestic and international ground handler.” Fiji Airways managing director and CEO Andre Viljoen said: ”We expect to ramp up our flights from Auckland, Christchurch and Wellington quite significantly.”
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Hactl wins four Hong Kong OSH Awards HONG Kong Air Cargo Terminals Limited (Hactl) – Hong Kong’s largest independent air cargo handler – has won four awards in The 20th Hong Kong Occupational Safety and Health Award scheme, organised by the Occupational Safety & Health Council (OSHC). Hactl achieved the top honours (Gold) in both the Safety Management System Award (Other Industries) and OSH Promotion Award categories. The former – regarded as the definitive accolade for corporate safety measures – recognised Hactl’s exceptional health and safety culture, which has achieved a 70% reduction in workplace accidents since 2014. The OSH Promotion Award meanwhile focused on Hactl’s “Safety Week 2020”, which upheld the company’s strong policy of educating staff and business partners in workplace safety. This important annual event continued in an online format in 2020, to overcome the challenges presented by COVID-19. Hactl also secured Silver in the OSH Enhancement Program Award, and Bronze in the Occupational Rehabilitation Award.
B&H WORLDWIDE NEW WEBSITE LAUNCHED
OSH Promotion Gold Award
B&H Worldwide, specialist aerospace logistics provider, has redesigned and upgraded its website to provide a more user-friendly experience for visitors. Among the new features are easier navigation and richer content. Customers still have direct access to all track and trace facilities through a link to FirstTrac, the company’s proprietary inventory management digital platform as well as comprehensive data about each of the company’s specialist services.
Publically recognised Hactl’s executive director and chief financial officer Amy Lam received the Safety Management System (Other Industries) Gold Award from OSHC chairman Dr Alan Chan Hoi-shou. The Gold Award for OSH Promotion was meanwhile presented to Hactl’s head of safety, sustainability and quality assurance, Benny Siu. Says Amy Lam: “We are delighted that Hactl’s strong OSH focus has been publicly recognised with no less than four successes in the Hong Kong Occupational Safety and Health Award. For us, the most gratifying is the Safety Management System Award, which demonstrates that our OSH measures exceed the standards set out in legislation, and that we have made OSH part of the DNA of every Hactl staff member. “As a caring employer, we will continue investing in staff wellbeing since nothing is more important. Our aim is to create a culture of constant safety vigilance in which staff take care of themselves and those around them.” Adds Benny Siu: “Safety promotion is one of the critical elements in conveying OSH messages to frontline staff and across the whole organisation. While “Safety Week 2020” could not take place in its usual live format due to social distancing requirements, we combined technology and staff creativity to stage the event online and interactively. Staff took part in online games and viewed humorous videos, using their smart phones. This resulted in record participation rates, beating all 6 previous events, and inspired others to adopt a similar online approach in their safety promotion.”
Envirotainer praises industry collaboration as it handles billionth vaccine THERE must be continued collaboration between pharmaceutical firms and the logistics industry. That is the call to arms from Envirotainer as it passes a major milestone in the shipment of COVID-19 vaccines. One billion have been carried in the company’s fleet of over 6,500 temperature-controlled containers. These are designed to maintain constant internal temperature, some for over a week, ensuring treatments arrive in perfect condition. With much of Europe introducing new curbs on freedoms to reduce cases, the whole sector needs to be ready to meet increased demand for vaccines and
boosters. Globally, just 56.9% of the world population has received one dose of a COVID19 vaccine. Niklas Adamsson, Envirotainer’s chief operating officer said: “We’re incredibly proud of handling a billion vaccines at a time when air freight has been restricted and demand has been sky high. This is thanks to the incredible collaboration we’ve been part of across the industry. “We’ve worked closely with our partners and customers, and now want to work even closer with efforts in the face of Omicron. It’s crucial we continue to work in unity across the cold-chain to get the next doses to patients.”
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Palmerola Intl Airport takes off in good Spirit AFTER five years of planning, developing and commissioning the new Honduran capital airport Palmerola International Airport, the first scheduled flights took off and the first passengers were welcomed last month . On December 11, the airport greeted Spirit Airlines as the first scheduled carrier with daily flights from Houston and four weekly flights from Miami. By now, a total of five airlines are operating international flights to Palmerola International Airport. United Airlines offers a daily service to Houston, American Airlines connects Palmerola twelve times per week with Miami and three times weekly with Dallas. Copa Airlines operates daily flights to Panama City and Avianca takes off daily to El Salvador and four times weekly to Guatemala City. Starting from January 2022, Spirit Airlines plans to add further flights to Ford Lauderdale
and AeroMexico intends to introduce flights to Mexico City.
Munich Airport’s involvement Munich Airport International (MAI), a 100% subsidiary of Munich Airport, has been providing consulting services in Honduras since 2015 for the planning and commissioning of the new Palmerola International Airport. MAI’s contracting partners in this project are the Honduran airport operator Palmerola International Airport S.A. (PIA) together with the Honduran construction company EMCO. “The airport represents a milestone for infrastructure development and thus improved connectivity and economic growth for the Comayagua region and all of Honduras,” comments Dr Ralph Gaffal, managing director MAI.
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PAYCARGO Capital has secured a substantial lending alliance with Evolve Bank & Trust, a leading financial and technology institution, allowing freight forwarders and beneficial cargo owners to apply for and receive credit at the point of paying freight costs. The partnership will immediately fund the “PayCargo Line of Credit” which eliminates financial delays that are contributing to the ongoing supply chain crisis. This solution allows freight forwarders and beneficial cargo owners to apply for and receive credit right at the point of paying freight costs. PayCargo expedites funding by removing the need for using third parties, excessive paperwork, and lengthy processes. PayCargo Capital is the exclusive lending partner to users of PayCargo, LLC’s successful payment platform for moving money and vital remittance information between payers and transportation-related vendors. PayCargo, LLC’s platform is the largest independent freight payments network, with over 67,000 active users remitting and receiving payments. Qualified freight forwarders, importers, and beneficial cargo owners in North America who use the PayCargo platform can extend vendor payments by thirty days using credit.
“PayCargo Capital offers credit terms on freight charges, previously available to only a few large companies,” said Philip J Philliou, chief executive officer (CEO), PayCargo Capital. “Clients tell us that our timely credit solution prevents expensive demurrage charges and speeds goods on their way to their final destination. Both air and ocean freight expenses are higher than in prior years and the need for funding is significant. In today’s environment, with Evolve as our lending partner, PayCargo Capital will grow stronger as a technology-enabled financing provider and help more businesses with their cash flow needs. “We are excited to partner with PayCargo
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Capital to serve the financial needs of the thousands of businesses that are involved in the movement of cargo,” said Scott Stafford, president and CEO of Evolve. “With trillions of dollars spent by American companies on air and ocean freight, port fees, warehouse fees, and a myriad of other transportation-related expenses, Evolve is eager to help fund such a large and dynamic space.”
Etihad to expand its cargo footprint in China ETIHAD Airways and Henan Province Airport Group, the parent company of the Zhengzhou Xinzheng Airport (CGO) — an important domestic aviation hub and the gateway to the central region of China — aim to establish a strategic partnership to strengthen aviation ties between the UAE and China. This follows the signing of a virtual Memorandum of Understanding (MOU) during the virtual “Zhengzhou Week” event hosted by Expo 2020 Dubai China Pavilion starting from December 27, 2021. The MOU contains plans for Etihad’s potential operation of regular cargo services between Abu Dhabi International Airport (AUH) and Zhengzhou Xinzheng International Airport (CGO) to create the “Air Silk Road”.
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PAYCARGO CAPITAL AND EVOLVE BANK & TRUST PARTNER TO HELP RELIEVE SUPPLY CHAIN CRISIS
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e-Commerce
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DHL’s Neo: e-Commerce g
Julian Neo, managing director of DHL Express Malaysia and Brunei sp
ACW: e-Commerce has boomed and express carriers have been at the forefront of this but for how long do you predict this boom will continue at the pace it is now? Do you think it will ever slow down? Neo: Increased consumer activity has been a recurring theme of e-Commerce, especially in these unprecedented times. Online comprised half of all retail sales in Asia Pacific, and is expected to rise by 10% to 61% by 2025. This growth can be attributed to social e-Commerce - the business of selling goods through social networks - largely driven in China and Southeast Asia. A 2020 study by Google revealed that Malaysia in particular recorded a 6% spike in e-Commerce Gross Merchandise Value (GMV) from the previous year to $11.4 billion
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while online-selling related enquiries saw a five-time jump. For us at DHL Express, we anticipate the boom to maintain its positive trajectory. The proliferation of e-Commerce has made up for, or in some cases more than compensated for, the economic downturn resulting from COVID-19. This means that the logistics sector is among those that will weather the crisis with resilience. Indeed, the total B2C e-Commerce volumes within our network increased in 2020 by approximately 40% compared to 2019. This paved the way for a total revenue of €19.1 billion (+11.9 % year-on-year) and EBIT of €2.7billion (+34.9%), marking the best financial result in our more than 50 years of history for the Express division of Deutsche Post DHL Group. Business purchasing should not be overlooked either. Even prior to the pandemic, global revenue on B2B e-Commerce sites and marketplaces had already increased by 18.2% to reach US$12.2 trillion in 2019, outpacing the market size of the B2C sector. These past two years can only accelerate that development, and the number is projected to hit $20.8 trillion by 2027. Even as restrictions ease, the shifting consumer behaviour that has emerged from this new normal is envisaged to persist. Millennials are now of age to be decision-makers in business environments, accounting for 73% of all procurement. Growing up with the internet and mobile phones, they are digitally native and more technologically oriented than their predecessors. They are more likely to avoid engaging with sales representatives early in the process, instead mimicking their personal shopping habits by conducting their own extensive research prior to buying commitment. Research by Gartner projects that by 2025, 80% of B2B sales interactions will occur through digital channels.
our teams become more productive.
ACW: Was DHL Express prepared for the sudden boom in e-Commerce?
ACW: What about the current capacity constraints in the air cargo industry, what has this meant for e-Commerce?
Neo: At DHL Express Malaysia, we have practices in place to ensure minimal disruptions during peak periods, and the same applies to this e-Commerce boom. Manpower-wise, we are served by a 1,500-strong workforce nationwide and hire additional associates to support delivery operations when the need arises. We further expand our capabilities by scheduling extra flights, extending pickup and drop off times, as well as imposing weight restrictions to control cargo space. Digitalisation has been part of the logistics conversation for years but reached a fever pitch throughout the pandemic. Fortunately, it has long been a top priority of our business. In fact, our parent company, Deutsche Post DHL Group, committed €2billion until 2025 to step up transformational initiatives designed to enhance customer and employee experience as well as improve operational performance across all divisions. Efforts are already underway to comprehensively modernise our IT systems, integrate new capabilities, and offer staff targeted training. Global Centres of Excellence are being established to centrally develop key technologies like data analytics, Internet of Things, and autonomous vehicles for logistics use. In Malaysia, we successfully rolled out our WhatsApp service, DHLontheGo, which allows shipment booking, tracking, and enquiry all through the messaging app. These have seen a warm welcome among our clientele, and we see them continue to be in demand well beyond the crisis. We have also deployed a new system called the Advanced Quality Control Centre (AQCC), which utilises the latest technologies in artificial intelligence, big data referencing and routing, as well as automated systems. AQCC provides us with the capability to monitor in real-time 100% of our shipments and movements in a highly efficient manner. Robotic Process Automation (RPA) has also helped us to streamline vital processes, automate time-consuming repetitive tasks, and help
Neo: The situation in the air freight market remains challenging in general. On one hand, we see high volumes and similarly high demand; on the other, limited handling capacities due to COVID-19 and infrastructural issues. DHL Express has risen to these challenges. We operate over 280 dedicated aircraft with 15 partner airlines on over 2,200 daily flights across more than 220 countries and territories. In particular, our Asia Pacific air network is supported by four main hubs - Central Asia Hub in Hong Kong, North Asia Hub in Shanghai, South Asia Hub in Singapore, and Bangkok Hublinking to 50 gateways in the region. We recently expanded our airfreight capacity to cater to rising intra-Asia demand and between Asia Pacific and the US. Our K-mile Asia flight will add over 200 tonnes of capacity weekly between Hong Kong and Bangkok; Air Hong Kong’s introduction of a sixth flight rotation enhances two routes with 1,200 tonnes of weekly total gross payload; while our joint venture cargo airline AeroLogic offers 610 tonnes of capacity with its six-time-a-week service from Hong Kong to Cincinnati. Throughout this period, DHL Express has demonstrated that we are a strong partner for our customers, even in the most unprecedented times. We have a robust network, capacities, and expertise in place to put the right solutions at the right time, even during a crisis. We are fully committed to leveraging all these assets for the benefit of our customers.
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ACW: How has the surge in e-Commerce demand affected your infrastructure and network? Neo: DHL is the only logistics company with the services and capabilities to link the entire e-Commerce supply chain. We are backed by a wide global network connecting us to over 220 countries and territories around the world. Our own Malaysian network encompasses six Gateways, 11 Service Centres, 137 Retail Outlets and Service Points, 347 vehicles, 73 weekly flights, four dedicated aircraft, and more than 1,500 employees that ensure we have comprehensive coverage. DHL Express is investing around €750 million from 2020 to 2022 to bolster its aviation network and ground infrastructure across Asia Pacific to support the unprecedented growth in shipment volume and address the ever-growing demand for time-definite express deliveries. In recent months, DHL Express has introduced several new dedicated flights powered by the new Boeing 737, 777 and Airbus A300. In Malaysia, we invested RM11.4 million to improve our lastmile delivery efficiency with new additions to our vehicle fleet. Processing, sorting, and distribution also received a boost with RM7.4 million going towards equipment overhaul nationwide and the refurbishment of 11 facilities. To cater to the growing needs of the communities we serve, our Seberang Perai (RM13 million) and Kuala Lumpur Gateway (RM198.7 million) locations moved to bigger premises that expand our shipment handling capacity and productivity. Through these upgrades, we ensure sustained operational excellence so that we can continue fulfilling our purpose of connecting people and improving lives.
ACW: How will DHL’s e-Commerce service offering develop as the sector grows? Neo: In business, there is no such thing as one-size-fits-all. DHL Express creates competitive advantages for our customers with end-to-end solutions tailored to their respective
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e growth is here to stay
nei speaks to ACW about the harnessing the beast of e-Commerce. needs and requirements, powered by our global network expertise and experience. Through our customer-centric logistics services, we can establish consistency and leverage best practices across the board so that our customers can focus on delivering value to their end customers. The pandemic has forced businesses to accelerate their digital transformation efforts. Those that are agile can seize opportunities to become more efficient, effective, and profitable through the ever-evolving landscape. DHL Express Malaysia has long played an active role as an enabler of growth within the local SME ecosystem. These past two years of COVID-19 have seen us launch specialised offerings that help expand our online footprint and increase speed to market overseas. Among them is Durian Express, which guarantees the next-day delivery of the fruit to Hong Kong and Singapore. This allows Malaysian durian merchants to tap into the soaring foreign appetite for the more than 100 varieties found here, especially the much-coveted Musang King. While one kilogram of the crowd favourite sells for between RM50 and RM70 domestically, the same amount retails for up to RM200 in Hong Kong. Dedicated products were also introduced for brands dealing in modest fashion as well as vintage clothing business.
course, we cannot go at it alone so we include our stakeholders in the process. Customers are provided with additional carbon reporting services that allow them to analyse their environmental footprint and manage their carbon emissions. We place a special focus on supporting SMEs to go international whose values reflect our own, and recently on boarded a company that offers sustainable, eco-friendly packaging. For us and our customers, these are very important steps in our decarbonisation journey and represent steps forward for the logistics industry as a whole.
ACW: An increase in e-Commerce will have extremely damaging effects on the environment. Do you think this growth is sustainable? How can it become more sustainable? Neo: The pervasiveness of e-Commerce has normalised the demand for purchases to be delivered in the quickest, cheapest, and most convenient method possible - translating to increases in packaging waste and carbon emissions. Despite this, sustainability now occupies a higher place in the customer agenda than ever before. Today’s consumers have a heightened sense of social and environmental awareness, which extends to their buying decisions. Many expect businesses to play a positive role in society and bear a bigger responsibility in driving positive change. As social media continues to proliferate, this call will only grow louder. As the world’s leading logistics provider, we are aware of our environmental accountability. As part of its Sustainability Roadmap announced earlier in March, our parent company Deutsche Post DHL Group has pledged to measures to reduce CO₂ emissions, in line with the overall target to invest €7 billion (approximately RM 33 billion) to achieve zero emissions by 2050. Globally, more than one million miles have been driven with electric vehicles, 86% of electricity usage is from renewable sources, numerous facilities have received environmental ISO certification, and over 70,000 employees have successfully become Certified GoGreen Specialists through DHL’s in-house environmental training programme. Our pursuit of carbon efficiency and green last-mile have also taken shape in Malaysia. On our way to clean logistics operations, the electrification of every transport mode plays a crucial role and will significantly contribute to our Group’s sustainability goal of zero emissions. We have therefore committed to electrifying 60% of our fleet by 2030. To this end, we entered into a MOU with a national energy provider, Tenaga Nasional Berhad (TNB), which involves the introduction of electric vans starting the first half of 2022. The partnership will extend beyond making deliveries more eco-friendly to include co-operation in zero carbon and cost reduction initiatives, encompassing energy-efficient equipment, building energy management systems, and rooftop solar panels. DHL Express is also assessing TNB’s current electricity supply chain and identifying opportunities for improvement. Of
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2022 cold chain predictions: Creating a new normal Adam Tetz, director of worldwide marketing at Peli BioThermal
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a large number of shipments were delayed, held at customs points or cancelled altogether. The impact of Brexit was further affected by the global shortage of shipping containers and lack of drivers to transport goods.
t this time last year, the world was eagerly anticipating 2021. COVID-19 vaccines delivered hope for normalcy and excitement grew over convenience-related changes to healthcare, work and more. But the pandemic had other plans. New COVID-19 variants emerged, supply chain issues deepened and much of the day-to-day still looks different than pre-pandemic.
Over time, exporting companies, shipping agents and logistics companies began to understand the nuances of paperwork required to enable shipments to the EU to take place without issue. This was a learning process for companies that hadn’t dealt with the complexities of customs clearance for decades. To enable this, companies recruited for new staff, which further slowed down the processes required.
The cold chain industry experienced rapid growth in 2020 and continues to experience both growth and change for the foreseeable future. The pandemic’s influence remains, which creates opportunities to innovate and better serve pharmaceutical and healthcare customers delivering medicine in new ways. This sets the stage for a few of our predictions this year.
It is still too early to draw concrete conclusions about the overall impact of Brexit on trade with the EU. The Office of National Statistics (ONS) noted survey data suggesting businesses’ trading activities were being held back by Brexit frictions, such as extra paperwork and higher transportation costs. However, the UK economy showed improvement during the course of the year. Shipments to the EU began to return to pre-Brexit levels as companies became more confident with the complexities of the new rules.
While COVID-19’s influence persists, we also see renewed interest in sustainability and the evolving impact of Brexit’s export regulations in the United Kingdom. These will also shape how the pharmaceutical and cold chain industries operate. Let’s take a look at what all of this means for 2022.
Outsourcing the cold chain
Further growth is expected into 2022, and with the general improvement with trading conditions as COVID-19 restrictions are relaxed, we can expect a surge in UK - EU trade during the course of the next year.
In our predictions last year, we anticipated that more pharmaceutical companies would outsource capabilities to contract manufacturing organisations (CMOs) and contract development and manufacturing organisations (CDMOs). Pharmaceutical companies already engage these organisations in manufacturing and development of therapies, but adding additional services allows pharmaceutical companies to focus valuable time and resources on areas where they have the most expertise. We did see a shift last year to CMOs and CDMOs adding additional services, like cold chain logistics. We expect to see outsourcing grow again this year. Offering end-to-end expertise will help reduce additional supply chain complexities by standardising more of the supply chain during a time when raw materials are scarce and transportation is unpredictable, necessitating dedicated and seasoned professional resources. Additionally, we expect companies not yet ready to fully outsource their supply chains to increase their use of services that make cold chain operations easier and eliminate the challenges associated with unforeseen circumstances. These include services like off-site conditioning of coolants or on-site conditioning with coolants inventoried to their unique needs.
Direct-to-patient and direct-from-patient Also on our list last year was a new focus on direct-to-patient and direct-from-patient care, including significant growth in home-based clinical trials. In December 2019, 38% of pharmaceutical and contract research organisations expected to engage in a high volume of virtual research trials with 48 percent of those expecting to run a trial with most activity conducted in participants’ homes. These numbers increased to 100 percent and 89 percent respectively in December 2020. Many research organisations initially piloted this new model of clinical trials with smaller Phase I and Phase II trials. In the past year, we saw organisations pilot fully home-based and hybrid
Sustainability initiatives move forward
clinical trials in Phase III trials. This year we expect to see trials using home-based care grow with continued focus on improving the experience for patients and physicians. Logistics remain a challenge, especially given the narrow timeframe for deliveries and pick up of biologics or sample materials. All timing must coordinate with homecare visits and ensure temperature-sensitive materials arrive at their final destination still within the required temperature range. Services like phlebotomy, drug administration and sample collection that require refrigeration will require cold chain solutions. We anticipate an ongoing drive toward solutions that require little training and are easy for home healthcare professionals and patients to operate. We should also see even more assessment and evaluation of the cold chain for home-based care in 2022.
Brexit runs smoothly Brexit, or the UK’s exit from the European Union (EU), officially began on January 31, 2020. However, nothing changed until a new trade deal was reached nearly one year later. Implemented in January 2021, the new deal outlined how the UK and EU would live, work and trade together. The most significant concern: new paperwork for export businesses. As new trade rules began, export businesses did in fact experience significant issues with increased paperwork. As a result,
Only a few short years ago, pharmaceutical manufacturers viewed supplier sustainability initiatives as a nice-to-have, but not a deciding factor in their decision to do business together. That shifted in 2020 with companies focusing on how they could impact the United Nations’ Sustainability Development Goals (SDGs), as well as building plans to execute and measure their efforts. What began as internal initiatives quickly turned to a focus on how vendor and supplier sustainability initiatives impact a company’s sustainability goals. Pharmaceutical companies soon required vendors like Peli BioThermal to demonstrate that temperature-controlled packaging and modes of transportation minimise negative effects on the environment. Additionally, vendors were also asked to provide tools that help pharmaceutical manufacturers measure their actual environmental impact so they can monitor and demonstrate reductions in carbon footprint and waste. We expect to see this trend continue in 2022. However, we also expect pharmaceutical companies to dig deeper into the supply chain. Vendors and suppliers like Peli BioThermal will be asked to also look at their supply chains and begin monitoring how their own vendors and suppliers contribute to their environmental impact. Each year brings hope and anticipation of new challenges. This upcoming year is no different. Though COVID-19 continues to influence supply chains, companies are learning to operate in an unpredictable world. Overall, we anticipate this year will bring more stability and renewed focus on pre-COVID-19 priorities.
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