Last Year, Global Pharmaceutical Cold Chain Market Reached 18 Trillion Won
"Expertise and Know-How Essential"
[Asia Economy Reporter Yu Je-hoon] As the development of vaccines for the novel coronavirus infection (COVID-19) progresses, national airlines are taking full-scale measures, such as forming dedicated teams for transportation.
According to the industry on the 11th, Korean Air recently formed a dedicated task force (TF) within its cargo business division to prepare for all aspects of vaccine transportation. This is a proactive measure in anticipation of a surge in related demand once the COVID-19 vaccine development is completed.
Korean Air currently has refrigerated and frozen facilities (1,292㎡) at the cargo terminal in Incheon Airport that can accommodate about 100 tons of cargo. In addition, it plans to secure an additional 1,872㎡ of fresh cargo storage facilities at Terminal 2 next year.
Asiana Airlines has also formed a related TF and is identifying the status of special warehouses for vaccine storage at its overseas branches. Asiana Airlines currently has an 850㎡ temperature-controlled frozen warehouse at Incheon Airport.
The reason national airlines have started preparations for transporting vaccines that have not yet been developed is due to the expected surge in demand. According to the industry, about 10 billion doses of COVID-19 vaccines will be needed worldwide, and considering quality maintenance and urgency, air transportation is expected to be suitable. The International Air Transport Association (IATA) has estimated that about 8,000 large cargo aircraft such as B747s will be needed for global vaccine transportation.
In particular, vaccines generally need to be transported and stored at temperatures between 2 to 8 degrees Celsius. Some COVID-19 vaccines currently under development require even more stringent conditions depending on the type. According to foreign media, the COVID-19 vaccine developed by the U.S. pharmaceutical company Moderna must be transported and stored at -20 degrees Celsius, and the vaccine developed by Pfizer must be transported and stored at temperatures below -70 degrees Celsius. Considering recent controversies over the efficacy of flu vaccines transported outside the standard temperature range, airlines need to prepare thoroughly.
The market outlook is also positive. According to Pharmaceutical Commerce, a U.S. pharmaceutical media outlet, last year the global logistics cost for the bio and pharmaceutical sector was about $88 billion (approximately 102 trillion KRW), of which cold chain (refrigerated and frozen) logistics costs amounted to $15.7 billion (approximately 18 trillion KRW). For the airline industry, which has seen a sharp decline in passenger demand due to COVID-19, this is a market full of expectations.
A Korean Air official said, "Due to the nature of cargo that requires maintaining standard temperatures, vaccine transportation is an area that requires the airline's expertise and know-how," adding, "As of last year, pharmaceuticals and fresh food accounted for 10% of the total annual cargo volume, accumulating abundant transportation experience and know-how."
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