Increased dominance in IV fluid logistics... CJ Logistics teams up with JW JoongWai Pharmaceutical

Market Share No.1 Order Volume
Expectations Rise for Growth Benefits in Infusion Demand

CJ Logistics is expanding its intravenous (IV) fluid logistics business, known as the "rice of pharmaceuticals," in partnership with JW Pharmaceutical.

On the 22nd, CJ Logistics announced that it had secured a logistics contract to deliver IV fluids produced by JW Pharmaceutical to hospitals, clinics, and public health centers nationwide. The annual order volume reaches 11 million boxes. JW Pharmaceutical holds the number one position in the domestic IV fluid market with about a 50% market share. As a result, CJ Logistics will handle 70% of the IV fluid distribution volume, further strengthening its market dominance.

CJ Logistics explained that its accumulated experience and technological capabilities in pharmaceutical delivery, such as transporting 2 million boxes of flu vaccines, were key to winning the contract. During the 2020 flu vaccine ambient temperature exposure incident, CJ Logistics took over vaccine delivery from the existing distributor, demonstrating its 'cold chain' capabilities (maintaining appropriate temperatures during storage and transport until final delivery). In July last year, it also obtained the 'Pharmaceutical Air Transport Quality Certification' from the International Air Transport Association (IATA), verifying its expertise and excellence in pharmaceutical air transport.

Currently, CJ Logistics operates a healthcare hub center secured at the Dongtan logistics center, along with 11 regional base centers in cities including Busan, Gwangju, and Daejeon, and a fleet of over 200 dedicated pharmaceutical vehicles. Based on this, it has established a next-day delivery system. Additionally, it manages real-time information such as temperature and humidity control in logistics centers and vehicle operation records through its independently developed temperature and humidity control solution, 'Cool Guardian.'

CJ Logistics also expects to benefit from the growth of the IV fluid market. According to the pharmaceutical industry, the domestic IV fluid market size is estimated to increase from 433 billion KRW in 2021 to 525 billion KRW in 2025. With ongoing aging population and flu outbreaks, IV fluid specialist companies are planning facility expansions and new product launches. The increase in hospital stays as COVID-19 subsides is also driving up demand for IV fluids.

Ahn Jae-ho, Head of Sales at CJ Logistics, said, "Customer satisfaction and trust stemming from our cold chain capabilities and infrastructure have led to this contract success," adding, "We will do our best to ensure that IV fluids are safely delivered to the public."

A special container holding pharmaceuticals is being loaded onto a CJ Logistics dedicated pharmaceutical vehicle. (Photo by CJ Logistics)