Express carriers have an edge in delivering Pfizer COVID vaccine

With cargo capacity under pressure for combination carriers and ACMI operators, the large networks of express carriers like UPS, FedEx and DHL make the companies likely candidates to transport early shipments of the COVID-19 vaccine announced this week by the U.S.-based pharmaceutical company Pfizer in partnership with German biotechnology company BioNTech SE. [caption id="attachment_87649" align="alignright" width="450"] UPS Worldport in Kentucky. Photo courtesy of UPS.[/caption] Multiple operators and air cargo stakeholders including Emirates SkyCargo , Korean Air and Air France-KLM are vying for an opportunity to help put an end to the pandemic. However, based on Pfizer’s initial production plans, express carriers are in a better position to haul vaccines — primarily because of the scale of their end-to-end networks. Pfizer, which has production facilities in Kalamazoo, Mich., and Puurs, Belgium, plans to truck vaccines to nearby airports for global distribution. Transporting nearly 8 million doses per day would require space on about twenty flights, according the Wall Street Journal. A mix of domestic and international flights to deliver the vaccines is expected due to global requirements for it. Express carriers using their own fleets or ACMI-leased capacity are positioned to accommodate the gamut of flight requirements. Although ACMI operators could end up carrying vaccines on behalf of express carriers using integrator flight numbers, it’s less likely they’ll operate flights directly for pharmaceutical companies in the early days of vaccine availability. Most operators in this segment have “very little availability” when it comes to spare capacity, said Ned Wallace, president of Wallace Air Cargo Group, which manages worldwide scheduled and charter marketing and sales for Kalitta Air — a t least in the near future . Carriers such as Kalitta, Atlas Air, National Airlines and Western Global Airlines have increased flying for a range of customers, including the integrators. The airfreight industry is also approaching its busiest time of year with the upcoming holiday season, and massive reductions in passenger flights have left global cargo capacity down by more than 25% year over year as of September, according to the International Air Transport Association (IATA). However, express operators have invested significant resources into expanding their networks and fleets to support distribution for growing e-commerce demand, which has served them well in providing capacity in the current COVID-impacted market. DHL Express’ Chet Paul, senior vice president, commercial for the U.S., noted in a media call today that owning its own facilities and fleet has benefited DHL’s operations during the difficult months of 2020, and that more expansions are in the works, including the addition of two 777 freighters. While UPS declined to comment on the Pfizer vaccine, a spokesperson for the company told Air Cargo World that UPS is “preparing” its network to “help deliver in support of urgent, lifesaving operations.” In August, UPS unveiled plans to construct two ultra-low temperature freezer farms capable of housing up to 48,000 vials each near air hubs in the United States and in the Netherlands; they will be able to accommodate vaccines with extreme temperature requirements of as low as -80 degrees Celsius. FedEx said its network is “well positioned to handle these shipments with our temperature-control solutions, real-time monitoring capabilities and a dedicated healthcare team to support the storage, customs brokerage and express transportation of vaccines and bioscience shipments around the world,” in a statement to Air Cargo World . The operator regularly transports vaccines, including the annual flu vaccine, and has more than 90 cold-chain facilities around the world. The express carrier is also currently expanding its cold-chain capabilities for vaccine distribution, “exploring a combination of solutions including stationary freezers, temperature-controlled ocean containers and refrigerated trailers,” according to the spokesperson. Pfizer and BioNTech are currently preparing safety and manufacturing data to submit to the U.S. Food and Drug Administration (FDA) for regulatory approval. The companies expect to produce up to 50 million doses through the remainder of 2020, and up to 1.3 billion doses next year. The Pfizer vaccine may be among the first, but multiple vaccine candidates are showing promise in late-stage trials. Distribution on a global scale is still expected to require participation from 3PLs, and non-express operators, according to Matt Castle, VP of global forwarding products and services of C.H. Robinson.

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Express carriers have an edge in delivering Pfizer COVID vaccine

EU gives green light to trigger $4 billion tariff strike on US

High airfreight rates help DHL to strong Q3 profit

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