Unitrans Life Sciences Logistics Newsletter | Edition 4 | April 22, 2015
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In Edition 4:
Coldchain Comments
Industry, Carrier and Service updates
Security Updates
Compliance Corner

Links of the Week




Coldchain Comments

C-Safe recently opened a new satellite service center in Seattle, WA. On hand from Unitrans were some of our Pharma sales and service colleagues: Samantha Rosales (SEA), Angie Martinez (SFO) and Soner Aktas (SEA Branch Manager).

Continued growth is the forecast for pharmaceutical coldchain products. "Various market projections show that overall pharma sales will rise by roughly 5% annually to 2019, while cold chain product sales will rise by around 9% per year," says Nicholas Basta, editor in chief at Pharmaceutical Commerce.

Industry, Carrier and Service updates:

AIRFREIGHT: FedEx has put a hold on their late March announcement, in which they notified some of their SmartPost shippers that SmartPost (for less than 1lb rates) would receive a pass through cost increase on April 27, 2015. Projected USPS postage increases were the basis for the cost increase that would've been effective on April 26. However, on March 27th, USPS postponed its increase, and FedEx followed suit. This cost increase would have only impacted the shippers who use the ounce based SmartPost, and the increase would have been dependent on the contractual rate cap. At this time, it is not known if and when USPS will increase their rates, however it is expected that FedEx will apply an increase to follow USPS. We wouldn't be surprised if UPS follows with a similar cost increase for its SurePost service.

FedEx SmartPost and UPS SurePost are the lower cost options for parcel with no delivery time commit. The final mile delivery is performed by USPS in most cases.

2015 has been a hard year for parcel shippers. The dimensional weight rule change to Ground and SurePost services, the general rate increase of 2015, adjustment of the fuel indices, and now a possible second increase to the SmartPost rates in a year will hit parcel shippers' bottom lines.

Delta Airlines announced they will allow the carriage of the Envirotainer™ RKN e1 container with effect from April 15th, 2015.

A quick follow up item related to our last issue which included an IATA Pharma Industry initiative known as CEIV promises improved handling against recognized industry standards.

American Carriers continue to fight alleged unfair subsidies given to the Gulf's carriers: Etihad Airways, Quatar Airways and Emirates. At issue: fuel-hedging loss subsidies, artificially low airport charges and non-unionized labor forces.

SEA FREIGHT: From World Maritime News we learned Hapag-Lloyd has ordered 5 10,500 TEU container ships to be deployed primarily on South American routes. The new ships will support increasing demand for perishable goods such as fruit, vegetables, meat, fish and pharmaceutical products.

Suez Canal expansion combines Dutch, Belgian and Arab cooperation. The assignment: The consortium have until August 5, 2015 to dredge some 180 million cubic meters.

TRUCKING:In our first newsletter issue, we featured a blurb on driverless trucks of the future. While that future is not as close as the article portrayed (who wants a driverless 18 wheeler bearing down on them in traffic anyway?), this article from Trucking info discusses real time data connectivity and technology enhancements in use today.

In a move consolidating the activities involved with driver recruitment, TransForce has acquired DTS.

Pharma Blockbusters Nearing the Precipice - Patent Cliff Three drugs (Humira, Remicade and Enbrel are all primarily prescribed for Rheumatoid Arthritis) facing significant headwinds.

(source FT, 9th April 2015)

China is on its way to becoming the 2nd largest pharma market worldwide as pharmaceutical sales are forecast to exceed $300 billion by 2020. In this featured blog by Base Case, author Simon Wentworth explains the drivers behind China growth and strategy.

BIOPHARMA REPORTER is monitoring a move by Ireland to remain competitive with Pharma/Biopharma manufacturing centers Singapore and Puerto Rico, seems Ireland has announced additional grants to attract and support continued Pharma industry investment.

Security News

From our friends at the Pharmaceutical Cargo Security Coalition with thanks to Chuck Forsaith for sharing - The Indian government has introduced controversial new serialization and reporting requirements for pharmaceutical exports. Pharma exporters have just three months - until June 30, 2015 - to comply with the revisions, according to an April 1 notice from India's Directorate General of Foreign Trade (DGFT). See the Securing Industry article.

The Coalition of New England Companies For Trade (CONECT) will be conducting a webinar in June entitled "Cargo Risk & Loss". One of the presenters will be PCSC Member John Tabor of 7P Solutions. To register for the event click here.

FDA: Counterfeit cases of Allergan's BOTOX and Gilead's VIREAD have been uncovered in the supply chain.

Compliance Corner: NECC Tragedy - inside Look at what happened and how

Newsweek columnist Kurt Eichenwald in their April 16th edition, entitled The Killer Pharmacy, takes a behind the scenes look at events surrounding the bacterial meningitis outbreak linked to the New England Compounding Center. A stark reminder of the importance of quality and compliance and the cost in human lives when things go wrong.

Questions?  Comments? Ideas? We’d love to hear from you @ dave.janzow@unitrans-us.com




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