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Cool Cargoes October 2015

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COOL CARGOES 24 THE JOURNAL OF COMMERCE www.joc.com OCTOBER 2015 The pharmaceutical industry's increasing reliance on ocean shipping is spawning new liability concerns By Lara L. Sowinski I T WASN'T SO much an announcement as an industry quake. After several years of realigning its warehousing and production facilities, AstraZeneca, one of the world's largest pharmaceutical companies, announced in early 2014 that it intended to shift the vast majority of its cold chain shipments from air to ocean. By the end of the year, it was moving more than half of its global shipments by sea, a dramatic change from 2010, when some 90 percent of its products moved by air. This year, the company reportedly aims to increase the oceangoing share of its shipments to around 70 percent. "AstraZeneca now sees ocean freight a s the mode of choice," sa id Julia n Wann, the pharmaceutical giant's global category leader for freight and logistics, as the changes were unveiled. Although he assured reporters and industry analysts that air freight would still be a necessity within AstraZeneca's supply chain, it was clear the company had yielded to the undeniable seduction of lower transportation costs, enhanced reefer capabilities, an opportunity for reduced carbon footprint and diminished security concerns. Just weeks later, Yusen Logistics signed a deal to transport AstraZeneca's prescription drugs from Europe to Aus- RX WITH SIDE EFFECTS

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