UPS invests $48 million to expand global cold chain network

UPS has announced a $48 million investment in 27 temperature-controlled freight cross-dock facilities across key markets in the United States, Europe, Asia and the Americas, expanding its healthcare logistics network as demand for temperature-sensitive medicines continues to rise.

The facilities are designed to support the movement of pharmaceutical products requiring strict temperature controls, including medicines transported at 2 to 8 degrees Celsius, 15 to 25 degrees Celsius and frozen conditions. UPS said the sites are optimised for rapid transfers and short-term storage between air and ground transportation while maintaining required temperature ranges throughout the process.

The investment comes as the global market for temperature-sensitive biologics continues to expand. Citing Growth Market Reports, UPS said the sector is expected to grow at a compound annual growth rate of 8.3% through 2033, reaching an estimated value of $39.1 billion. The company said maintaining product integrity and safety throughout the supply chain is becoming increasingly important as healthcare manufacturers develop more advanced therapies.

“We have aligned our investments with our Healthcare customers’ specialised needs. “Our global cross-dock facilities strengthen our end-to-end cold-chain capabilities to ensure critical treatments are delivered safely and reliably to patients around the world,” said Kate Gutmann, EVP and President of International Healthcare and Supply Chain Solutions at UPS. “This effort—and all of our work in healthcare logistics—extends from a deep understanding that we’re doing more than moving packages. We are helping patients access the medications and treatments they need.”

According to UPS, all 27 cross-dock facilities comply with the International Air Transport Association’s CEIV Pharma certification standards, which govern pharmaceutical handling and quality. The company said the facilities are integrated into a single logistics network, reducing the need for transfers between multiple service providers and providing greater visibility and control over shipments.

UPS said the network is supported by a 24/7 control tower that monitors shipments, identifies risks and enables intervention when disruptions threaten the movement of healthcare products. The company noted that enhanced oversight is particularly important for high-value therapies that are sensitive to temperature fluctuations.

The company also highlighted changes in the pharmaceutical industry that are increasing the complexity of healthcare supply chains. According to PharmaSource, roughly one in three newly approved medicines is now a biologic, with more than 85% requiring temperature-controlled handling. UPS said the growth of cell and gene therapies, mRNA-based treatments and GLP-1 injectables is driving demand for logistics systems capable of managing increasingly specialised products.

Cold-chain failures remain a significant challenge for the healthcare sector. UPS cited estimates indicating that temperature-control failures cost the industry up to $35 billion annually. Data from the World Health Organisation suggests that such failures contribute to as much as 50% of global vaccine waste.

“Biologics and personalised treatments are driving better, more targeted care for patients,” said John Bolla, President of UPS Healthcare. “These investments reflect our commitment to continue to align our leading end-to-end supply chain to protect innovative treatments and diagnostics, supporting better patient outcomes.”

The latest expansion builds on UPS’s broader strategy to strengthen its position in healthcare logistics through infrastructure investments and acquisitions. Recently, the company has acquired Bomi Group, Frigo Trans and BPL in Europe, as well as Andlauer Healthcare Group in North America, expanding its capabilities in pharmaceutical transportation and distribution.

UPS has also invested in its air cargo infrastructure. The company recently expanded its air hub in Incheon, South Korea, to support pharmaceutical trade flows. According to Observatory of Economic Complexity data cited by UPS, South Korea imported nearly $9.7 billion worth of pharmaceutical products in 2025.

The company said its integrated healthcare network now supports the movement of time- and temperature-sensitive products across air, ocean, ground and last-mile transportation modes. As demand for advanced therapies continues to increase, UPS said the expanded cross-dock network is intended to provide the capacity and operational control needed to manage future growth in the healthcare sector.