UPS Invests $48 Million to Expand Cold Chain Network Across Asia, Europe and the Americas
UPS is investing $48 million to expand its cold chain logistics network across Asia, Europe and the Americas, adding temperature-controlled facilities to support growing demand for pharmaceuticals and biologics.
UPS is investing $48 million to expand its global healthcare logistics network, adding temperature-controlled facilities across Asia, Europe and the Americas. Once completed, the network will comprise 27 dedicated cold-chain facilities designed to support the growing demand for pharmaceuticals that require strict temperature control throughout the supply chain. The investment is aimed at strengthening UPS’s end-to-end cold-chain capabilities, ensuring the safe and reliable movement of critical medicines and therapies worldwide. “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,” saidKate Gutmann, 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. ”A key driver behind the expansion is the rapid growth in demand for temperature-sensitive medicines, including blockbuster weight-loss drugs such as Novo Nordisk’s Wegovy and Ozempic, both of which require refrigerated transportation and storage. According to Growth Market Reports, the global market for temperature-sensitive biologics is expected to grow at a compound annual growth rate (CAGR) of 8. 3%, reaching approximately $39. 1 billion by 2033. Maintaining an uninterrupted cold chain is critical, as even minor temperature deviations can compromise product integrity. The World Health Organization estimates that nearly half of all vaccines produced globally are lost each year due to supply chain and temperature-control failures. UPS has also been expanding its healthcare logistics footprint through strategic acquisitions. Earlier this year, the company acquired Andlauer Healthcare Group, a Canadian specialist in refrigerated pharmaceutical logistics, in a cash deal valued at $1. 6 billion. Temperature-controlled ground transportation accounts for nearly 60% of Andlauer’s revenue. Healthcare logistics has become a central component of UPS’s strategy to shift toward higher-margin businesses. During the company’s first-quarter 2026 earnings call, CEO Carol Tomé noted that UPS has increased its share of the healthcare logistics market every year since 2021. She also highlighted that the healthcare division surpassed $3 billion in quarterly revenue for the first time during the first quarter of 2026. UPS reported first-quarter 2026 revenue of $21. 2 billion. However, net income declined to $864 million from $1. 19 billion in the same period last year, reflecting ongoing restructuring efforts within its domestic delivery network. Tomé described the transformation as a strategic move toward higher-value services, with healthcare logistics at its core. “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,” said John Bolla, president of UPS Healthcare.