UPS extends healthcare logistics lead with $48 million investment in temperature-controlled freight cross-dock facilities

UPS, the world’s No. 1 provider of complex healthcare logistics, today announced its $48 million investment in 27 temperature-controlled freight cross-dock facilities around the globe. Located in key U.S. and international markets, including Europe, Asia and the Americas, these facilities are optimized for speed and short-term storage between air and ground movements – all while maintaining specific temperature requirements. The announcement strengthens UPS’s global cold-chain network as demand grows for medicines requiring strict temperature ranges of 2 to 8 degrees Celsius, 15 to 25 degrees Celsius and frozen.

Industry demand for temperature-sensitive biologics is projected to expand at an 8.3% compound annual growth rate through 2033, reaching an estimated $39.1 billion, according to Growth Market Reports. Meeting this demand requires cold-chain expertise to maintain product quality and safety from manufacturing to patient.

“We have aligned our investments with our Healthcare customers’ specialized 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.”

Single Provider, Total Control: Integrated Freight Cross-Docks Reduce Risk

• 27 temperature-controlled freight cross-docks create seamless movement across transportation modes. All facilities are compliant with IATA CEIV Pharma certification, an industry-recognized standard for pharmaceutical handling and quality.

• A single integrated network eliminates handoffs between providers, reducing risk and increasing control.

• Greater accountability and real-time oversight protect high-value, temperature-sensitive therapies from excursion and disruption.

• 24/7/365 control tower proactively monitors shipments, flags risks and enables rapid intervention to keep critical products moving.

Rise of Advanced Therapies Accelerates Demand for Precision Cold-Chain Solutions

The rapidly growing biologics pipeline is increasing complexity across cold-chain logistics. According to PharmaSource, roughly one in three newly approved drugs today is a biologic more than 85% of those requiring temperature-controlled handling.

As therapies like cell and gene treatments, mRNA platforms and GLP-1 injectables come to market, healthcare supply chains are becoming more complex and risk-sensitive. Temperature excursions are a key driver of that risk, with cold-chain failures estimated to cost up to $35 billion annually and, according to WHO, contributing to up to 50% of global vaccine waste.

“Biologics and personalized 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.”

Acquisition to Advantage: Investments Are Scaling Complex Healthcare Logistics

UPS’s cross-dock expansion builds on a long-term investment in complex healthcare logistics, strengthened through acquisitions including Bomi Group, Frigo Trans and BPL in Europe and Andlauer Healthcare Group in North America. More recently, UPS expanded its Incheon, Korea air hub to support fast-growing pharmaceutical trade flows, as South Korea imported nearly $9.7 billion in pharmaceutical products in 2025, according to Observatory of Economic Complexity data.

The result is a more responsive supply chain that keeps high-value, time- and temperature-sensitive healthcare shipments moving seamlessly across air, ocean, ground and final mile. As demand grows, UPS’s integrated network is built to manage this complexity today and scale for what’s ahead.