United Parcel Service (UPS) vehicles are parked at a UPS drop yard on Oct. 28, 2025 in Vernon, California.
Mario Tama | Getty Photographs
United Parcel Service is investing $48 million in 27 temperature‑managed services because the trade sees a growth in healthcare logistics, CNBC has discovered solely.
The services, situated throughout the Americas, Europe and Asia, are optimized for transferring round shipments that must be stored at sure temperatures. The corporate mentioned the funding will assist it keep forward of a growth in medicines and prescribed drugs — like some GLP-1s — that need to be stored at sure temperatures by enhancing pace and end-to-end chain of custody.
“Our international cross-dock services strengthen our end-to-end cold-chain capabilities to make sure essential remedies are delivered safely and reliably to sufferers world wide,” mentioned Kate Gutmann, UPS’ president of worldwide, healthcare and provide chain options. “This effort – and all of our work in healthcare logistics – extends from a deep understanding that we’re doing greater than transferring packages.”
The demand for temperature-sensitive biologics is projected to develop at an 8.3% compound annual development fee by means of 2033 and attain a market worth of roughly $39.1 billion, in keeping with Progress Market Stories. Many new medicines are required to be saved at particular temperatures to keep up efficacy, UPS mentioned, making healthcare logistics extra essential than earlier than.
In line with the World Well being Group, as much as 50% of world vaccines are wasted yearly, with a good portion of that coming from cold-chain storage points.
“These investments mirror our dedication to proceed to align our main end-to-end provide chain to guard revolutionary remedies and diagnostics, supporting higher affected person outcomes,” UPS Healthcare President John Bolla mentioned in an announcement.
UPS’ transfer comes because the trade total has seen rising investments within the house, particularly with the meteoric rise of GLP-1 medicine. Medicines like Novo Nordisk‘s Wegovy and Ozempic require strict refrigeration and temperature management throughout transit. A November KFF ballot discovered that 1 in 8 Individuals are taking GLP-1s.
UPS CEO Carol Tomé mentioned on the corporate’s first-quarter earnings name in April that healthcare stays one of many firm’s high priorities and largest areas of development.
“Our international healthcare portfolio has gained market share yearly since 2021,” she mentioned on the decision. “And within the first quarter of this 12 months, we generated our first $3 billion healthcare income quarter ever, with all three of our segments delivering year-over-year income development.”
Tomé added that UPS is dedicated to persevering with to “lean into that house in a significant approach.”