Temperature controlled shipping demand continues to grow

What’s behind the boom in cold-chain shipping

The pharmaceutical sector is seeing a surge in temperature controlled shipping, driven by rapid growth in specialty drugs that must move within tight temperature ranges, often under strict regulatory oversight. At the same time, distribution models are shifting toward more complex, time-sensitive networks. The effects are felt from the first to the last mile of the supply chain.

New drugs, new requirements

• GLP-1 drugs such as semaglutide (Ozempic, Wegovy) and tirzepatide (Mounjaro, Zepbound) currently account for roughly 8% of all U.S. prescriptions, and the number is growing. Prescribed to manage both diabetes and obesity, these drugs require a supply chain that maintains a temperature between 35.6°F and 46.4°F.
• Another demand driver is the growth in biopharmaceutical and vaccine distributions. Many advanced therapies, including gene therapies, CAR-T cancer treatments and some mRNA vaccines, require specialized ultra-low temperature logistics that maintain the product’s stability during transport.

The logistics takeaway

• Internet-of-Things (IoT) sensors increase the safety and integrity of pharmaceutical products during both transit and storage. IoT technology is used to monitor temperature, but also additional variables, including humidity, light exposure, vibration, dwell times, and tampering attempts, gradually moving cold chains to full-shipment intelligence.
• Environmental sustainability is becoming a more widespread concern in temperature controlled pharmaceutical supply chains. Innovations have focused on reusable and light-weight packaging, and energy-efficient refrigeration across transportation modes.
• Last-mile delivery is growing in importance. Micro-fulfillment centers near urban hubs enhance speed of delivery, and help reduce out-of-compliance products, ultimately improving patient outcomes.

U.S. administration expands TrumpRx

The White House has announced a significant expansion of TrumpRx.gov, a federal website designed to improve price transparency and help consumers identify lower-cost prescription drug options.

What’s new

• The website will now feature more than 600 generic medications, allowing consumers to compare competitive cash prices outside traditional insurance pathways.
• Patients can compare pricing across multiple channels, including local pharmacies and home delivery options offered by private pharmacy programs. Discounts from platforms such as GoodRx, Amazon Pharmacy, and Cost Plus Drugs are now integrated into the site.
• Generic drug pricing is presented separately from discounted brand medications that are part of the administration’s prior Most-Favored-Nation (MFN) pricing agreements.
• The platform does not include certain categories of drugs, including controlled substances, therapies requiring FDA risk management programs, and medications not typically available through direct-to-consumer channels.
• By aggregating pricing and discount programs in one place, the site aims to increase consumer awareness of available savings options, particularly for patients paying out of pocket, and drive greater competition among pharmacy discount providers.

The logistics takeaway

• Expanded access to discounted generics could increase out-of-pocket purchasing behavior, particularly among uninsured or high-deductible patients, potentially shifting demand toward direct-to-consumer fulfillment channels and increasing the need for last-mile pharmacy fulfillment and small-parcel logistics solutions.

Shippers may be impacted by Supreme Court decision on trucking accidents

The U.S. Supreme Court’s recent decision in Montgomery v. Caribe Transport clarifies a legal issue for the freight industry. The Court ruled that accident-liability lawsuits against brokers may proceed under state law. While not explicit, the Court also appeared to suggest that shippers, too, may be liable under state law if a truck hauling their freight gets in an accident.

This introduces new complexity for shippers, who may face increased litigation exposure tied to how they select and vet trucking companies. While federal safety oversight remains in place, the addition of state-level liability is expected to increase compliance demands, legal costs, and insurance premiums.

Shippers should stay in close contact with their logistics providers to evaluate how the changing landscape may affect their transportation choices.

Taiwan Section 232 tariffs set at 15%

The United States and Taiwan have finalized a trade deal that sets a 15% cap on Section 232 tariffs on goods such as wood, aluminum, and copper. The tariffs are retroactive to May 1. The deal excludes generic pharmaceuticals, their ingredients, and some natural resources necessary to produce them.

For more details, see the Trade Policy & Customs section of this report. 

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