Freight Challenges in Life Sciences: 2025 Outlook

Pharmaceutical and life sciences supply chains continue to face turbulence as we head into 2025. Ongoing global disruptions, high transportation costs, and capacity constraints are challenging the delivery of medicines and research materials worldwide. In this section, we analyze the current freight and logistics challenges affecting the life sciences sector and explore how partnering with third-party logistics (3PL) providers and strategic planning can help mitigate risks. We’ll also provide recommendations for life science companies to ensure resilient and cost-effective logistics in 2025.

Ongoing Supply Chain Disruptions and Rising Freight Costs

The past few years have been marked by unprecedented supply chain upheavals, and many of those issues persist. Global disruptions – from geopolitical conflicts to natural events – continue to impact shipping lanes. For example, late 2023 saw slowdowns in the Panama Canal and Red Sea routes due to drought and regional unrest, respectively, which cast a shadow over efficient movement of goods​ (premierinc.com). Additionally, the war in Ukraine and other international conflicts have kept certain air corridors closed or rerouted, causing longer transit times and higher fuel usage for flights.

These disruptions contribute to volatile fuel and transportation pricing. In 2024, fuel prices spiked at times due to global uncertainty, directly affecting air and ocean freight rates​ (premierinc.com). Major freight carriers responded with rate increases. For instance, in mid-2024 carriers announced general rate increases to cope with higher costs (labor, fuel, etc.)​ (chrobinson.com). Many life science companies are seeing their logistics budgets strained as freight costs remain above pre-pandemic levels. Even as ocean container prices cooled from the extreme highs of 2021, they stabilized at a new normal that is still higher than 2019. Air freight, crucial for high-value or perishable pharma shipments, remains expensive due to limited cargo space (passenger travel hasn’t fully restored belly cargo capacity to pre-2020 levels, and dedicated freighters are in high demand).

Labor challenges also play a role. Though U.S. port labor disputes were resolved in 2023, there are still driver shortages in trucking and warehouse staffing challenges in many regions. A shortage of skilled workers means delays in pick-ups, deliveries, and longer turnaround times at ports and airports. This hits life sciences hard when timely delivery of products like radiopharmaceuticals or clinical trial materials is non-negotiable.

According to a recent industry survey, 92% of pharma supply chain professionals feel that supply chain risk has increased in the past two years​ (biopharmadive.com). This heightened risk perception is due to the confluence of issues: pandemic aftershocks, capacity imbalances, trade policy uncertainties, and climate-related disruptions (like extreme weather events impacting logistics).

All these factors translate to a challenging freight environment for life science companies. They face:

• Longer lead times: needing to plan shipments further in advance to account for potential delays.
• Higher safety stock or inventory: carrying more inventory as a buffer, which ties up capital, because transit times are less reliable.
• Greater freight spend: stretching budgets or forcing difficult choices on shipping modes (e.g., using slower ocean freight for cost savings vs. faster air for reliability).
• Risk of stockouts or supply interruptions: if a shipment is delayed and no backup is available, patients could face drug shortages. (Indeed, 2023 saw record levels of drug shortages in the U.S., partly due to supply chain issues).

Yet, amid these challenges, companies are adapting and finding ways to cope.

3PL Solutions and Optimization in Pharmaceutical Shipping

Many pharma and biotech companies are turning to third-party logistics (3PL) providers that specialize in healthcare to navigate complexity. 3PLs can offer tailored solutions and economies of scale. Here’s how 3PL partnerships and other strategies are optimizing pharmaceutical shipping:

• Global Network and Capacity Access: Large 3PLs in life sciences (e.g., DHL Life Sciences, FedEx HealthCare, UPS Healthcare, Kuehne+Nagel, etc.) have global carrier contracts and volume leverage. They can often secure cargo space even when capacity is tight. For instance, during the pandemic, some 3PLs chartered dedicated flights for medical cargo. In the current market, a 3PL can bundle shipments from multiple clients to negotiate better airfreight rates or prioritize loading with carriers. This helps pharma companies ensure their products get on the plane or vessel, even during peak periods.
• Temperature-Controlled Expertise: Life science 3PLs offer specialized services like validated cold chain shipping containers, thermal packaging, and lane risk assessments for temperature excursions. By outsourcing to an expert, companies ensure their temperature-sensitive products are handled correctly throughout transit. 3PLs also manage cold chain warehousing in strategic locations, so products can be staged near end markets to shorten the final delivery leg (reducing risk of temperature deviations or delays).
• Advanced Technology and Visibility: Top 3PLs provide shipment visibility platforms that track shipments in real time, often including condition monitoring. They use control towers to manage exceptions. As one logistics leader noted, the use of technology “made a massive leap” in response to recent challenges, with solutions like automation and data-driven tracking coming to the fore​ (pharmaceuticalcommerce.com). Such visibility means if a shipment is delayed or diverted, the 3PL and company know immediately and can execute contingency plans (like redirecting a package, informing stakeholders, etc.). Additionally, many 3PLs have adopted AI for route optimization – suggesting the most efficient routing combinations to balance cost and speed.
• Consolidation and Efficient Routing: 3PLs often consolidate shipments from multiple clients going to the same region, filling a temperature-controlled container or truck. This reduces wasted space and lowers cost per unit. For smaller biotech companies that might not ship full pallets regularly, consolidation through a 3PL is a cost-saving lifeline. Optimized routing also means using hubs effectively – e.g., bringing shipments into less congested entry points. If West Coast ports are backed up, a 3PL might route ocean freight to the East Coast or Gulf and then truck it, if that avoids a lengthy delay.
• Flexible Warehousing (Forward Stock): In times of uncertainty, holding inventory closer to patients is beneficial. 3PLs offer multi-client distribution centers in key markets. Pharma companies can keep a buffer stock in, say, a European warehouse managed by the 3PL, so that even if international transport is delayed, local reserves can supply patients. This is an application of the strategic warehousing approach to offset disruptions​ maersk.com.
• Regulatory and Customs Support: Life science 3PLs typically have in-house trade compliance teams. They help navigate customs clearance, handle paperwork like Importer of Record responsibilities, and ensure adherence to regulations (cold chain products often need import licenses, permits, etc.). By smoothing the border crossing, they remove another potential delay in delivery.
• Dedicated Services for Clinical Trials: Clinical supply chains require precision timing (to meet trial protocol windows) and often involve shipping biologic samples or investigational drugs globally. 3PLs have created niche services for this, including direct-to-patient shipments, where they deliver trial drugs to patients at home. This level of service became prominent during the pandemic and is continuing, enabling flexibility and resilience in trials.

The net effect of these 3PL solutions is improved resilience and often cost optimization. A company leveraging a strong 3PL partner can often weather disruptions better because the 3PL is constantly problem-solving and reallocating resources to protect critical shipments. As a result, we’re seeing more outsourcing of logistics: pharmaceutical manufacturers are focusing on their core competency (developing and producing drugs) and leaning on 3PLs for distribution expertise​ (pharmaceuticalcommerce.com).

Strategies for Mitigating Logistics Risks in 2025

To navigate the choppy waters of 2025, life sciences companies should adopt a proactive and strategic approach to their logistics. Here are key recommendations:

1. Diversify Supply Chain Routes and Carriers: Don’t rely on a single lane or single carrier for all shipments. Diversification is a classic risk mitigation strategy. If you traditionally ship all product by air through one hub, explore secondary hubs or even sea-air combinations (shipping by ocean to a certain point then air). Engage multiple freight carriers so that if one faces an issue (strike, bankruptcy, etc.), you have alternatives. Many companies are revisiting their sourcing as well – for example, dual sourcing APIs from different regions to avoid being dependent on one country’s transport lane.
2. Increase Collaboration and Forecast Sharing: Communicate closely with your freight providers and 3PLs. Share forecasts of your shipping needs further ahead so they can secure capacity. The more lead time and information you give logistics partners, the better they can plan (e.g., booking space on vessels or positioning containers). In volatile times, those who plan ahead get priority over those trying to book last-minute. If launching a new product or anticipating a surge (like a vaccine rollout), engage carriers months in advance.
3. Maintain Safety Stock for Critical Products: While no one wants excess inventory, for critical life-saving drugs it’s prudent to keep some buffer stock in key markets. Analyze your product portfolio and identify which items would cause patient harm if a stockout occurred. For those, ensure you have additional weeks of inventory either on hand or quickly accessible. One strategy is regional warehousing (as noted, using 3PL distribution centers) so that each region can sustain itself for a period even if global transport is disrupted.
4. Invest in Visibility and Monitoring: Implement tools for end-to-end visibility of your supply chain. Knowing where goods are and being alerted to delays in real time allows agile response. Use IoT trackers for high-value shipments (GPS trackers that also monitor temperature/humidity for environment-sensitive products). Many modern platforms will provide predictive ETAs (estimated arrival times) using AI, which can adjust if, say, a port backlog is growing. This helps you dynamically reallocate inventory or inform customers of potential delays. Visibility is the first step in control – you can’t mitigate what you can’t see.
5. Develop Contingency Plans: For major routes, have a “Plan B.” If your normal shipping method fails, what is the backup? This might mean having agreements in place with charter services or backup suppliers. Some companies created playbooks during the pandemic (for example, if commercial flights were grounded, they had a plan to use chartered cargo jets). Dust off those playbooks and update them for current conditions. Identify the key failure points (port closure, natural disaster, export ban, etc.) and brainstorm solutions (alternate ports, alternate sourcing, government lobbying channels for exemptions, etc.).
6. Consider Nearshoring or Localizing Logistics: As discussed earlier, nearshoring manufacturing is a long-term endeavor, but in the short term, you can nearshore your distribution. This could mean positioning more inventory in the U.S. for North America demand, or in Europe for EU demand, etc., even if production is overseas. By shortening the supply lines that patients rely on, you reduce exposure to global freight chaos. Even having critical products air-shipped in bulk less frequently (instead of smaller shipments often) can reduce the number of “events” that could go wrong. Fewer, larger shipments might be easier to manage than many small ones.
7. Engage in Industry Collaboration: Many of these challenges are industry-wide, so joining industry groups or forums to share information can be valuable. Organizations like the Bio Supply Management Alliance (BSMA) or PDA (Parenteral Drug Association) often share best practices for supply chain resilience. By collaborating, companies sometimes coordinate in creative ways – for example, co-loading shipments or lobbying jointly for freight policy support (as pharma companies did to prioritize vaccines shipments in 2020). Keep an ear on collective initiatives, such as bulk booking of freezer container vessels or establishing “green lanes” for medical goods in customs.
8. Focus on Sustainability as a Co-Benefit: Interestingly, what improves sustainability can also improve resilience. For example, optimizing routes to reduce carbon footprint often means eliminating unnecessary transfers – which also lowers the chance of delay or error. Using sea freight where feasible cuts cost and emissions, and if properly planned, meets demand. Many pharma firms are pursuing more sustainable logistics (reusable packaging, more direct shipping lanes)​ (maersk.com), which in turn streamline operations. So, tie in some risk mitigation measures with sustainability goals to get internal buy-in and dual benefits.

By implementing these strategies, life science companies can better weather the challenges of 2025’s logistics environment. It’s about being proactive, flexible, and leveraging partnerships.

Conclusion and Call to Action

The outlook for 2025 indicates that freight and logistics challenges will remain a pressing concern for the life sciences sector. However, companies that learn from recent disruptions and strengthen their logistics strategies will be well-positioned to ensure continuity. By working with experienced 3PLs, investing in visibility, and adopting resilient practices, pharma and biotech supply chains can deliver for patients despite the obstacles.

Euro-American Worldwide Logistics is committed to guiding life science companies through these headwinds. We offer specialized 3PL services for pharmaceuticals – including cold chain management, global transport solutions, and real-time tracking – to keep your supply chain agile and secure. Don’t let logistics hurdles delay your lifesaving products. Contact Euro-American Worldwide Logistics today for a consultation on fortifying your pharmaceutical logistics and to learn how our solutions can help you mitigate freight risks in 2025.

References

Premier Inc. (2024). New Year, Ongoing Challenges: Healthcare Supply Chain Disruptions in 2024​.
premierinc.com

BiopharmaDive Press Release. (2025, Jan 14). Survey: 92% Concerned About Pharma Supply Chain Risk​.
biopharmadive.com

C.H. Robinson. (2024, Aug). Freight Market Update: Rate Increases Announced​.
chrobinson.com

Saraceno, N. (2024). Pharma 3PLs and Future Outlook. (Pharmaceutical Commerce)​
pharmaceuticalcommerce.com

Maersk. (2024). Strategic Warehousing to Navigate Supply Chain Disruptions​.
maersk.com

AutoStore. (2025). 5 Challenges for 3PLs in 2025​.
autostoresystem.com