Global turmoil puts drug supply chains to ultimate test

Medicines are designed to relieve pain, treat serious illnesses and save lives — but their effectiveness depends entirely on reaching patients in usable condition. As reported by Agence France-Presse (AFP), ensuring that happens has become the responsibility of a rapidly expanding sector: pharmaceutical logistics, now under growing pressure from global disruptions.

Recent shocks to supply chains — from war to pandemic fallout and trade tensions — have highlighted how vulnerable the delivery of critical medical products can be. With concerns about medicine shortages rising amid the ongoing Middle East conflict, logistics providers are working to safeguard the steady flow of drugs to hospitals, pharmacies and laboratories worldwide.

One key European hub is operated by DHL near Frankfurt. Located in Florstadt, the facility functions as a dedicated health logistics campus designed to handle sensitive pharmaceutical shipments. Spanning an area equivalent to 14 football fields and topped with solar panels, the site serves as a central node in Europe’s medical supply network.

A wide range of products passes through the complex — from insulin capsules and everyday medications to specialised items such as medicated sunblock and industrial chemicals like sulphuric acid. Given the sensitivity of these materials, strict protocols are enforced. Temperature-controlled environments, sterile handling conditions and continuous monitoring ensure that products remain within required safety thresholds.

“Our 600 employees are specially trained because they know that, ultimately, the patient is at the end of the supply chain and no errors are allowed,” said Katrin Hoelter, head of DHL’s logistics division for Germany and the Alpine region, speaking to AFP during a visit to the facility.

Global instability has already begun to influence operations. The US-Israeli war against Iran has disrupted shipping routes, prompting some clients to increase their storage capacity at the Florstadt site to secure access to essential raw materials. While the facility is less reliant on the Strait of Hormuz, it remains connected to broader global trade routes, particularly via the Suez Canal.

Maintaining precise environmental conditions is central to pharmaceutical logistics. At Florstadt, the company can simulate a wide range of regulatory requirements and temperature settings, with storage capabilities reaching as low as minus 80 degrees Celsius to accommodate highly sensitive products. Inside sterile rooms, workers in full protective suits handle substances such as insulin components, preparing samples for testing and distribution.

The sector’s importance is growing alongside the pharmaceutical industry itself. Data from health analytics firm IQVIA suggests the global medicines market could surpass $2.6 trillion by 2030, driven by demand in the US and emerging economies. High-growth areas include cancer therapies and weight management treatments, according to Germany’s LBBW.

For DHL, part of Deutsche Post, pharmaceutical logistics has become a key growth driver, helping offset declines in traditional mail services and the impact of geopolitical tensions on trade. The Florstadt hub, which began operations in 2015 supporting the pharmaceutical company STADA, has since expanded into a four-building complex with capacity for 140,000 pallets.

Looking ahead, DHL plans to invest €2 billion globally in pharmaceutical logistics by 2030, with around a quarter allocated to Europe and roughly half directed toward North America — particularly the United States. This shift reflects a broader trend, as European drugmakers relocate parts of their production to the US in response to tariff policies under President Donald Trump and efforts to reduce drug prices.

Within five years, DHL expects revenue from its health logistics division to double to €10 billion, underscoring the sector’s rapid expansion. According to Hoelter, this growth mirrors a wider move within the pharmaceutical industry to outsource logistics operations, allowing companies to concentrate on their core activities: research and manufacturing.

By Tamilla Hasanova