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Supplemental vaccine distribution through Reefer ULDs

June 7, 2021
Reefer unit load devices can provide handling companies temperature continuity throughout the supply chain

With the ongoing effort to ship and distribute critical COVID-19 vaccines sparking increased scrutiny on the cold chain, and potential gaps that exist in the supply chain, Refrigerated Transporter turned to the experts at Aeroterm, which specializes in airport logistics, to talk about reefer unit load devices (ULDs), and explain how refrigerated carriers and other handlers can use the devices in the storage and transportation of pharmaceuticals at ultra-cold temperatures.

Americans are full of hope this spring as the pace of COVID-19 vaccinations outstrips new infections after a difficult year of quarantines and restrictions. Collaborative efforts between scientists, pharmaceutical manufacturers, and regulatory agencies resulted in the approval of multiple highly effective vaccines against the novel SARS-Cov2 coronavirus with unprecedented speed. Less than a year after the identification of the virus, production lines were turning out vials of vaccine for delivery across the world. The names Pfizer-BioNTech, Moderna, Johnson & Johnson as well as those of other vaccine producers have become recognizable in households across the world.

The distribution of these vaccines is a monumental effort as each requires specific temperature controls to maintain the integrity of the vaccines. For example, Pfizer has noted that their vaccine requires storage temperature conditions of -70°C for up to 10 days unopened and 2°C to 8°C for five additional days of storage. On the other hand, Moderna requires multiple-dose vials to be stored between -25°C to -15°C where packaging prevents any direct contact to dry ice and is designed so as not to allow temperatures to go below -40°C. With these temperature control requirements, it is integral to maintain a sound cold chain, or temperature-controlled supply chain, to facilitate the distribution of the vaccine across the United States. Air cargo is critical to this process.

Reinforcing the cold chain

Across the country, air cargo warehouse cold storage capabilities vary drastically from airport to airport and even building to building at the same airport. The success of the vaccine distribution effort relies on implementation of a uniform handling process at airports, especially those with limited cold storage resources to facilitate the quick transfer of temperature-sensitive goods to their destination. Reefer ULDs, or reefer unit load devices, can provide handling companies temperature continuity throughout the supply chain while not necessarily requiring cold storage facilities. Incorporating a standardized process in the industry to properly stage and transport these ULDs based on specified guidelines will allow for much less spoilage in areas where cold chain infrastructure is lacking but there is robust demand.

The World Health Organization estimates that historically up to 50% of vaccines are spoiled every year largely due to a lack of logistics infrastructure. If this statistic does not change, potentially 1 billion COVID-19 vaccines could be wasted globally. It is not feasible to make up for the lack of cold storage warehousing this year to ensure smooth vaccine delivery, so alternative solutions are necessary. Reefer ULDs provide the potential to maintain non-integrated handling continuity throughout the supply chain. Unlike traditional integrators such as FedEx, UPS and DHL, who have comprehensive uniform handling strategies which can be applied throughout their internal network, companies in the handling environment do not control the supply chain outside their specific role and therefore rely on partnerships to maintain continuity in the cold chain. Reefer ULDs can fill gaps in the cold chain that currently make cargo vulnerable to spoilage.

Security and operational efficiency

Utilizing reefer containers can also provide the capability to create redundancy in the supply chain designed to mitigate security risk. Reefer ULDs have temperature monitoring and container tracking capabilities which can provide handlers and clients with much needed transparency. When vaccine packages are placed inside a reefer ULD container and then subsequently into a reefer truck, there are three different tracking mechanisms working collaboratively during the trip.

  • First, when a truck is dispatched, their routes and timing will be tracked.
  • Additionally, reefer ULDs loaded on a truck with doors facing the front of the trailer will require anyone looking to steal cargo to offload the containers with a forklift. If a truck deviates from its route, it will be detected with ample time to address the deviation or retrieve goods before they are stolen.
  • Adding additional reefer containers on a truck will increase the redundancy of tracking shipments, therefore providing for better security along the supply chain.

As stakeholders look to implement their pharmaceutical and perishable cargo initiatives, reefer containers provide a sophisticated, yet easily implemented means of providing a cost effective and high-quality cold storage option without having to invest capital in permanent fixtures. Reefer containers provide a variety of benefits such as:

  • Temperature monitoring and container tracking capabilities provide handlers and clients with much needed transparency.
  • The ability to freeze stored commodities anywhere between -70°C to 30°C, directly addressing the requirements of both Pfizer and Moderna vaccines.
  • Wi-Fi enabled containers which allow handlers and their customers to track packages and monitor temperatures throughout the transportation process.
  • Capacity to plug in and charge ULDs where power is available, adding an additional layer of protection from spoilage.
  • Easily stored inside or outside of warehouses, providing flexibility to be moved where needed, and providing a wide range of temperature control options.
  • A sophisticated, yet easily implemented means of providing a cost effective and high-quality cold storage option without having to invest capital in permanent fixtures.

With the struggles that the aviation industry has faced adapting to the COVID-19 pandemic, some businesses have refocused their attention to re-engineering processes that have lagged beyond their useful life. Empty ULD container storage continues to be a concern at many major airports. For example, the poor cycling of LD-3 containers creates overages of empty containers at airports, where they are susceptible to damage and may potentially cause damage. While airports and carriers are focused on an economic recovery, a lull in flight activity may be the ideal time to review empty ULD handling as a way to improve efficiency. On several occasions, the Internatinoal Air Transport Association (IATA) has tried to create a global ULD distribution strategy, specifically when carriers owned their own ULD equipment. In today’s environment some of these ULDs are now leased from third parties who oversee the control of their equipment. There may also be an opportunity to provide a universal ULD handling methodology through the creation of a standardized strategy at major airports where ULD manufacturers have storage facilities and control the cycling of their equipment.

Refrigerated transport beyond COVID-19

The cold chain was becoming more integral to a successful supply chain prior to COVID-19, and because of the pandemic, shipping pharmaceuticals is more important than ever. If industry stakeholders are to meet the challenges of today and tomorrow, they need to think of new ways to utilize existing components of air cargo to better facilitate vaccine and perishable commodity distribution. The world is in desperate need of efficient vaccine distribution to overcome this pandemic, so implementing a more active role for reefer ULDs, ULD containers, and ULD cycling can help sure up gaps in the cold chain that currently exist. In preparation for the next epidemic or other existential crisis, a strong supply chain will inevitably be necessary to any future solution. It is time to reimagine the way we move supplies around our country and the world, and ULDs are a great place to start.

Bob Caton is the regional vice president of business development for Aeroterm, Realterm’s on-airport logistics real estate operating platform. Alex Petrescu is a senior private equity analyst with Realterm.
About the Author

Bob Caton

Bob Caton is the regional vice president of business development for Aeroterm, Realterm’s on-airport logistics real estate operating platform. 

About the Author

Alex Petrescu

Alex Petrescu is a senior private equity analyst with Realterm.

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