Pharma shippers consider sea freight - but insist it's not all about price

 Pharmaceutical shippers have insisted airlines to become more trustworthy, in the Life Science and Pharmaceuticals conference in London.

According to Global category leader for AstraZeneca, Julian Wann, that by the completion of next year the pharma company would be transfer 70 percent of its volume by sea, while this present  year it was only 44percent. According to Julian Wann air freight is 78 percent more expensive per kilo  as compared to sea cargo. He further stated that the density of the air cargo supply chain meant that in some situations air freight is considered risky and unsecure. The value is in having the right product at the right place at the right time and the highest percentage of our complications come from air cargo.

Security Measures

Security is very much important for us. If anything happens erroneously, trusting on insurance is not actually the topic. Last year, AstraZeneca changed the way it organizes its supply chain, he stated about  to emphasis on the subjects of velocity, visibility and variability. Price is not the matter of debate. Sea cargo gives trustworthiness that we didn’t have before. According to him velocity does not mean, let’s fly it everywhere. If we become more well-organized we can plan sea freight. There is no loss, and it helps us drive velocity.

Is collaboration needed with airlines?

 Julian Wann  also emphasized on  close collaboration with airlines. This is a chance for the airline industry to get closer to forwarders. Forwarders are working very hard to support us. Airlines, answered that some forwarders did always not give them adequate delivery information. According to a senior manager for special cargo at IATA Andrea Gruber, it was upon the transporter and the forwarder to bring the related parties together. Historically, airlines haven’t wanted to approach the shipper. But the ground handler also needs to be involved and the freight forwarder needs to get the right people together.

What AstraZeneca believes?

According to another airline AstraZeneca was recognized as a general cargo shipper and asked whether more excursions happened when transporters did not pay for the specialized pharmaceutical products presented by the airlines.

Mr Wann answered that the company did use some specialized products, but questioned the paying for the extra cost every time.

The pharma services don’t always give us the security we would like. We don’t always have to spend that. We can get right without it and we want certainty for that additional cost.