Logistics companies including UPS and FedEx are expanding temperature-controlled infrastructure to meet rising demand for specialized medications like GLP-1s. In June, UPS announced a $48 million investment in temperature-controlled facilities, while FedEx's healthcare transportation revenue reached nearly $10 billion in fiscal year 2026. The expansion responds to growing adoption of injectable GLP-1 medications—which require refrigerated storage—with a July Gallup poll finding 11% of Americans now take GLP-1 medications in 2026, up from 3% in 2024. Most injectable GLP-1s including Novo Nordisk's Ozempic and Wegovy and Eli Lilly's Mounjaro and Zepbound require refrigerated shipment to maintain efficacy. The cold-chain logistics market for biologics is projected to reach $39.1 billion by 2033 at an 8.3% compound annual growth rate, according to Growth Market Reports.
UPS and FedEx Invest Millions in Temperature-Controlled Facilities
UPS generated its first $3 billion healthcare revenue quarter in the first quarter of this year, according to CEO Carol Tomé on an April earnings call. The company's global healthcare portfolio has gained market share every year since 2021. UPS President of Healthcare John Bolla stated the company is experiencing "rapid growth" in biologics, cell and gene therapies.
FedEx launched a life sciences organization earlier this month specifically to support pharmaceutical and healthcare product movement. Chief Customer Officer Brie Carere told analysts in June that healthcare transportation revenue in fiscal year 2026 reached nearly $10 billion. FedEx President of Healthcare Nick Gennari said the company has specialized technology including a machine learning engine that allows customers to see product movement with predictive abilities.
The Food and Drug Administration has warned that improper storage during shipping can affect medicine quality and recommends patients do not use GLP-1 drugs that arrive "warm or with insufficient refrigeration." UPS President Bolla said the margin for error is small—even a brief stray from the correct temperature can ruin the medicines.
C.H. Robinson and DHL Address Supply Chain Complexity with Technology
C.H. Robinson surpassed $1 billion in revenue in healthcare logistics alone over the past year, largely due to growth in GLP-1 drugs. Vice President of North American Surface Transportation Ronnie Davis said the supply chain for medications has become more complicated, with many drugs having a short shelf life and needing delivery in precise windows of time. Davis stated that refrigerated supply resources are "constrained" and "not unlimited."
DHL announced last year it plans to invest 2 billion euros ($2.25 billion) in health logistics by 2030, with half allocated to the Americas. CEO of DHL Supply Chain Hendrik Venter said the company uses AI to monitor critical life science products, tracking temperatures and anticipating where issues might happen. DHL launched a pharmaceutical air corridor around the world with a dedicated aircraft and connected network that ensures drugs are not shipped through separate regulatory environments.
Venter stated pharmaceutical companies are outsourcing warehousing activities to DHL, with the company taking over facilities, managing them and integrating them into the rest of their network.
FAQ
What storage requirements do GLP-1 medications have during shipping?
Most injectable GLP-1 medications including Novo Nordisk's Ozempic and Wegovy and Eli Lilly's Mounjaro and Zepbound require refrigerated storage for shipment. The Food and Drug Administration has warned that improper storage during shipping can affect the medicine's quality and recommends patients do not use GLP-1 drugs that arrive warm or with insufficient refrigeration.
How much is the cold-chain logistics market for biologics projected to grow?
According to Growth Market Reports, the demand for temperature-sensitive biologics is projected to grow at an 8.3% compound annual growth rate through 2033 and reach a market value of roughly $39.1 billion.
What investments have logistics companies made in healthcare infrastructure?
In June, UPS announced a $48 million investment in temperature-controlled facilities. DHL announced last year it plans to invest 2 billion euros ($2.25 billion) in health logistics by 2030, with half of that allocated to the Americas. FedEx launched a life sciences organization earlier this month and reported healthcare transportation revenue reached nearly $10 billion in fiscal year 2026.
