Recognising the importance of the ever-growing pharmaceutical industry in the country, air cargo India used the first day of the conference to shine a light on the sector’s expansion and explore the future of this cargo segment.
In post-Covid era, India has witnessed exponential rise in pharmaceutical exports staggering, with a growth rate of 25% that puts its value at USD $27 billion. The most strategic and important trade partner for the pharmaceutical exports is the US with more than 10% of the total output exported to America from India.
But with greater responsibility comes a set of challenges that have loomed over the Indian pharmaceutical industry in the past few months with the World Health Organisation (WHO) raising concerns over the quality of the pharmaceutical products, along with the strength of the supply chain.
Thus to address the key issue of collaboration across borders, the panel of experts took the floor to add their opinions and expertise to understand the eco-system that needs to be identified, valued and adhered to by industry stakeholders.
The panel discussion was moderated by Frank Van Gelder, Secretary General of Pharma.Aero and Tushar Jani, Group Chairman of Cargo Service Centre.
Van Gelder asserted that the global pharmaceutical market is worth USD $1 trillion today, with logistics expenses accounting for 7% of that figure, along with a compound growth rate (CGR) of over 6.56% in the next 20 years. Out of this, the airfreight industry is responsible for around 3.59%, which will contribute 5.58% to airline revenue.
On the other hand, with India’s biggest export partner being the US, Air Cargo moves 13% of the volume but 73% of the value.
Speaking at the event, panellist Samuel Speltdoorn, Cargo Business Development Manager at Brussels Airport Company stated that it is mandatory to develop the air cargo community with a focus on clear communication and a completely unique Pharma Cluster.
Jimmy Nares, Section Chief – Aviation Marketing at Miami-Dade Aviation Department, Miami International Airport agreed with Speltdoorn, on continuing to develop and bring in stakeholders and community to achieve this goal of dealing with pharmaceutical logistics. Nares further stated that “the systematic approach to ecosystem and stakeholder development is mandatory and collaboration amongst the partners will be the key to overcome any challenges.”
Discussing the regulatory environment, the panel highlighted that it is mandatory to develop global transparency and emphasis on transhipment movement to harness benefits of pharmaceutical cargo eco-system.
Netka Hohlfeld, Department Head Life Science and Healthcare Logistics, Dachser put forward her views by saying that “the issues are not only limited to the regulatory framework but with the quality consistency as well.” Further issues including supply chain, market access, trade agreements with bi-lateral relations and collaborations were also key factors to address the challenges.
Rashmi Karnad, Manager Climate Control Product – Pharma at Qatar Airways also agreed on the issue of brining the community closer to overcome the challenges around the complete pharma cargo life-cycle.
Vikas Rebello – Head Logistics, India APAC at Teva Pharmaceuticals mentioned in his address that the key factor for the pharma industry is to deliver the product from plant to the right patient with the complete collaboration with the logistic stakeholders. But the key requirement for this cycle is to have a clear communication and stakeholder engagement.
Closing the panel discussion, all the participants agreed that digital improvements along with research and development in the logistic environment is a must to adhere to the desired quality control and enhance the overall logistics infrastructure of the cargo industry in India.
