Healthcare logistics surges with temperature-sensitive drugs

Healthcare 3PL market to double by 2034

The global market for healthcare third-party logistics is projected to reach roughly $502.6 billion by 2034, doubling from $246.1 billion in 2024, according to a report from Allied Market Research. With an estimated CAGR of 7.8%, this growth is expected to be driven by temperature-sensitive medications like biologics, vaccines, and other products that require special treatment.

As the market expands, so does the risk. Shippers of specialty medications and other high-value healthcare products should consider the following steps:

• Enhanced security measures, including GPS tracking, tamper-evident seals, and vetted carrier networks.
• Strict temperature control protocols to maintain standards across modes of transportation and geographies.
• Compliance consulting to navigate fast-evolving customs, documentation, and product-handling requirements.

The report notes AI and IoT tracking to enable real-time visibility and control as difference-makers for pharma supply chains. Shippers could benefit from an Agentic Supply Chain and the Always-On Logistics Planner.

Growing retail distribution for GLP-1 drugs

Retail distribution of popular GLP-1 drugs for diabetes and weight loss is expanding, as many insurers don’t cover GLP-1 medications for weight loss alone. Sam’s Club and Costco members can now buy these prescription medications at discounted prices, even without insurance. Novo Nordisk, which makes Ozempic and Wegovy, was already partnering with retailers including CVS and Walgreens to broaden access, cutting out-of-pocket costs to about half of the usual $1,000.

The growth in retail distribution of GLP-1 drugs introduces several logistical and regulatory complexities for pharmaceutical companies. These medications are high-value and temperature-sensitive, requiring strict cold chain management. Deliveries to big box retailers demand precise coordination, as these locations may not be equipped with traditional pharmaceutical receiving protocols.

Companies must also navigate varying state-level pharmacy regulations, ensure secure handling to prevent theft or diversion, and maintain data integrity for prescription tracking and compliance. Partnering with a logistics provider experienced in both pharma and retail distribution is essential to mitigate risk and maintain product integrity.

Tariff updates

• Reciprocal tariffs: On November 5, the U.S. Supreme Court heard oral arguments in the case that will determine whether the president has the authority to impose tariffs by declaring a national emergency. Reciprocal tariffs on imports from most countries were established under the International Emergency Economic Powers Act (IEEPA), as were tariffs imposed on goods from China, Mexico, and Canada with the goal of reducing the flow of fentanyl. If the Supreme Court determines the president does not have this authority, it’s uncertain whether refunds will follow. A ruling is expected by early to mid-December.
• China: An interim U.S. deal with China announced in writing November 1 provided some relief for healthcare importers. It included a decrease in the drug-related tariff from 20% to 10%, set the reciprocal tariff at 10% for a full year instead of it rising to 34% on November 10, and averted the threat of an additional 100% tariff. These measures are scheduled to go into effect November 10. See the White House fact sheet for more details.
• Canada: On October 25, the U.S. administration said it would add 10% to tariffs on goods from Canada. It’s not clear when this measure will take effect and which goods will be affected. Most Canadian exports to the United States are exempt from tariffs under the United States-Mexico-Canada Agreement (USMCA). Goods not covered by USMCA have been subject to a 35% tariff since August 2025.
• New Asia deals: The United States reached tariff deals with Malaysia, Thailand, and Vietnam. Each country agreed to eliminate tariffs on U.S. goods, with some exceptions. Imports to the United States from Malaysia and Thailand will face a 19% tariff, and those from Vietnam 20%. In each case, exceptions apply.

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