Reefer Container Genset Market Analysis

In-depth Analysis of Reefer Container Genset Market Industry Landscape

The foreseeable future is expected to witness a substantial surge in the demand for temperature-sensitive medications. A significant proportion of pharmaceutical drugs are susceptible to temperature fluctuations, necessitating precise temperature control during storage and transportation to maintain their efficacy and safety. The pharmaceutical industry faces challenges related to cold chain losses, with approximately 4% of medications not reaching their destination in a viable state due to temperature variations. This results in considerable financial losses for companies, emphasizing the critical need for reliable cold chain transport.

Pharmaceutical shipping companies are making substantial investments in transport containers equipped to maintain precise temperatures required for pharmaceutical contents. High-quality cold transport containers play a pivotal role in overcoming the challenges associated with pharmaceutical transportation. Notable incidents, such as Baxter International Inc.'s 2017 recall of a shipment of its INTRALIPID 20% intravenous fat emulsion due to freezing during transport, underscore the importance of effective temperature control in pharmaceutical logistics. A 2019 study by the IQVIA Institute estimated an annual loss of approximately $35 billion in the pharmaceutical industry due to temperature-related issues.

To address these challenges, appropriate temperature-controlled transportation methods, including reefer containers, have become indispensable. The primary advantage of refrigerated pharmaceutical shipping containers lies in their ability to maintain optimal temperatures throughout the transportation cycle. Even a minor temperature deviation can lead to significant financial losses, making precise temperature control crucial, especially during transportation across locations with varying temperature conditions.

Pharmaceutical reefer units equipped with sensors can detect small temperature variations and potential exposure to light, ensuring the integrity of pharmaceutical products. Companies like Klinge Corporation in the United States offer various pharmaceutical transport container options designed to meet the temperature requirements of different pharmaceutical products, including vaccines, blood, plasma, and other biologic materials.

In addition to temperature control, pharmaceutical manufacturers must adhere to stringent regulatory standards set by organizations like the Food and Drug Administration. These regulations govern the handling, packaging, and shipping of pharmaceutical products, extending to the containers used for transportation. Compliance with these regulations is essential to avoid fines, prevent damaged shipments, and ensure the safety of pharmaceutical products.

Theft is another concern in the pharmaceutical industry due to the high value of these products. Well-built reefer containers for pharmaceuticals enhance security, making it more challenging for criminals to access the interior of the unit and its contents. When combined with additional security measures implemented by shippers and warehousing facilities, these containers help mitigate the risk of theft.

The cumulative impact of these factors contributes to the bottom line of pharmaceutical manufacturers. By reducing shipping and handling expenses and minimizing losses attributed to damaged goods, refrigerated containers enhance profitability and offer a high return on investment.

Reefer containers equipped with temperature control technology play a crucial role in meeting the complex requirements and risks associated with cold chain supply for delivering and preserving valuable drugs. Major pharmaceutical and chemical companies, including Novo Nordisk, Eli Lilly, Arkema, and others, are increasingly relying on refrigeration equipment. The growing demand for temperature-sensitive pharmaceutical products is driving the increased adoption of reefer containers, consequently boosting the demand for the reefer container genset market.