Analysis: Airlines scramble to prepare for ultra-cold COVID-19 vaccine distribution

va Q tec AG

18/11/2020 07:01

By Laurence Frost and Ilona Wissenbach
    PARIS/FRANKFURT, Nov 18 (Reuters) - Airlines are scrambling
to prepare ultra-cold shipping and storage facilities to
transport COVID-19 vaccines developed by Pfizer and Moderna,
whose doses, which require deep freezing, are likely to be among
the first to be distributed.
    A recent survey by an air cargo association and a drug
shippers' group found only 15% of industry participants felt
ready to transport goods near the minus 70 degrees Celsius
(-94°F) required by the Pfizer Inc  PFE.N  vaccine, while around
60% could meet Moderna Inc's  MRNA.O  less stringent -20°C
requirement.
    Typically, airlines use containers with cooling materials
such as dry ice to transport pharmaceutical products, but some
don't have temperature controls, making products susceptible to
unforeseen events such as flight delays.
    Airlines are now considering options ranging from a large
plug-in freezer that can cost about as much as a small car to a
multi-layered canister that uses liquid nitrogen to ship
vaccines requiring a deep freeze.
    The potential demand for such high-end packaging has helped
shares of cold container specialists such as Cryoport Inc
 CYRX.O  and Germany-based va-Q-tec  VQTG.DE  more than double
in recent months.
    "With direct contracts with five temperature-controlled
container manufacturers, Korean Air has secured sufficient
quantities of containers. For now, we are in the process of
signing contracts with other container manufacturers," a Korean
Air  003490.KS  spokesperson said.     
    Air France-KLM  AIRF.PA  said it was gearing up for a test
run with one of the drugmakers - it declined to say which - that
will see dummy samples shipped at ultra-low temperatures, likely
via Amsterdam's Schiphol airport.
    The drill will use boxes carrying as many as 5,000 doses
each, all cooled by dry ice, Air France-KLM special cargo
manager Béatrice Delpuech told Reuters. Later shipments may also
use larger ultra-cold containers rented from va-Q-tec.
    "They need to validate the entire logistics chain from end
to end, including the air freight segment," Delpuech said. "We
have a dedicated task force examining every step of the process
with all our teams, to make sure there are no hitches anywhere."

    DRY ICE LIMITS
    But one difficulty with vaccine transport is that airplanes
can only carry a limited amount of dry ice - frozen carbon
dioxide - as it turns into gas over time, displacing the
breathable air in the cabin.  
    All widebody planes can carry a maximum of around 1 tonne of
dry ice in refrigerated and insulated containers, according to a
DHL white paper on vaccine transport.
    "Depending on the type of aircraft, there are usually not
more than a few containers on board at the same time," said
Joachim von Winning, chief executive of Air Cargo Community
Frankfurt.
    For an alternative, Deutsche Post AG's  DPWGn.DE  DHL has
been using Cyroport's capsule containers, which use liquid
nitrogen to keep goods as cool as -150C for up to 10 days to
support clinical vaccine trials, said Patricia Cole, DHL Global
Forwarding's global head of temperature management solutions. 
    Although it is relatively a small-scale solution, with only
hundreds of vials in each container, broader preparations have
already begun.
    Pfizer, which is working with DHL, FedEx Corp  FDX.N  and
United Parcel Service Inc  UPS.N  for vaccine distribution in
the United States, said on Monday it has launched a pilot
delivery programme in four states to help it refine its
nationwide and global shipping plan.  urn:newsml:reuters.com:*:nL4N2I30SG    
    The U.S. drugmaker has also developed temperature-controlled
and GPS-enabled boxes that use dry ice to keep its vaccine at
around -70C for up to 10 days.
    But cold-chain solutions providers such as Sweden's
Envirotainer say so-called active containers, which use electric
motors to cool their contents, are safer and more
cost-effective.
    A Envirotainer spokesman said that its fleet of active
temperature-controlled containers was twice that of its
competitors and that it was preparing to increase its capacity
by 50%.
    Va-Q-tec also said this month that it would significantly
expand its container fleet over the coming months in
anticipation of orders COVID-19 vaccine transport.
    Airlines have become more reliant on cargo for revenue this
year as passenger numbers plunged amid pandemic-related travel
restrictions. 
    Accenture's Seabury Consulting estimates the global roll-out
of a vaccine will generate 65,000 tonnes of air freight, which
is five times the air vaccine trade in 2019.  urn:newsml:reuters.com:*:nL4N2H50OE
    But airlines think the potential for the vaccine to allow a
return to normal travel is most important, KLM chief executive
Pieter Elbers said at a CAPA Centre for Aviation event on Nov.
11.
    "I think overall for the entire industry, the vaccine is
going to be much more important than the cargo revenues it would
bring," he said.

 (Reporting by Laurence Frost in Paris and Ilona Wissenbach in
Frankfurt; additional reporting by Lisa Baertlein in Los
Angeles, Toby Sterling in Amsterdam, Alexander Cornwell in
Dubai, Heekyong Yang in Seoul, Helena Soderpalm in Stockholm and
Jamie Freed in Sydney; writing by Jamie Freed; Editing by
Miyoung Kim and Gerry Doyle)
 ((Jamie.Freed@thomsonreuters.com;))