Q284 · If my pharmaceutical wholesale business…

Q284 · Category F: Fees, budgeting and financial planning (Q251–Q300)

Cold-chain transport is the most costly part of pharmaceutical logistics and can significantly increase your operating expenses. The additional costs are mainly as follows: 1. “Specialist transport vehicles”: you will need dedicated vehicles fitted with refrigeration units and temperature and humidity data loggers. Their purchase and maintenance costs are far higher than those of ordinary lorries. 2. “Validation and calibration”: refrigerated vehicles and cold-chain facilities in warehouses require regular temperature mapping and equipment calibration. 3. “Packaging materials”: validated shippers and coolants must be used; these are consumables. 4. “Higher transport charges”: if you outsource to a third-party logistics company, cold-chain services typically cost 50% to 200% more than ordinary freight transport.

📘 Regulatory basis

The PIC/S GMP Guide and the Department of Health's Guidance Notes on Licensing of Drug Wholesalers impose stringent requirements on the storage and transport of medicines requiring temperature control, such as vaccines and biological products, including uninterrupted temperature records throughout the supply chain.

📗 Drew Tang's recommendations

For start-ups with low business volumes, we do not recommend setting up your own cold chain fleet. A more cost-effective and efficient approach is to work with one or two reputable specialist third-party cold chain logistics companies with GDP certification. This converts high fixed-asset investment into variable operating costs, reducing initial financial pressure.

📕 Risk notice

Any interruption in the cold chain (Temperature Excursion) may result in the destruction of an entire batch of high-value medicines, causing substantial financial losses. More seriously, if the issue is not detected promptly and the medicines are sold, patient safety may be threatened, leading to serious legal and reputational risks. There must be no compromise in cold-chain management.

Plan Your Hong Kong Pharmaceutical Licensing Project with Drew Tang

Business Manager Tang Shangyong (Drew Tang) will review your products, operating model, licence type and preparation requirements with you one-to-one. The precise service scope is confirmed in writing; pharmaceutical duties are carried out by legally qualified personnel, and approvals are determined by the competent authorities.

If my pharmaceutical wholesale business requires cold chain transport (Cold Chain Logistics), how much will this add to my costs?

Plan Your Hong Kong Pharmaceutical Licensing Project with Drew Tang