Rapid Distribution of COVID-19 Vaccine Ensued a Surge in Business for Online Shipment Industry

Logistical obstacles are a major risk for efforts to quickly deliver COVID-19 vaccines, but they have contributed towards booming business for companies such as private California-based Cloudleaf, Germany-based SAP SE and others selling technology to monitor shipments from factory freezer to vaccines being shot in the arm.

Cloudleaf, sponsored by Intel Capital, the venture arm of chipmaker Intel Corp, uses sensors attached to material containers to monitor location, temperature, humidity, vibration, and acceleration.

The data is being sent to the cloud by sensors, where an artificial intelligence algorithm is able to predict about – if action is needed to prevent a product from being exposed to temperatures outside the recommended range that are known as excursions.

The Chief Executive of Cloudleaf, Mahesh Veerina stated that this year the orders have jumped 500 per cent. The company had to broaden its workforce and increase capital spending by as much as 80 per cent in order to keep pace. Similar growth in capital spending for 2021 is expected.

With the booming business, it has also increased the need for fresh capital. This year, millions of dollars have been raised by Cloudleaf and it is planning to raise “very significant” amounts of capital in the year 2021.

Pfizer Inc and German partner BioNTech’s vaccine should be shipped and stored at a temperature that is ultra-cold or on dry ice and it can only last at a standard temperature of the refrigerator for up to five days.

In contrast, Moderna Inc’s vaccine is expected to receive U.S. regulatory authorization as soon as Friday. It can be stored in a regular refrigerator for up to a month.

The risks of logical accidents have increased with these varying requirements. As per the International Air Transport Association, by the time the vaccines arrive at their destination, a quarter of them are degraded because of the incorrect shipping procedures. The losses that are associated with excursions of temperature in the healthcare industry are estimated annually at about $35 billion.

In 2021, the losses could be significantly higher, given the scale and the magnitude of the COVID-19 vaccine rollout.

In California, at least two trays of COVID-19 vaccine doses were given that had to be replaced after their storage temperatures had fallen below minus 80 Celsius (minus 112 Fahrenheit).

To help reduction of the losses and mitigate the risks of theft or counterfeiting the vaccines, Blockchain and sensor-enabled cold chain monitoring tools can be used.

SAP’s digital solution is being used by Moderna to help serializes and distribute its vaccine. The applications are intended to prevent counterfeit medicinal products and to allow cooperation with contract manufacturers and wholesalers.