Health Care Logistics Shines Through 2025’s Cloudy Market
Freight Giants Hungry for Margins, Growth Prospects
Key Takeaways:
- Health care logistics stood out in 2025 as major freight companies pursued growth in the high-margin segment despite a weak broader freight market.
- UPS, DHL and GXO led dealmaking, highlighted by UPS’ $1.6 billion purchase of Andlauer Healthcare Group and multiple healthcare-focused acquisitions by DHL and GXO.
- Carriers cite strong demand drivers, with healthcare logistics projected to grow steadily through 2030 and FedEx forecasting about $9 billion in health care revenue by fiscal 2025.
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Health care logistics had more than a moment in the spotlight in 2025 as the niche segment found admirers in what generally was an underwhelming freight market landscape over the past 12 months.
Some of the biggest players in the freight sector expedited their growth in the high-margin segment that observers also see offering alignment with shifting demographic trends and resilient demand profiles.
From dedicated transport contracts to medical device, clinical trial, biopharma, cell and gene therapy logistics, there is a growing awareness of the opportunities available, particularly after a three-year freight rate recession in which the last 12 months have been dominated by uncertainty.
The biggest deal of the year closed in November when UPS finalized the purchase of Andlauer Healthcare Group, an Ontario-based cold-chain health care logistics specialist, for $1.6 billion.
UPS said the acquisition — announced in April — would allow it to deliver faster transit times, improve shipment visibility and expand its global network for pharmaceutical and medical device customers.
(UPS)
UPS ranks No. 1 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 5 on the TT Top 100 list of the largest logistics companies. The company also ranks No. 2 on the TT Top 50 list of the largest global freight carriers.
Earlier in 2025, UPS also closed the purchase of Germany’s Frigo-Trans for an undisclosed sum, seeking to expand its European health care logistics operations.
Fellow logistics behemoth DHL Group also closed two health care logistics deals in 2025.
In April, DHL bought white-glove logistics specialist Cryopdp from Nashville, Tenn.-based Cryoport for an undisclosed figure. Cryopdp specializes in logistics for clinical trials, biopharma, cell and gene therapies.
DHL said the deal would upgrade its specialty pharmaceuticals logistics capabilities and support plans to become a leader in life science and health care logistics by 2030.
DHL Supply Chain ranks No. 13 on the logistics TT100 and No. 5 on the global freight TT50.
Cryoport and DHL also inked a deal focused on improving global life science supply chains.
And in September, DHL Supply Chain agreed to buy Tampa, Fla.-based final-mile and health care logistics specialist SDS Rx for an undisclosed sum.
SDS Rx offers final-mile delivery and specialized health care transportation for long-term care and specialty pharmacies, radiopharmacies and health system networks.
DHL said Sept. 9 the deal would enhance the company’s same-day and expedited options in particular.
“The life sciences and health care sector is projected to grow at a compound annual growth rate of 11% through 2030. Specialty pharmacy already accounts for approximately 50% of total prescription drug spending in the U.S., and the number of patients served by specialty pharmacies grew by 12% between 2018 and 2022,” DHL Supply Chain North America CEO Mark Kunar said in September.
(GXO Logistics)
Kunar, previously DHL Supply Chain North America’s chief financial officer and chief strategy officer, replaced Patrick Kelleher as CEO in July. Kelleher became GXO Logistics CEO in August.
GXO ranks No. 3 on the logistics TT100. In May, the Greenwich, Conn.-based company won a $2.5 billion contract as the new logistics partner for England and Wales’ NHS Supply Chain. The company provides procurement and logistics services for the state-owned National Health Service.
In November, Kelleher told TT in an interview: “With the NHS win in the U.K., we’re seeing a lot of pipeline activity around life sciences, an area in which we’re investing.
“I’m excited about that for the opportunities that those verticals present. I’m also excited in that those tend to be independent in terms of their economic performance to our retail, omnichannel and consumer products facing businesses, which I think provides a nice portfolio blend of industry vertical for us going forward,” he added.
GXO closed a second European health care logistics acquisition in April, finalizing the takeover of U.K.-based transport and logistics services company Wincanton.
An October report by Allied Market Research indicated the health care third-party logistics market was valued at $246.1 billion in 2024, and is estimated to reach $502.6 billion by 2034, growing at a compound annual growth rate of 7.8% from 2025 to 2034.
UPS and DHL’s peers aren’t about to let such a market opportunity go begging either.
FedEx Chief Customer Officer Brie Carere said during a March 20 earnings call that FedEx would be onboarding nearly $400 million in new annualized health care revenue over the following 90 days and end its fiscal 2025 with about $9 billion in health care revenue.
A quarter earlier, Carere told analysts that health care was its priority business-to-business vertical, with the company targeting growth outside the U.S. in particular.
FedEx ranks No. 2 on the for-hire TT100, No. 2 on the global freight TT50 and No. 43 on the logistics TT100.
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