Volcanic ash fallout hits pharma
pharmafile | April 21, 2010 | News story | Manufacturing and Production | Clinical Supply Operations, disaster, logistics, supply chain
The headline news in the wake of the Icelandic volcano eruption has been of stranded passengers struggling to get home to their loved ones, but industry has also been hit hard by significant supply chain disruption across all of Europe.
The cloud of volcanic ash consisting of pulverized rock and glass can cause engine failure and damage to onboard avionics and has ground air cargo operations in Europe to a virtual standstill, with airlines losing at least $200 million a day from the disruption.
After a six-day shutdown flights were resumed last night (Tuesday), but delays and flight cancellations will continue while the backlog is cleared.
The pharmaceutical sector has been affected by the disruption because it relies on air freight for distribution of high-value, sensitive materials, particularly biologic medicines and vaccines which rely on cold-storage.
A number of companies have said that for now inventory stocks are avoiding any drug shortages, although that could change if it takes a long time for flights to get back to normal.
Supply chain specialist Barry Tarnuf at insurer Chubb Marine Underwriters noted that airlines, freight forwarders and other intermediaries are in the midst of establishing work-arounds to overcome the difficulties.
Speaking shortly before the flight ban was lifted he noted: “Some European carriers are resorting to additional road express service [while] others are diverting cargo to still-open airports.”
One large cargo consolidator/forwarder is looking to use sea-air, involving the shipping of Asian cargo via vessel to the Middle East and then flying it closer to its European destination, he said.
“Most cargo in the air mode has some inherent time sensitivity even if we do not consider it to be perishable. Of course shippers of cold chain goods are most at risk in these situations,” said Tarnuf.
He recommends that companies have contingency plans, formulated well in advance, prepared on the basis of “internal discussions as well as substantive scenario talks with transportation partners”.
The fallout has also led to debate in the European Parliament about what some are claiming is the EU’s over-reliance on air travel and calls for greater investment in other forms of transport, particularly the railway network.
“The consequences of the volcanic ash cloud are a real danger to the European economy,” said EP President Jerzy Buzek.
“Jobs are at risk across Europe. This crisis reminds us how important it is to invest in all forms of transport on a long-term perspective,” he continued.
Thankfully, the ash cloud does not seem to be a health risk outside of the areas closest to the eruption, according to the World Health Organization.
In a statement issued by the WHO yesterday, Dr Carlos Dora said air quality monitoring shows pollution from the ash cloud is not reaching ground level in most of Europe, and even if it did so the health impact would be minimal.
Have you or your company been affected by the disruption? Share your story by leaving a comment below.
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