MD Logistics brings Foreign Trade Zone services to bear for Pharmaceutical customers


Foreign Trade Zone activated in MD Logistics’ Midwest pharmaceutical hub.

INDIANAPOLIS, IN– MD Logistics has become one of only a few pharmaceutical third party logistics (3PL) companies in the Indianapolis area to achieve Foreign Trade Zone status.

Having FTZ status means that when a customer’s imported product arrives at a U.S. port, it can be moved immediately to MD Logistics facilities without waiting for customs clearance. This rapid movement creates a significant advantage when dealing with the delivery of sensitive pharmaceuticals, most of which require storage at a constant temperature of 2 to 8 degrees Celsius.

This achievement comes just 18 months after the company activated a foreign trade zone within its retail logistics operation.

Being able to rapidly move expensive and sensitive pharmaceuticals significantly reduces the risk of handling such product, as well as substantially reducing costs incurred by the shipper.

It also enhances MD Logistics’ customer service on an international scale, from order entry to final delivery. Products are considered still on foreign ground while they are stored in an FTZ environment, and customers do not have to pay customs fees until the product is consumed or moved out of the FTZ.

“Products stored in an FTZ are considered to still be on foreign ground, which delays payment of customs fees,” said Jeff Luthman, vice president of life science solutions for MD Logistics. “With our FTZ status and our expertise in handling pharmaceuticals, customers can be assured of their product’s integrity when it reaches the end user, the consumer.”

MD Logistics sees this as an opportunity to increase jobs and business in Indianapolis, said John Sell, vice president of retail and transportation services.

“We’re excited to launch a service that will profoundly improve efficiency and significantly lower the cost of our services on a global scale, as well as grow our business locally,” he said.