2024-07-21 09:15:08
The error in her software upgrade CrowdStrike which led to the collapse of its operating systems Microsoft and caused the largest information systems blackout in history, not only grounding thousands of planes, but causing disruption and severe delays at US and world ports.
This is yet another blow to the supply chain, which has suffered a lot in recent years. “Airplanes and cargo ships are not where they should be. It will take many days or even weeks to fully resolve the issues,” Niall van de Wouw, head of aviation at consultancy Xeneta, told CNBC. “This is a reminder of how vulnerable supply chains – sea and air – are to an IT failure,” he added.
Thousands of flights were canceled or delayed at the world’s biggest freight hubs in Europe, Asia and North America.
Increased demand
This new challenge to the global supply chain comes amid an increase in global demand, with demand up 13% from a year earlier. Air freight supply has increased, but only by 3%, already causing higher costs, according to Xeneta.
“Charters already had concerns about air cargo capacity due to the huge increases in demand in 2024, largely due to the extraordinary growth of e-commerce products from China to Europe and the US,” explained van de Wouw. “Available capacity in the market is already limited, so airlines will find it difficult to move cargo tomorrow that should have been moved today.
Pete Buttitage, the US secretary of transportation, told CNBC on Friday morning that “these systems, these flights, operate on such tight timescales that even after a problem is addressed, the effects linger for a long time.”
Small problems, big delays
Ports, freight rail lines, report some problems, but have not stopped operations.
At the ports, however, even minor problems can turn into long delays. In several cases, for example, gates were affected, meaning trucks could not enter or exit for hours.
As for couriers, FedEx said in a statement that it has activated contingency plans, but added that “delays to package deliveries are possible.” UPS said in a statement that computer systems in the US and Europe were affected, but its airline continues to operate efficiently and drivers are on the road delivering customers.