The recent disruption and delays to air cargo services due to a global IT outage have underscored the fragility of supply chains worldwide.
On Friday the 19th of July the global IT blackout highlighted the fragile nature of global logistics and supply chains. This blackout was caused from a faulty update to the Microsoft cybersecurity software, deployed by Crowdstrike, which temporarily grinded certain supply chains to a dead stop. From road haulage not being able to access the Port of Felixstowe to major air hubs in Europe, Asia and North America grounding all air traffic. Meanwhile, seaport and rail port operations seemed to have been minimally affected by the outage.
Whilst all supply chains are complicated, air supply chains are particularly so and disruptions of this kind will have knock on effects for weeks according to Xeneta’s chief airfreight officer, Niall van de Wouw. As resources and cargo aren’t where they are supposed to be when they supposed to be, causing supply chains to be reshuffles to compensate.
There is an added component with Air Freight due to the current capacity limitations being experienced in the sector. Data from Xeneta suggests that global demand for air freight in June jumped 13% year to year. These two factors reinforce that air freight will take time to recover from the IT outage.
However, it seems that this may only be the case for certain airhubs with others being better prepared by having contingencies in place to deal with the exact outage that was experienced on Friday. This was the case with Heathrow Airport as “Operations quickly returned to business as usual. While some systems for some airport partners were impacted by the global IT issues on Friday morning, contingencies were put in place and flights continued to operate.”, according to a spokesperson.
As mentioned earlier the operations of sea and rail ports were minimally affected by the IT blackout this does not mean they won’t feel ripple effects in the coming days and week in these respective ports. For instance, a greater a level of congestion is likely to be experienced at most ports. Due to the lack of onward travel caused by the blackout of Friday. Although industry analysts have concluded that this disruption shouldn’t last past the end of the week.
Beyond the delays and disruptions caused by the IT blackback, it will act as a stark reminder to the whole of the supply chain industry just how vulnerable and fragile it is. With technology acting as a source of life and innovation in the industry but also be the ultimate source of its demise should it not be there, such as was seen on the Friday 12th. Underpinning the need for redundancies and alternative systems to be in place and tested frequently, thus minimising the affect of future outages on the industry,
The Need for Real-Time Data Insights
These disruptions highlight a critical need for visibility in supply chains through real-time data solutions. By implementing advanced supply chain visibility software, Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) can gain vital insights to make business-critical decisions quickly. These insights enable stakeholders to counteract impacts on their supply chains, ensuring smoother operations and greater adaptability in the face of disruptions.
Investing in technology that provides real-time data not only helps mitigate the immediate effects of such outages but also builds a more resilient supply chain capable of withstanding future challenges. As the global logistics landscape continues to evolve, the integration of robust data analytics and visibility tools will be essential in maintaining operational continuity and efficiency.