FREIGHT MARKET UPDATE | WEEK 30 | 2024
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Week 30 ushers in new challenges for the global supply chain in the form of IT outages, port congestion, and ongoing equipment shortages.
CROWDSTRIKE IT OUTAGE
The IT outage on Friday, July 19, 2024, caused by a bug in a CrowdStrike software update, is considered the largest outage in history. In the days following the outage, most industries have recovered, but the airfreight market is expected to take the longest to bounce back. Currently, planes and cargo are off schedule, with connecting flights needing reorganization based on new arrival times. Experts predict that the current global disarray will take days or even weeks to resolve fully.
CONGESTION WOES: CARRIERS OMITTING SOME ASIAN PORTS
Carriers are skipping calls to Singapore, Port Klang, and Cai Mep due to port congestion from vessel delays and bunching caused by the Red Sea crisis. As a result, more containers are being sent to Kaohsiung for transshipment. While Singapore's situation has improved, with a two-day wait, Kaohsiung's terminals are facing more pressure. Analysts expect more carriers will skip calls to Kaohsiung in the coming weeks.
EQUIPMENT SHORTAGES IMPACT USWC
Ports in the Pacific Northwest are experiencing severe railcar deficits. The Ports of Seattle and Tacoma are limiting terminal operations to a maximum of 3 gangs on vessels and 1 berth until further notice due to the lack of railcars.
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