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CrowdStrike IT outage disrupts global supply chain, delays air freight

The recent CrowdStrike software bug that caused global IT outages, particularly affecting Microsoft operating systems, led to disruptions in air freight systems worldwide, resulting in grounded or delayed flights at major air freight hubs in Europe, Asia, and North America. Niall van de Wouw, chief air freight officer at Xeneta, highlighted the vulnerability of the global supply chain to IT failures, emphasizing the potential for days or weeks to fully resolve the issue.

The IT outage occurred amidst a surge in global demand, with air freight supply struggling to keep up, leading to higher costs for shippers due to limited capacity. Pete Buttigieg, U.S. Secretary of Transportation, expressed concerns about the ripple effects of the outage on transportation systems, although major urban transit systems and operational systems within the Department of Transportation were reportedly functioning.

Major freight operators like Union Pacific reported varying levels of impact across their networks, with backup protocols in place to address processing delays in customer shipments. Ports like the Port of Houston and the Port of Los Angeles experienced system outages but were able to quickly resume operations with minimal delays. However, some terminals at the Port of New York and New Jersey reported temporary delays in opening.

While not all ports use CrowdStrike software, ports like Rotterdam and Dover in the U.K. and Gdansk in Poland reported disruptions. However, with Microsoft and CrowdStrike working on a fix, the resumption of normal operations is expected to prevent significant backlogs at affected ports. Overall, the IT outage underscored the importance of robust contingency plans and the interconnected nature of global supply chains, highlighting the need for increased resilience in the face of future disruptions.

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