On the evening of July 18, global transportation operations faced disruptions due to a widespread computer outage triggered by a software update glitch from cybersecurity firm CrowdStrike. Important to note that this was a not a security breach or cybersecurity incident that was the cause.
As we delve into the implications and aftermath of this outage, it becomes clear that resilient contingency plans and robust IT systems are important for safeguarding supply chains against such disruptions in the future.
What, If Any, Impacts to the Supply Chains?
While some freight was impacted, most of the impacts were rather minimal. Air freight saw the brunt of it, as many airline grounded all flights, causing serious delays and cancellations. Additionally, around 27,000 flights were delayed last Friday from various airlines and almost 3,000 flights were cancelled, Freightwaves reported.
Port Houston did report to have experienced “minimal delays”. However, vessel operations remained unaffected, truck gates experienced a brief closure of approximately three-and-a-half hours, reopening shortly before 9am East Coast time on July 19.
Out west, the Port of Los Angeles experienced disruption at one of its seven container terminals due to the overnight outage, Philip Sanfield of the port confirmed to Supply Chain Brain, but terminals functioned normally the following day.
Furthermore, on the east, the Port Authority of New York and New Jersey confirmed to Supply Chain Brain that their operations were not directly impacted by the software glitch. But some tenants at the port experienced delayed gate openings, and some airlines experienced delays and cancellations.
Union Pacific did see some impacts across their rail operations along their freight network. However, those operations were fully restored by the afternoon of July 19, per a customer advisory from UP.
Things to Learn From These Incidents
Some lessons shippers and those alike can learn from this tech outage.
Risk assessment and management – It’s essential for shippers to regularly assess and manage risks associated with their technology dependencies. This includes identifying potential vulnerabilities and implementing measures to mitigate them.
Communication and transparency – Maintaining clear and transparent communication with partners, suppliers, and customers during an outage is vital. Shippers should have protocols in place to keep stakeholders informed and manage expectations.
Post-incident analysis – shippers should conduct a thorough post-mortem analysis to understand root causes and identify areas for improvement; figure out what went well and what did not go as well. Learning from incidents helps in refining strategies and enhancing preparedness for future disruptions.
By embracing these lessons, shippers can enhance their resilience, reduce operational risks, and better navigate challenges posed by technological disruptions in the future
Related: Being prepared and proactive when dealing with emergency or unexpected events
Looking Ahead
In conclusion, the recent global tech outage underscored the critical importance of resilient contingency plans and robust IT systems in safeguarding supply chains against unforeseen disruptions. While the impact varied across transportation sectors, from air freight delays to minor interruptions at ports and rail operations, the incident serves as a poignant reminder for shippers to prioritize risk assessment, communication, and post-incident analysis.
Should you have any questions regarding this, please reach out to our team today. Additionally, we have our weekly market updates that provide freight news, updates, and other developments across the international shipping industry.