Team - Things are rapidly evolving in Europe as Russia advances on Ukraine. There will be impacts to aviation that could be far reaching but we do not know to what extent at this time. /1
What we do know is that the FAA and EASA have issued a NOTAM (Notice to Airmen/Air Missions) that essentially places all of Ukraine and Russian air space off limits to commercial flights due to severe safety risks. /2
We all know what happened to the Malaysian 777 several years ago that was shot down in the region a few years ago. All flights between Asia and Northern Europe will need to be rerouted via new southerly routings over Saudi Arabia and these are happening real time. /3
The result will be extensive delays and potential cancellations as airline’s grapple with this new reality of airspace. For example, our new far east west-bound freighter service from Hong Kong to Maastrict has been delayed several hours as the flight was rerouted over /4
the Middle East to avoid all Russian airspace. We will keep everyone updated but feel free to copy this message and send it to your customers. /5
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Ukraine and Russia are major players in the air cargo market, and not just because their locations put them on the most direct flight routes from Asia to Europe. 🧵👇
Antonov is a Ukranian aircraft manufacturer, makers of the largest cargo airplane in the world, the Antonov An-225 and it's smaller but still huge cousin, the Antonov An-124. /1
The world's only An-225 was reportedly destroyed on the ground at Hostomel airport yesterday, a tragedy for aviation enthusiasts everywhere. /3 heraldscotland.com/news/19950717.…
The decline in ships waiting just offshore of Los Angeles/Long Beach continues to be touted as a sign that port congestion is easing — despite the fact that the true number of waiting ships has not actually declined.
The ports just made the ships wait out at sea to avoid air pollution in LA. The overall queue, including container ships waiting out at sea is larger than ever.
"The total — 94 — was just shy of Monday’s all-time record of 96 (including ships outside the SAQA), and up 27% from the count on Oct. 25."
Global supply chains are a mess. The world's logistics infrastructure has proven incapable of scaling to the demands of a global economy going through more chaotic evolution than ever. 1/
Prices for pretty much all logistics and supply chain services have reached all time highs while service levels and transit times have never been worse. 2/
In hindsight, the signs were there for years. Almost no logistics companies can show you where your freight is in real-time on a map. Most data is exchanged in unstructured email messages with attachments. There are almost no logistics APIs to speak of. 3/
Tomorrow the new fees for not picking up your containers on time at the Ports of LA-Long Beach go into effect. The fees go up by $100 everyday, so by Day 30 charges reach $46,500 per container. 1/n
In my tweetstorm last week I called out all the reasons that it was so challenging for importers to find available chassis and get appointments to pick up containers at the port.
This new 'emergency fee' punishes importers for a problem totally outside their control. Brands need the merchandise for the holidays. They would LOVE to come get those containers. 3/n
What caused all the supply chain bottlenecks? Modern finance with its obsession with "Return on Equity."
To show great ROE almost every CEO stripped their company of all but the bare minimum of assets. Just in time everything. No excess capacity. No strategic reserves. No cash on the balance sheet. Minimal R&D.
We stripped the shock absorbers out of the economy in pursuit of better short term metrics.
Yesterday I rented a boat and took the leader of one of Flexport's partners in Long Beach on a 3 hour of the port complex. Here's a thread about what I learned.
First off, the boat captain said we were the first company to ever rent his boat to tour the port to see how everything was working up close. His usual business is doing memorial services at sea. He said we were a lot more fun than his regular customers.
The ports of LA/Long Beach are at a standstill. In a full 3 hour loop through the port complex, passing every single terminal, we saw less than a dozen containers get unloaded.