Cargo disruptions increasing likely as worker shortages impact air freight and customs
Since October 6, thousands of flights have been cancelled or delayed due to the emerging workers shortage. About 13,000 air traffic controllers and 50,000 Transportation Security Administration (TSA) agents are being asked to continue reporting to work without pay, many of whom are misusing sick leave to refuse unpaid work despite being deemed essential. During the first week of the shutdown, staffing shortages and flight delays were reported at major airports in Dallas, Newark, Phoenix, Denver, Las Vegas, Indianapolis, Philadelphia, and Chicago, and at some regional U.S. airports like Hollywood Burbank Airport in California and Nashville International Airport. As the shutdown continues into its third week, impacts have expanded to four additional airports, including Orlando International, Houston George Bush Intercontinental, Charlotte Douglas International, and Austin-Bergstrom International. In Austin, a 5-hour ground stop occurred on October 13 due to an air traffic controller shortage, and nearly 2,200 flights have been delayed in the last 10 days in Charlotte for the same reason. Across all affected airports, 53% of flight delays have been attributed to the air traffic controller shortage since the start of the impacts on October 6. As new certifications for aircrafts and pilots remain frozen, concerns of further air capacity strains are mounting at these and all airports across the country.
Customs processing remains vulnerable
Customs processing also remains vulnerable to heightened disruption should the shutdown continue to mandate unpaid work. Of the impacted TSA agents, many are responsible for screening cargo bound for passenger belly or freight only flights. Notably, airports in Memphis, Tennessee and Louisville, Kentucky have reported that their cargo-focused TSA agents have been sent to work without pay, marking a vulnerability to staffing shortages should workers decide to refuse work. U.S. Customs and Border Protection (CBP) confirmed on October 1 that the agency remains operational for cargo movement, with all ports of entry being adequately staffed and only non-essential functions suspended. However, thousands of support staff are furloughed, delaying inspections and increasing customs clearance times. Importers of perishable goods like food products and pharmaceuticals are most at risk given the time-sensitive nature of the cargo and the unpredictable processing times. On October 9, delays of up to six hours were reported at the Ciudad Juárez-El Paso border crossings between the U.S. and Mexico, critical for U.S. agricultural imports of tomatoes, avocados, and berries from Mexico. At the time of reporting, delays have not been reported at U.S.-Canada border checkpoints, though bottlenecks at all U.S. points of entry are likely if the shutdown continues.
Everstream clients are receiving more detailed insights and recommendations about this risk.
Don’t miss key supply chain risk updates! Subscribe now to get supply chain news, weather updates, forecasts, and other insights.