CrowdStrike Update Led to Disruptions in the Supply Chain

A recent update from the software company CrowdStrike raised alarms as it led to disruptions worldwide in banks, airlines, hospitals, and also in the supply chain. Although the issue was quickly resolved, the outage highlighted what can happen during a software failure. The visibility platform project44 summarizes the impacts.

(Munich) The latest update from CrowdStrike has caused widespread outages of Windows systems affecting various industries. Sectors such as airlines, banks, and hospitals reported significant interruptions. Most disruptions were quickly resolved after a correction from CrowdStrike and subsequent system restarts. However, recovery for airlines was slower. Thousands of flights were delayed or canceled. Airlines face the challenging task of rescheduling their flights and managing the backlog of cargo.

CrowdStrike’s Statement on the Update Incident

Impact on Last-Mile Logistics

The last-mile sector, which is heavily reliant on air freight due to the demand for fast deliveries, was significantly affected. The weekly on-time delivery rate for last-mile shipments remained generally constant in 2024. It fluctuated between 85 percent and 87 percent after a drop in early January, as shown in the figure below. It is important to note that punctuality is measured based on the date communicated to the customer at the time of order placement.

Given the disruptions from last Friday, delays are likely for the affected cargo. The anticipated decline in punctuality during the week of July 15 could extend into this week (of July 22). This period coincides with a peak in U.S. e-commerce activities: back-to-school season, Amazon Prime Day (July 16-17), Bed Bath & Beyond Flash Sales, the Best Buy Outlet Event, Target Circle Deals, and more, which is expected to lead to high shipment volumes.

Impact on Other Transport Modes

Although air traffic was the most affected, there were also issues with other transport modes due to the IT outages. Some port terminals, such as APM in the Port of Los Angeles, faced technical difficulties on the morning of July 19. However, these were generally resolved quickly. The trucks affected by the outage will reschedule their appointments. No major backlog is expected.

There were also minor issues in rail transport. Union Pacific reported varying degrees of disruption across its network, but freight operations continued. Some customers may experience delays, but the overall impact is expected to be minimal.

Note: The information presented here is for summary purposes only and is not legally binding. It comes from both project44 and third parties. The data from project44 does not include all available market information, and project44 does not undertake independent verification of third-party reports. Additionally, this data changes from day to day. Therefore, the reader should not rely on these reports to make business decisions. project44 and Loginfo24 expressly disclaim any liability arising from such reliance.

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