What: A global IT outage caused by a Microsoft cloud computing glitch grounded thousands of flights and disrupted air cargo and port operations worldwide.

Why it is important:  The outage has significant implications for global supply chains, exacerbating existing pressures on air cargo capacity and potentially causing prolonged delays and congestion in freight movement across sea and land.

A global IT outage triggered by a Microsoft cloud computing glitch disrupted air travel and cargo operations worldwide on Friday. Major airlines, including American, Delta, and United, paused their flight schedules, affecting cargo handling at global airlines such as Air France-KLM and Lufthansa. The outage, caused by a faulty update from cybersecurity firm CrowdStrike, also impacted major ports, including those in Los Angeles, Long Beach, and the UK's Port of Felixstowe. While some operations have resumed, the fallout is expected to take days or weeks to fully resolve, with potential delays in cargo processing and increased congestion at ports and airports. FedEx, UPS, and Union Pacific have implemented contingency plans to mitigate the impact.

Global IT outage disrupts air cargo supply chain and major ports