"Several airports with major package distribution centers are on the list of airports that will reduce capacity - FedEx has hubs at the airports in Indianapolis and Memphis, Tennessee. UPS' biggest hub, Worldport, is in Louisville, Kentucky, the site of this week's deadly cargo plane crash. Meanwhile, UPS and FedEx said late Friday they're grounding their fleets of McDonnell Douglas MD-11 planes "out of an abundance of caution" following a deadly crash at the UPS global aviation hub in Kentucky."
"The crash Tuesday at UPS Worldport in Louisville killed 14 people, including the three pilots on the MD-11 that was headed for Honolulu. MD-11 aircrafts make up about 9% of of the UPS fleet and 4% of the FedEx fleet, the companies said. Logistics companies say consumers shouldn't expect delays on their packages due to the reduction in flights - for now. But they put a strain on the supply chain ahead of the all-important holiday shopping season."
"Patrick Penfield, a supply-chain management professor at Syracuse University, called the 10% reduction in flight capacity and the grounding of the MD-11 planes a "one-two punch" for cargo carriers and shoppers. "This is such a stressful time for both companies, and you've got this surge in demand and then you just lost some of your capacity," Penfield said. "So they're already scrambling as it is during the holiday season, and they're going to scramble even more.""
Major U.S. package hubs will reduce domestic flight capacity following a deadly UPS cargo-plane crash in Louisville that killed 14 people. UPS and FedEx grounded their McDonnell Douglas MD-11 aircraft as a precaution; MD-11s comprise about 9% of UPS's fleet and 4% of FedEx's. Logistics providers currently expect no immediate widespread package delays, but the combined capacity reduction and MD-11 groundings increase strain on the supply chain ahead of peak holiday shipping. Supply-chain experts warn that peak-period deliveries could be delayed by a day or two and recommend ordering gifts early.
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