Security & Supply Chain: Crimean Crisis Impacts Global Supply Chains
by Sterling J. Scott, Marketing Communications Coordinator, MHI | @mhi_sterling
Airlines around the world are adjusting their flight routes to avoid flying over Ukraine after the downing of Malaysian Airlines Flight 17. Flights between Europe and South Asia will have to fly around Ukraine through through Russian or Romanian airspace. This may affect global supply chains as it may lead to increases in the cost of shipping by air and the time it takes to do so.
The flight path over Ukraine, L980, is one of the most busiest in the world. Now, airlines around the world are avoiding it as a security precaution, with most choosing to fly over Romania instead.
“L980 is a key link between major international hubs in Europe, such as London Heathrow, Amsterdam Schiphol, and Frankfurt, and Asian megacities, like Singapore, Mumbai, and Hong Kong. The airspace over Ukraine is traveled by virtually every commercial flight from Western Europe to south Asia.” – Business Insider, 7.17.14
All businesses need supply chains that are responsive, to minimize the impact of supply chain disruptions. Whether due to violent conflict such as the Crimean Crisis, other civil and political unrest and violence, weather conditions, or natural disasters, companies should have strategies, tools, and equipment to be responsive.
To discover solutions to make your supply chain more responsive and connect with the companies that can provide them, visit www.mhi.org.
