
Article content
NEW YORK (AP) — The UPS cargo plane crash on Tuesday at the company’s global aviation hub in Kentucky, which killed at least 12, will temporarily disrupt the supply chain and result in some shipping delays.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
But UPS says it has contingency plans in place, and experts say the impact should be cleared up before the peak holiday season.
Article content
Article content
The plane crashed Tuesday evening as it was departing for Honolulu from UPS Worldport, UPS’ largest shipping hub, at Louisville Muhammad Ali International Airport. Package sorting at the center was halted late Tuesday and the halt continued on Wednesday. About 416,000 packages can be sorted at the facility per hour, according to a UPS fact sheet.
Article content
Article content
UPS has not released any details about how many and what type of packages were on the plane.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
Ed Anderson, a professor of supply chain and operations management for the McCombs School of Business at the University of Texas, estimates the average number of packages per plane leaving the Louisville shipping hub is 10,000 to 13,000.
Article content
Consumers who want to check on their UPS packages can wait to hear from the company or look up tracking details online. UPS has a claims process for lost or damaged packages, but it is unclear if people and businesses with packages on the downed plane will have to go through that process. UPS will likely reach out to affected customers in coming days. They did not respond to a request for comment.
Article content
Tom Goldsby, professor of supply chain management at the University of Tennessee in Knoxville, said UPS will most likely step up flights to its regional hubs to offset Worldport’s closure.
Article content
The hubs are “going to take on a greater burden until that critical operation in Louisville gets back to the full capacity,” he said.
Article content
UPS said in a statement that it has contingency plans in place to help ensure that shipments arrive at their final destinations as quickly as conditions permit, but did not give specifics on what the plans were.
Article content
Article content
Goldsby said UPS will be under pressure to resolve any delays before the peak holiday season.
Article content
“It’s an issue that they quickly want to resolve, but they are going to have to do their due diligence in resolving the current crisis,” he said.
Article content
He himself was expecting a UPS package from Oregon routed through Worldport today, but got a message that it would have to be rescheduled.
Article content
“I understand the circumstance and will gladly receive it when it arrives,” he said, adding patience will be needed for others expecting packages. “People and businesses don’t have a lot of understanding (about the supply chain). We just don’t expect our logistics operations to have a calamity or even a bad day.″
Article content
The crash comes as UPS works on a turnaround, focusing less on Amazon deliveries and more on business-to-business deliveries. In its most recent earnings report last week, the company said it has cut 48,000 jobs in the year to date and closed some buildings as part of its turnaround. Its third-quarter results beat expectations.
Article content

3 hours ago
2
English (US)