Ash Cloud Puts Spotlight on Supply Chain Risk

Potential for Delays Likely to Last for Weeks After Flight Ban Ends

The shutdown of airspace in the last week has created supply constraints in European automotive factories, particularly at the tiered supplier levels, with the impact being felt as far as the US and Japan for BMW and Nissan respectively. Manufacturers have resorted to emergency transport, including expensive air charters, to avoid production delays. And with a freight backlog of up to two to three weeks, and the potential for further disruptions, the industry faces continued uncertainty.