Sometimes, we can almost view the supply chain, or the broader economy, as being a little bit like a self-sustaining ecosystem.
You know how you’re told not to stomp on bees when you’re out and about because their demise could upset the delicate balance of nature? That with fewer bees, there will be less pollination, meaning less food for other animals? Well, it would seem that someone has been stamping on our cargo pilots, as there is currently a serious shortage of them to help carry shipments. What does this mean for the industry at large, and for your business specifically? How does this compound the issues we’re already facing with the truck driver shortage?
How the Cargo Pilot Shortage Affect Supply Chain?
Short Term
Ultimately, with fewer pilots, there are fewer people to carry shipments overseas. This in turn means that prices for sending things abroad might increase, and especially where sending by sea or rail is less of an option.
There is currently a shortage of over 790,000 across the world and this is already impacting prices. The other thing to remember is that even if you don’t directly rely on items being sent by air, there is a strong chance that one of your suppliers does. It’s that whole circle of life thing again!
Long Term
You might not have noticed this change yet, or perhaps you have. Either way, there is likely currently a buffer for certain types of supplies – with stockpiles being kept in warehouses by suppliers to ensure that it’s possible to weather these types of stores.
But with time, you might start to notice a shortage of certain items. This will probably begin with items that can’t be stored for long periods – so the food industry might be hit early on, as might medicine.
It will likely begin to take longer to acquire supplies therefore, and this will in turn lead to longer waits for consumers, which will drive prices up at least in the long term as scarcity increases value, and as companies are forced to increase margins.
Why This is Happening?
One reason for the lack of pilots is simple demographics: with may pilots in their 60s, a large portion of the workforce is hitting retirement around now.
But meanwhile, the younger generation is struggling due to the huge costs associated with obtaining a pilot’s license. And due to high profile crashes, courses take longer to complete as well.
Christopher Morgan Fulfillment
Christopher Morgan Fulfillment has access to more than 600,000 square feet of professionally managed, secure, dry storage space, warehousing & distribution in Milwaukee and in all regions of the United States.
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