A UPS cargo plane crash, which killed nine, will temporarily disrupt the supply chain and likely result in some shipping delays.
UPS issued a statement saying, “We are engaged with the National Transportation Safety Board’s investigation of the accident and are staying in close contact with the Federal Aviation Administration. We will work tirelessly with state and local authorities on response efforts. As a result of the accident, we are halting package sorting operations tonight at Worldport.”
The plane crashed as it was departing Honolulu from UPS’ largest shipping hub Wolrdport. 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.
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 specific details on what the plans were. The crash comes as UPS works on a turnaround. In its most recent earnings report last week, the company said it has cut 48,000 management and operations jobs to date and closed daily operations at 93 leased and owned buildings during the first nine months of this year.