US air cargo industry faces turbulence as FAA reduces flights

The US air cargo industry is bracing for fresh turbulence as the Federal Aviation Administration’s (FAA) 10% reduction in flight capacity across 40 major airports collides with the grounding of UPS and FedEx’s McDonnell Douglas MD-11 fleets, deepening pressure on supply chains ahead of the crucial Thanksgiving and holiday shipping season. The FAA ordered airlines to cut domestic flight operations by 10% between 6 a.m. and 10 p.m. local time, citing air traffic controller shortages caused by the prolonged government shutdown. The decision affects key hubs with major parcel distribution centres — including FedEx’s Memphis and Indianapolis bases and UPS’ Worldport hub in Louisville, Kentucky, where a deadly cargo plane crash this week killed 14 people, including three crew members. This has prompted concerns about rising strain on logistics networks just weeks before the peak shopping period, as per a report.