FAA reduces domestic flights by 10% amid shutdown, raising fears of holiday air cargo delays

The Federal Aviation Administration (FAA) has ordered a 10% cut in domestic flight capacity at 40 major U.S. airports due to the ongoing federal government shutdown — a move that could ripple through the country’s logistics network just as the crucial holiday shipping season begins.

The reduction affects several airports that serve as critical air cargo and parcel distribution hubs, including Memphis and Indianapolis for FedEx, and Louisville, Kentucky — home to UPS’ Worldport, the company’s largest global hub and the site of this week’s fatal MD-11 cargo plane crash that killed 14 people, including three pilots.

In response to the tragedy, UPS and FedEx announced late Friday that they are temporarily grounding their fleets of McDonnell Douglas MD-11 aircraft “out of an abundance of caution.” The MD-11 model represents about 9% of UPS’ total fleet and 4% of FedEx’s, further tightening available cargo capacity.

While logistics companies have downplayed the risk of immediate delays, analysts warn that the combined impact of FAA flight restrictions and grounded aircraft could create serious bottlenecks in the weeks ahead.

The FAA’s directive applies to scheduled domestic operations — both passenger and cargo — between 6 a.m. and 10 p.m. local time at each affected airport. While the order doesn’t explicitly target freight services, it indirectly impacts them, as much of the nation’s air cargo moves aboard passenger aircraft in addition to dedicated freighters.

Though the flight reduction currently excludes international routes, the slowdown could still ripple across global supply chains, given that air transport accounts for about 35% of world trade by value despite representing only 1% of total trade volume, according to the International Air Transport Association (IATA).

With both reduced flight capacity and grounded fleets in play, industry observers caution that the holiday cargo crunch may intensify unless normal operations resume quickly.