Global aerospace logistics is facing one of the most challenging supply chain environments in history. Between post-COVID disruptions, geopolitical disruptions and ever-evolving compliance regulations, logistics executives at aerospace OEMs and suppliers are under pressure to maintain effective operations. The industry’s move towards globalization, particularly the shift of production into Asia has further complicated logistics strategies.
In collaboration with the International Aviation SME solution of China (IASC), Dimerco recently spoke with dozens of aerospace supply chain executives on their most pressing logistics challenges. Below, we summarize these challenges, and strategies for overcoming them.
For a thorough analysis of our research with aerospace industry executives, read our eBook: Aerospace Logistics in a VUCA Era.
1. Maintaining a Reliable Supply Chain when Relocating to New Markets
Ludovic Boismare, Group Director of Asia Supply Chain Development at Safran Group, explained it well: “Dual sourcing creates a more resilient supply chain in the event of disruptions.” As aerospace manufacturers diversify their supplier base, ensuring reliable supply lines is important. The industry is experiencing a shift towards China Plus One strategies, with production hubs emerging in Southeast Asia and India. However, new markets come with logistical hurdles, including freight capacity limitations, customs complexities, and increased transit times. OEMs must partner with global aerospace logistics providers experienced in local markets to ensure smooth transitions.
2. Expanding Operations into China’s Aviation Market
“Building a more localized supplier base in China will result in a more sustainable, more resilient Airbus supply chain. The company’s goal is to have all necessary parts sourced as close as possible to their production sites.” Alexis Gonzalez Chiappe, Head of Procurement at Airbus China is projected to account for 22% of global aircraft demand over the next two decades, making it a crucial market for aerospace suppliers. However, entering the Chinese market requires navigating strict certification requirements, localized supply chains, and regulatory barriers. Companies should leverage partnerships with industry clusters and established logistics providers with experience in the Chinese aerospace sector.
3. Maintaining Precise Delivery Schedules for Global Transport
“The environment is different since COVID. Delivery networks must run like clockwork.” Philippe Mechin, Sales Director, Eaton’s Asia-Pacific Interconnect Technology Division put it clearly. With an eight-year backlog on new aircraft orders, aerospace logistics operations must function like clockwork. However, disruptions such as port delays to geopolitical conflicts are inevitable. Supply chain executives must demand from their freight partners real-time shipment visibility, 24/7 troubleshooting support, and multimodal transport solutions that can adjust quickly to changing conditions.
4. Supporting Longer Aircraft Life Cycles with Efficient MRO Operations
“Aircraft can have a lifespan of 25–30 years. But many aircraft are retired from the passenger market after just 20 years operation in China. There are still a lot of potential life cycles to be used.” Mike Xu, COO of Ember China, explained. With long lead times for new aircraft deliveries, airlines and leasing companies are extending the life cycle of existing aircraft. This trend is driving increased demand for MRO services, particularly in China and Southeast Asia. Efficient MRO logistics require time-sensitive freight solutions, warehouse networks, and efficient customs clearance to avoid unnecessary downtime.
5. Managing Oversized Aerospace Components
“Some of our parts are very large, oddly shaped and require customized packing. Frankly, not a lot of logistics providers have the specialized knowledge to do this well.” Emrys Quan, Head of Civil Aviation at Hunan Xiangtou Goldsky Titanium Metal Co., Ltd., pointed out.
Aircraft engines, fuselages, and landing gear pose unique transportation challenges due to their size, weight, and fragility. Shipping oversized aerospace components requires specialized handling equipment, regulatory expertise, and routing logistics to prevent costly delays. Logistics partners must have experience in out-of-gauge (OOG) cargo transportation and access to aircraft like the Antonov An-124 or Boeing 747-8F.
How to Stay Ahead in Global Aerospace Logistics
Global aerospace logistics is evolving rapidly, presenting both challenges and opportunities. To address these complexities, it’s important to have a trusted logistics partner with expertise in the aerospace industry. As companies expand into new markets, manage backlog pressures, and adapt to shifting trade policies, the role of strategic logistics partners has never been more critical. By proactively addressing these challenges, aerospace logistics executives can ensure smoother operations and sustained growth in a dynamic global market.
For more insights and practical solutions, check out our eBook or connect with a Dimerco specialist today to discuss how we can support your aerospace logistics needs.
