Heathrow Airport Closure: The Supply Chain Impact
Heathrow Airport will remain closed until around midnight on Friday (21 March) due to a fire at nearby electrical substation.
The blaze, at a substation in Hayes, West London, which supplies power to Heathrow, is set to result in the cancellation of more than 1,300 flights to and from the airport.
Passengers have been advised not to travel to the airport, while cargo operations are also facing severe disruption.
In a statement, the airport said: "Due to a fire at an electrical substation supplying the airport, Heathrow is experiencing a significant power outage.
"To maintain the safety of our passengers and colleagues, Heathrow will be closed until 23:59 on 21 March.
"Passengers are advised not to travel to the airport and should contact their airline for further information. We apologise for the inconvenience."
An 'unprecedented event'
Heathrow is the UK and Europe's busiest airport and has not been impacted to such a degree since 2010, when the eruption of an Icelandic volcano sent a huge plume of ash into the atmosphere – bringing aviation across much of Western Europe to a standstill.
The fire at North Hyde substation is thought to have broken out just after 11pm GMT on Thursday night. Two explosions were heard and around 70 firefighters were sent to tackle the blaze.
Thousands of homes in the area were left without power, although this has since been restored to the vast majority. However, around 5,000 homes remain without power and around 150 people have been evacuated from properties nearest to the substation.
Speaking to BBC television on Friday morning, UK Energy Secretary Ed Miliband said the fire appeared to have knocked out a back-up a generator in addition to the substation itself, causing a huge power outage at Heathrow Airport.
Calling it an "unprecedented event", he added: "We will have to look hard at the causes and also the protection and the resilience that is in place for major, major institutions like Heathrow."
Meanwhile, affected passengers have been advised to contact their respective airlines for further information.
The impact on air freight
Heathrow Airport is the UK's largest port by value and handles more than 1.6 million metric tonnes of freight every year.
In 2023, it handled more cargo than all other UK airports combined and saw a staggering £198.5bn (US$256.9bn) pass through.
As of mid-2024, Heathrow had a vast network of almost 250 destination across more than 85 nations and regions.
With aviation at Heathrow grinding to a halt, concern over the impact on goods requiring specialist transportation and with a limited shelf life, such as pharmaceutical supplies and food perishables, is growing.
However, Matt Parkinson, Managing Director of Supply Chain Solutions UKIN at UPS, issued an update via LinkedIn, stating that ground operations were currently unaffected.
"London Heathrow Airport is closed until at least midnight tonight," he said. "UPS Supply Chain Solutions remains fully operational with deliveries and collections proceeding today as scheduled. We are recovering import volume that has already been unloaded by airlines.
"Customers will be kept informed via our operational teams and account managers, but if you have specific questions please reach out to your local contact.
"As ever in a contingency, I’m grateful for the resilience of an unmatched global network and the experienced UK team led by James McLean."
John Manners-Bell, CEO of Transport Intelligence and Founder of the Foundation for Future Supply Chain, called the situation "deeply frustrating".
"London Heathrow is critical to the UK's economy, both in terms of passenger and cargo volumes," he said. "The risk of disruption to this transport node is well known and something that I and many others have been writing about for years.
"Surely the government must have taken an interest in its vulnerability – even if the airport owners didn't have their own back-up plans in place to mitigate risk? A fire at a single power sub-station bringing one of the world's busiest airports to a complete halt? Someone has been asleep at the wheel.
"I imagine it will take days for the chaos to be resolved – and look for unknown risks – such as the inter-connection between energy and Heathrow's ICT networks."
Dr Florian Lücker, Reader in Supply Chain Management at Bayes Business School in London, said the Heathrow incident should serve as a wake-up call to companies without robust disruption mitigation strategies.
He continued: "Given its importance to the national and international economy, the fire at Heathrow raises important questions about how risks are managed, not just by the airport and its frustrated passengers, but by businesses that rely heavily on it for supply chain efficiency."
“The airport’s closure and electricity outage, however temporary, will cause disruptions for the flow of goods in global supply chains. Businesses must have robust risk management responses in place.
“These include business continuity teams that can plan contingencies and find alternative transportation routes or supply channels. Companies failing to have these processes in place may experience some stock-outs which could ripple through the supply chain, as well as additional costs of interrupted goods flow, idle machinery and workers who cannot complete their jobs.
“While such incidents cannot be avoided, savvy businesses should simulate incidents like a power outage at a major airport to take quick decisions in case a real disruption like this occurs.”
Explore the latest edition of Supply Chain Digital Magazine and be part of the conversation at our global conference series, Procurement & Supply Chain LIVE.
Discover all our upcoming events and secure your tickets today.
Supply Chain Digital is a BizClik brand.
