Jul 22, 2016

Top 10 countries with the least resilient supply chains

4 min
Top 10 countries with the least resilient supply chains
A range of threats have been taken into account in the

A range of threats have been taken into account in the 2016 FM Global Resilience Index, which is the definitive global ranking of countries’ business resilience to supply chain disruption.

FM Global is one of the world’s largest commercial property insurers and has ranked 130 countries according to nine key drivers that can affect the vulnerability of a business operating in any one of the countries. These drivers are categorised under three core resilience factors which consist of Supply Chain, Risk Quality, and Economic Factors.

FM Global believes that all loss is preventable, and has created this publicly available tool to help multinationals make more informed decisions when expanding (or expanding their supply chains) into new territories.

10) Honduras

Honduras is subject to a tragically unavoidable driver of poor performance in the rankings - its proximity to natural disaster hotspots (as well as the measures in place to tackle subsequent damage to supply chains affected by disasters.) More manmade natural disasters are also becoming a decisive risk-factor in the wake of increased illegal logging in the South American country.

9) Jamaica

Similar to Honduras, Jamaica is faced being in a disaster-prone location while having the inadequate response resources in place to adequately mitigate supply chain disruption. The Caribbean island operates under a mixed economy and has a number of infrastructure systems in place but these require more investment in order to be resilient.

8) Algeria

Algeria’s economy has been reliant on hydrocarbons for some time, which typically account for around 60 percent of government revenues. Coupled with the threat of terror and the slump in global oil price, the country’s supply chains have been subject to increasing risks which is reflected by a seven-place drop on last year’s rankings.  

7) Egypt

Egypt’s situation is similar to that of Algeria’s, although the North African nation has not suffered as much from the oil price slump due to its more diversified economy. Its business environment has been in a state of uncertainty since the revolution in 2011 but has made some recovery. Commentary from across the political spectrum is calling for an improvement in governance, institutions and human rights.

6) Ukraine

Geographically, Ukraine functions as a trade route and oil pipeline between Europe and Russia, which makes the ongoing turmoil there all the more important on an international scale. The report says: “Ukraine, already one of the biggest fallers last year, is again one of the biggest fallers this year, dropping a further 18 places. On the political risk dimension alone, Ukraine dropped from 106 last year to 128 this year, as the integrity of the country continues to be threatened by a high degree of tension from both within the country and with Russia.”

5) Mauritania

While Mauritania is home to substantial iron deposits, the African nation remains plagued by poor infrastructure connections alongside widespread poverty. The report also highlighted “poor quality local suppliers” as a factor for explaining its low ranking – a factor any supply chain manager would be wise to take serious note of. 

3) Kyrgz Republic

Corruption weighs heavily on the international reputation of Kyrgyzstan following its consistently unfavourable placing on the Corruption Perceptions Index (CPI) preceded by two revolutions in the past decade. The country itself has improved economic output in the past twenty years but it remains to be seen how serious the new government is in tackling corruption.

2) Dominican Republic

The FM Global Index highlights that Venezuela and the Dominican Republic are countries where there is a particularly strong need for investment in risk management controls and techniques. The country ranks poorly on the CPI index and sources from the World Bank has confirmed the presence of corruption up to the government level. The country is also struggling to meet its energy demands, further harming its resilience.

1) Venezuela

Alongside numerous points of correction required for its ability to avoid, manage and mitigate risk, Venezuela has been flagged by FM Global for its poor infrastructure and high levels of corruption – these factors have ensured that it has retained its bottom place for the second year in a row. The country is currently facing its highest ever levels of currency inflation amid a host of other economic woes. Hit hard by the global economic crisis and, more recently, the global oil slump, Venezuela’s infrastructure is facing chronic under-investment as a number of multinational companies slow or cease their operations in the South American nation. Venezuela is also exposed to the threat of earthquakes and damaging winds. 

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Aug 24, 2018

Top 10 air freight carriers

Supply Chain
James Henderson
5 min
Supply Chain |Digital runs down the world's top 10 air freight carriers
10. Cargolux Group

10. Cargolux Group

The Luxembourgish freight carrier Cargolux Group (comprised of Cargolux Airlines and Cargolux Italia, established in 2008) remained in the number 10 spot, with a total reported FTK (Freight Tonne Kilometer) equaling 7.45 bn, which represents a 7.7% expansion year-over-year. The carrier group currently operates a fleet of 30 aircraft (26 through Cargolux Airlines and an addition four through Cargolux Italia), primarily variants of the Boeing 747.


9. Korean Air

Headquartered in Seoul, Korean Air provides cargo and passenger services to over 100 destinations in 44 countries. The carrier fell from eighth place in the previous year’s rankings, with a total FTK of 7.66 bn, representing a 7.1% decrease year-over-year. Korean Air reported a net revenue of $10.7bn in 2017, also reporting a return to profitability for the first time in five years, according to Forbes.





 8. Air France-KLM

The Air France-KLM freight carrier group was founded in 1947. The group is comprised of Air France, KLM, and Martinair, and is based in Paris, France. Falling from seventh place in the Freight 50 rankings, the carrier reported a total FTK of 8.13 bn, which represents a 9.2% decrease in traffic year-over-year. The group reported a net revenue of $29.08bn at the end of 2017 and is ranked #28 on Forbes Magazine’s list of Best Employers.




7. Qatar Airways

Qatar Airways, the nationally owned airline of the Kingdom of Qatar is based in Doha, and ascended two places in the Freight 50 rankings, with a total FTK of 9.22 bn, representing a 19.6% increase in comparison to the previous financial year. The carrier’s Cargo division recently launched facilities at its hub in Doha to provide a “Seamless Cool Chain”, comprised of a “2,470 square metres Climate Control Centre situated at the airside… equipped with segregated temperature-controlled sections for storing pharmaceuticals and perishables.” This end-to-end supply chain control is expected to further improve Qatar’s standing as a leader of Middle Eastern air freight.







6. Lufthansa Group

Based in Cologne, Germany, the Lufthansa Group (comprised of Lufthansa, Swiss, Austrian, and Brussels Airlines) fell from the fourth position in the Freight 50, with a combined FTK of 9.46 bn. While this represents a 1.6% increase in traffic, year-over-year, the carrier was forced down the list by drastic growth from other German freight company, DHL. According to Forbes, Lufthansa’s revenue and net profits ($41.5 bn and $2.78 bn, respectively) in 2017 are both the highest reported by the company over a ten-year period.



5. Cathay Group

The Cathay Group (composed of Cathay Pacific Airlines and Dragonair) is headquartered in Hong Kong and its Cargo division accounts for 21% of the airline’s total revenue. The company’s first dedicated cargo flight between Hong Kong, Frankfurt, and London, was established in 1981, according to the official site. Now, Cathay Pacific’s Cargo Division services over 47 destinations worldwide. The carrier fell from the fourth position on the Freight 50 ranking, as its total FTK fell by 3.6%, to 10.21 bn. According to Forbes, Cathay Pacific experienced a second year of unprofitability, although the airline’s asset portfolio reached a record high in 2017, with a net value of $24.1bn.





4. DHL Express Group

Operating as the largest European carrier group, DHL Express Group (composed of DHL Air, DHL International, Air Hong Kong, Polar Air Cargo, ABX Air, Southern Air, Aerologic, and EAT Leipzig) rose two positions in the Freight 50 rankings. The carrier reported a total FTK of 10.56 bn, which represents an increase of 15.1% year-over-year. In 2018, at the Farnborough Air Show, DHL Express announced the purchase of 14 Boeing 777s, part of a new strategy to modernise its fleet.




3. UPS Airlines

Headquartered in Atlanta, Georgia, UPS Airlines is part of United Parcel Service, Inc. Founded in 1908, UPS is the oldest company in the Top Ten, and retained third place in the Freight 50 rankings, with a total FTK of 11.26 bn. This represents a 3.9% increase year-over-year. The Company as a whole reported a net revenue of $67.7 bn, according to Forbes, representing a continuation of a ten-year trend of continuous growth. Forbes also ranks UPS among the world’s top 100 most-innovative companies, and the world’s top 50 most-valuable brands.


2. Emirates Skycargo

The state-owned air freight carrier for the UAE, Emirates Skycargo remains in second place on the Freight 50, with a total FTK of 12.27 bn, representing a 0.4% decrease year-over-year. The carrier’s central hub in Dubai allows its 259-strong fleet to reach over 1.5 bn consumers in under eight hours. Current purchasing plans are underway for Emirates Skycargo to almost double its fleet size. According to Albawaba, “In response to increasing demand from its customers, Emirates SkyCargo introduced a range of air transport solutions specific to industry verticals including Emirates Pharma, Emirates Wheels and Emirates Fresh.” Emirates Wheels has transported close to 150 cars per month since the program’s inception.


1. FedEx Express

Founded in 1998, FedEx Express is both the youngest and largest air freight carrier worldwide, with a total FTK of 15.71 bn. Haulage decreased by 0.9% year-over-year, while revenue increased to $60.5 bn in 2016, and again to $63.8 bn in 2017, continuing an eight-year growth trend. FedEx employs 395,000 members of staff, with FedEx Express operating across twelve transport hubs globally. The carrier purchased an additional 24 Boeing 777 variants in 2018, maintaining their company’s position as the largest airline in terms of cargo haulage.





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