Semiconductor shortage: the automotive industry strongly impacted
With increasingly sophisticated onboard systems, new vehicles require more and more electronics. Any shortage of components affects the production line, as can be seen with semiconductors, which are indispensable in the production of chips and integrated circuits.
What impact on the automotive industry?
Many manufacturers have been forced to suspend production in France and Europe. IHS Markit, an intelligence firm, estimates that 7.2 million vehicles were not manufactured owing to the lack of electronic components. According to the same study, the shortage of semiconductors should cost the automotive industry around 210 billion dollars in 2021. Delivery time frames for new cars reach 10 months in some dealerships.
What solutions are being considered?
Professionals in the sector expect semiconductor shortages to last into 2022. Stellantis chose to prioritize production of the most profitable vehicles. Renault tried to adapt and revised the manufacturing of certain models (by reducing the screen size for example). This strategy proved its worth across the Atlantic – modifying their software systems allowed Tesla engineers to use other chips and to diversify their suppliers.
Semiconductors crisis – How Air Time Critical® can help you?
In a context of changing production conditions, supply flexibility can facilitate the testing of new components. Air Time Critical®‘s OEM customers place value on short delivery times from Asia, as soon as the goods leave the suppliers’.
Mass producing parts and testing new components are the only way to guarantee short-term product adaptations and medium/long-term innovations.
The innovations currently being developed in R&D laboratories will make tomorrow’s production and success. While mass production is slowing down (due to shortages), R&D projects are racing each other in the background in anticipation of the end of the crisis. Companies that come up with the best innovations will stand out and embrace the major technological changes currently pervading the automotive industry (electrification, autonomous driving, weight savings, etc.).
Such R&D projects are therefore vital for OEMs, and Asia-Europe delivery time frames are essential. However, air freight lead times have stretched – now taking 10 to 15 days for standard express freight compared to 5 days before the crisis.
Air Time Critical® beats these extended transport times for its customers: We contact your Asian supplier before transport to agree pick-up and delivery times, we coordinate the details of the export, and work across time zones with our 24/7 operations in China and Asia. After express cab delivery to the airport, we place the urgent cargo on carefully pre-selected flights (direct flights, frequent flights with daily backup, reliable airlines), with the highest priority levels (MustGo/HeavyEquation/ZXO).
Finally, our ultimate shipment monitoring allows us to react immediately in case of unforeseen events, thus minimizing delays. Upon arrival, we anticipate import procedures and book customs duties and handling personnel. Your cargo benefits from an Ecorprio – a recovery on the plane, whenever possible. If necessary, teams work weekends and nights to collect your goods without delay. No time is wasted – we deliver to your door by dedicated express cab straight from the cargo terminal. And real-time notifications mean you can keep your colleagues, plant management and business partners informed.
With such an exceptional service provision, Air Time Critical® saves you an average of 3 to 5 days per trip compared to standard air express shipments. Your project team is guaranteed a productive week; no more days spent waiting for deliveries in transit. This is where Air Time Critical®’s expertise in emergency air transportation comes into play.
Semiconductors & Logistics emergency? Contact us today!
Need to transport parcels or pallets urgently from China or Asia to Europe? Do not hesitate to contact us or to fill in our online quote form. We will advise you on the best logistic solution for your urgent shipment.