Airfreight delivery of auto parts could become a fixture

Auto parts suppliers relying on air freight to make timely deliveries could become a common practice in the future, industry watchers say, as the COVID-19 pandemic has disrupted the world's supply chains.

As sea freight congestion has made deliveries unreliable, auto parts and even newly produced vehicles would become common passengers on air freight for market launch.

Since early 2020, vehicle supply issues have become a long-standing problem in the industry as lockdowns across Europe led to European brands halting production. In addition, the reopening of economies has also led to congested harbors, leading to the delayed arrival of new vehicles in Taiwan.

Ford Lio Ho Motor told local media that the automotive supply chain's complexity makes for difficult deliveries of the complete product, as a missing part would halt assembly progress.

In 2020, auto parts were in short supply, while in 2021, automotive-use chips saw severe shortages despite their hot demand as vehicles have become smarter and require more chips to operate. In addition, the smarter and higher-tiered the car in production will need more chips, an issue exacerbated due to the popularity of electric vehicles.

In other countries, some auto suppliers have chosen to maintain production output while opting for flexible measures, such as waiting for chips to arrive before contacting clients to be vehicle assembly. However, the biggest downside of this measure is the inherent uncertainty, leading to fewer suppliers in Taiwan taking this approach.