Rolls-Royce Supply Chain Issues Strike Again

Rolls-Royce is struggling with persistent supply chain issues that are impacting its engine production and maintenance schedules, forcing British Airways (BA) to cancel flights on one of its most popular transatlantic routes. Starting December 12th, British Airways will suspend all flights between London Gatwick and New York’s JFK Airport until March 25, 2025, in response to the engine shortages. The airline cites logistical bottlenecks within Rolls-Royce’s supply chain as a key factor driving this decision.

The supply chain issues stem from a combination of raw material shortages, logistics challenges, and delays in the global delivery of engine components. Rolls-Royce, which supplies engines for BA’s long-haul aircraft, has been unable to meet rising demand due to constraints in sourcing critical materials like titanium and specialized electronic components. The company’s supply chain delays are affecting its ability to deliver new engines and complete necessary maintenance on existing ones, forcing BA to make operational adjustments.

British Airways expressed regret over the cancellation of flights, acknowledging the disruption this will cause for passengers, particularly during the busy holiday season. In a statement, the airline said, “We understand the inconvenience this decision will bring to our customers, but we are committed to minimizing any potential disruptions in our wider network as Rolls-Royce works to resolve the engine supply constraints.”

The logistical issues at Rolls-Royce extend beyond production to affect global transportation networks. Transportation of engine parts from manufacturing centers has been impacted by delays at major ports, compounded by a global shortage of freight space and skilled logistics personnel. This is causing a ripple effect that has slowed the assembly and distribution of engines for critical routes. The logistical logjam has hindered Rolls-Royce’s ability to meet the maintenance schedules BA requires to operate its transatlantic fleet, particularly affecting the Boeing 787 Dreamliners, which rely on Rolls-Royce’s fuel-efficient engines.

A Rolls-Royce spokesperson told us: “We take the industry-wide issue that the aerospace supply chain is currently dealing with extremely seriously. We’ve introduced a number of initiatives to reduce the impact on our customers. We’ve already introduced measures that allow us to respond more quickly to issues, such as integrating our Procurement and Supplier Management teams, sharing our own raw material stocks to tackle shortages, and hiring people to work in supplier organisations; one of our most impacted suppliers currently has almost 50 Rolls-Royce supply chain staff dedicated to driving their recovery.”

“These changes are already having a positive impact. So far this year, we’ve increased Trent 1000 supply chain output by a third, making more components available and minimising the time engines spend in our Maintenance, Repair and Overhaul (MRO) centres. We’re confident that these bold changes coupled with our long-term investment plans will provide continuous improvement for our customers. In addition, our first stage Durability Enhancement package for the Trent 1000 is in the final stages of certification and will more than double engine time on wing, while a second package of enhancements will deliver a further improvement of up to 30%.”

“Whilst this is not an MRO capacity issue, we know that demand will increase in the future. So, we have allocated additional investment this year to ensure we can meet that demand, creating some short-term surge capacity and allowing us to approximately double our MRO capacity by 2030. This will ensure scheduled maintenance, such as that of the British Airways Trent 1000 fleet, can be conducted as efficiently as possible.”

To mitigate further disruptions, British Airways is rerouting some aircraft and adjusting maintenance schedules for other key transatlantic routes. However, the Gatwick-JFK route was identified as the most feasible to suspend temporarily, with BA hoping to reinstate the route by late March once supply chain stability is restored.

Impact on Cargo Operations

The supply chain disruptions at Rolls-Royce are not only affecting passenger flights but are also having a notable impact on cargo operations. With fewer engines available for maintenance and replacement, cargo planes that use Rolls-Royce engines are also experiencing delays, exacerbating issues in global logistics.

Cargo flights, particularly those that transport high-value or time-sensitive goods, are now facing potential delays as maintenance timelines for Rolls-Royce-powered planes are stretched. This challenge has introduced additional uncertainty in an already pressured global logistics system, which has seen demand spikes due to increased e-commerce activity and seasonal holiday shipments. The limitations have forced cargo operators to reconfigure routing and adjust freight schedules to minimize disruptions to supply chains reliant on timely delivery.

Moreover, freight forwarding companies that depend on reliable transatlantic cargo services are now dealing with increased costs due to limited cargo space, as fewer available aircraft intensify competition for slots. For businesses relying on air freight to move high-demand items—such as electronics, pharmaceuticals, and perishable goods—these delays can lead to supply shortages, price increases, and missed delivery deadlines.

Broader Implications for the Industry

Industry experts warn that the Rolls-Royce delays reflect broader issues in the aerospace sector, as companies grapple with post-pandemic demand surges and logistics backlogs. With many components needing precision engineering and long-distance shipping, the aerospace industry is especially vulnerable to supply chain breakdowns. Analyst Ian Campbell from Aviation Logistics Group explains, “The challenges Rolls-Royce is facing are significant, as aerospace supply chains are finely tuned. Even minor disruptions can escalate into major logistical challenges.”

This incident is prompting British Airways and other airlines to explore diversifying engine suppliers and maintenance partners to reduce dependency on single sources. It also raises questions about supply chain resilience in the aerospace industry, with many advocating for increased investment in logistics technologies and multi-source supply chains to buffer against future disruptions.

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How to Anticipate Supply Chain Issues

Every industry, from retail to construction, relies on its supply chain for processes and operations to be successful. But with so many moving parts throughout, challenges arising can have a huge impact on the flow of deliveries. This is why it’s important to identify challenges before they grow into a much larger issue.

Wincanton, experts in infrastructure logistics, have provided insight into how to anticipate issues within the supply chain. This means that industries can be proactive about appropriately preparing and addressing them.

The early signs of disruptions

There are many ways that disruptions can occur in supply chains, like natural disasters. With some of the more common disruptions, there are warning signs that you can recognise early with key indicators:

Demand fluctuations

When there are unexpected and fast changes in demands from consumers, clients, or partners for a product or service, it can massively impact stock and delivery schedules throughout the supply chain. This can result from a particular seasonal demand or an emerging trend encouraging more investment.

Unstable suppliers

Supplier stability can be a massive issue throughout supply chains, with financial concerns such as missed payments. Another indicator can be breakdowns in communication with said suppliers.

Transport delays

Whether it’s traffic and route issues that are key to logistics, or lead times increasing, there are plenty of red flags that you can catch early. These disruptions can have a huge impact later down the supply chain.

Geopolitics

Politics can have a significant impact on supply chains, with relationships between countries and their trading and regulations massively affecting transport across borders and markets.

Proactively assessing the risks

Taking risk assessment seriously and proactively by implementing technologies and insights into supply chain processes can help stay ahead of disruptions and concerns with data-driven decision making.

Predictive analytics

Many companies may not realise they have existing data from within their industry of trends, fluctuations, and disruptions that regularly occur. By analysing that data for where particular sticking points are, businesses can make informed decisions and set up adaptable strategies that can flex according to needs.

Collaborative technology

Cloud-based systems have opened the doors of collaborative technologies that provide instant communication tools and offer transparency throughout the supply chain. Making the appropriate investments in collaborative tech can provide seamless communication as well as data and file sharing between businesses, stakeholders, and partners.

Visibility

Knowing where products and materials are within your supply chain relies on end-to-end visibility, which can be solved through effective tracking and monitoring. This can help identify where orders are and adjust to any challenges, thus preventing escalation.

Supply chain resilience, Diversifying

By diversifying the suppliers used and worked with, as well as optimising transport routes, it cuts down on the reliance on a singular source or region. This offers an alternative in the face of challenges that weren’t forecast.

Rolling monitoring

Through monitoring systems being incorporated, more accurate data on performance, trends, and the health of the supplier is produced. Having up-to-date information on the supply chain, as well as regular updates, helps keep strategies ready for change and evolution.

Flexible response strategies

A flexible response strategy is important for dealing with supply chain disruptions, as many issues can still occur despite analysis of the market and trends that occur. Having plans in place that can respond quickly and effectively can make a world of difference. The importance of anticipating and reacting to supply chain disruptions cannot be overstated, which is why proactive analysis and risk management should be prioritised to identify and prevent any stalling.

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Industry View: Secure Your Supply Chain Now to Beat Disruption

 

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