UPS Missed Warning Before F-35 Parts Reached China, Report Says

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A UPS employee missed an email warning against routing F-35 fighter-jet components through Hong Kong, according to newly reported details of a shipment that ended up in Chinese hands. The account raises questions about how shipping companies communicate and enforce restrictions on military cargo moving through international supply chains.

Bloomberg reported the missed warning on October 7, citing a person briefed on the incident. The shipment contained a cockpit canopy and a weapons-bay door coated with radar-absorbing material, according to the report. The components were being returned from Australia to the United States in late May for inspection and possible repair or disposal.

Freight forwarder DSV, working on behalf of F-35 manufacturer Lockheed Martin, had emailed instructions stating that the cargo could not pass through certain countries under U.S. arms-export restrictions. The warning may have reached a different computer system from the one used by the UPS employee handling the shipment, Bloomberg’s source said.

The planned route took the parts to San Francisco through South Korea and Taiwan. After the shipment fell behind schedule, it was rerouted through Hong Kong to save time, according to the account.

The missed-email explanation remains attributed to an unnamed source. Public statements confirming an investigation do not independently establish every detail of that explanation.

The diversion had already become public in September. Australian authorities acknowledged that F-35 components had reached Hong Kong and said they were assisting the United States and Lockheed Martin in investigating what happened.

Officials have offered cautious assessments of the potential security consequences. The Pentagon described the components as unserviceable. Australian Defence Minister Richard Marles said on September 22 that his understanding was that the shipment did not contain sensitive equipment, while leaving the definitive assessment to the United States and Lockheed Martin.

Those statements do not establish what information, if any, could be obtained from the parts. The available public record does not resolve that question.

Lockheed Martin said it was working with logistics partners to strengthen oversight and prevent another incident. The F-35 Joint Program Office has also said it is working with authorities and industry partners to recover the components, investigate the shipment and introduce safeguards.

The case comes amid longstanding concerns about accountability within the fighter’s spare-parts network.

A May 2023 Government Accountability Office report found that the F-35 program office did not maintain its own complete tracking records for government-owned spare parts held at certain contractor facilities. Prime contractors maintained that information instead, leaving the government without the records needed to reliably establish locations, quantities and costs.

The watchdog identified more than one million parts recorded as lost, damaged or destroyed by one contractor since May 2018, with a combined value exceeding $85 million. The program office had reviewed fewer than 2% of those losses. Those figures describe historical inventory-management findings; they are not an estimate of the value or damage associated with the Hong Kong shipment.

GAO also found more than 19,000 parts awaiting disposal instructions as of October 2022, some for as long as five years. Its recommendations addressing accountability, loss reporting and disposal remained listed as open in September 2026.

For contractors and freight companies, the unresolved operational question is how a restricted shipment could be rerouted despite a warning. If investigators substantiate the reported explanation, they will need to determine how routing instructions were transmitted, received and applied before the itinerary changed.

Congressional scrutiny is continuing. According to Bloomberg’s reporting, summarized by Anadolu, Pentagon officials briefed House Foreign Affairs and Armed Services committee staff on September 29, and a State Department export-control official said the department was investigating.

The outstanding issues are whether the components can be recovered, what information they may have exposed and which safeguards will prevent another diversion.

JBizNews Desk | Washington, D.C.

© JBizNews.com. All rights reserved. This article is original reporting by JBizNews Desk. Unauthorized reproduction or redistribution is strictly prohibited.

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