What is Happening in the Red Sea?
We are writing to keep you informed on the crisis occurring in the Red Sea and update you on how your business could be impacted.
Over the last few months, multiple attacks have been carried out against large cargo vessels in the Red Sea. Earlier in March, a Houthi missile struck a commercial ship in the Gulf of Aden, killing three of its crew members and forcing survivors to abandon the vessel.
Last month, another cargo ship carrying fertilizer, the Rubymar, was damaged by multiple missiles and sank after drifting for several days off the coast of Yemen.
The Red Sea is the entryway to one of the most important east-to-west shipping routes for cargo, the Suez Canal. Attacks like the ones referenced above have caused nearly all major sea carriers to re-route around the southern tip of Africa – adding weeks, thousands of miles and additional costs to the journey.
Turning to Air Freight to Meet Deadlines
To confront the ongoing shipping delays by sea, many manufacturers are turning to air freight to meet deadlines. As a result, air freight availability is down and prices have increased.
Freight forwarders are reporting delays of at least a week to 10 days when booking air freight and a minimum of 10 to 20 days by sea from many of the affected geographies.
MedSource Labs has been monitoring the situation closely since the end of last year and has contingencies to keep the supply of products flowing into distribution warehouses and medical facilities throughout the US and beyond.
MSL leadership has been in regular contact with policymakers in Minnesota and Washington, DC and will continue to lobby in the best interests of its customers.
We hope you find this information useful and suggest you use the resulting anticipated timelines to manage your planning and scheduling for the rest of 2024.
Please keep following MedSource Labs on social media for updates on the Red Sea and other newsworthy events.
