May 2, 2022
The most pervasive outbreak of Covid-19 cases in China since early 2020 has led to quarantines, plant closures and work stoppages at several key points of export in the Far East.
The lockdown in Shanghai, China’s logistics hub, has squeezed consumer spending, limited the import of raw materials and nearly stagnated logistics and production.
The complex nature of the modern global supply chain, in combination with the snap closure of China’s largest port, has resulted a cascading array of consequences, among them a backlog of freight waiting to move into and out of the busy ports of Shanghai, Ningbo and Tianjin – ports we access on a regular basis.
The lockdown has also affected trucking companies and container inventory, sparking warnings of a deeper impact on global trade. Shanghai is slowly beginning to show signs of steady improvement, and as the delayed exports make their way to western US ports, we expect the backlogs will merely trade geography.
This disruption will last at least several months and will push MedSource, its fellow suppliers and our collective customers to navigate tremendous operational risks.
To consistently service our customers, MedSource has taken strategic steps to thrive in this time of uncertainty.
Through our efforts to diversify where we ethically source materials and products, by opting to nearshore where available and significantly investing in manufacturing that is strategically partnered with MSL – our logistics, product development and executive teams have taken a comprehensive approach to the supply chain process.
MedSource continues to adopt emerging technologies that provide the opportunity to anticipate and respond to dynamic risk scenarios based on current events.
We will continue to monitor the situation and do our utmost to keep you informed. At MedSource Labs, we realize we cannot control everything; however, we will do our very best to meet the varying needs of all who are affected by the ever-shifting tides of global logistics.
Thank you for your continued patience as together we weather the storm.
MedSource Labs is a leading medical product developer and supplier specializing in high-quality products and innovative medical product development. By delivering top-quality products and solutions at cost-effective prices, MedSource Labs has been helping improve patient outcomes since 2002. The privately held company, headquartered in Chanhassen, Minnesota, serves health care professionals including emergency medical providers, hospitals and surgical centers, veterinarian and dental providers, and government agencies. https://www.medsourcelabs.com/