Update on supply surety during ongoing geopolitical volatility

The escalating conflict in the Middle East has resulted in ships from Europe being rerouted due to the reported closure of key shipping channels via the Strait of Hormuz, as well as localised issues surrounding the Suez Canal.

HSV's focus is on delivering better patient outcomes with our health service customers, including by safeguarding product supply to reduce health service risk.

While the rerouting is not expected to have a direct impact on all European supply operations, it may affect the availability and scheduling of vessels which could in turn influence lead times.

We know from supply disruptions in previous years that rerouting can add 10-14 days to usual shipping times, however, the real disruptor is the flow-on effect of congestion at ports in Asia.

At HSV, we have implemented our supply chain surety procedures in response to the conflict. We are currently contacting all of our suppliers with country-of-origin products in Europe and the Middle East to determine how their supply may be impacted.

At this stage, the likely effect on local supply remains uncertain – some carriers are continuing to operate as normal, while others have opted not to transit the affected region.

Shipping companies are assessing impacts on time and cost resulting from the Middle East disruption. We will continue to monitor the situation with our suppliers and provide updates as the supply outlook changes. If health services receive any feedback from suppliers, please let us know as soon as possible via the Customer Engagement team.

In the meantime, we request that health services do not order excess products in response to the conflict.