Medical ventilator manufacturer Drägerwerk sees the potential for a significant shortfall between demand for ventilators and supplies globally, the Financial Times reports. The firm’s CEO, Stefan Dräger, has stated that “the largest part of production capacity for ventilators is in Europe, while the biggest problem appears to be in the US“.

As outlined in Panjiva’s research of March 20, the potential shortage of medical equipment and supplies has led the U.S. government to activate the Defense Procurement Act (DPA) to allow the government to prioritize purchases either from overseas or domestically.

The first use of the DPA has come from the issuance of an order to General Motors by the White House, though Dräger is “sceptical” of attempts to have a wide range of industrial firms attempt to ramp up production of ventilators.

Panjiva data shows that Drägerwerk may already have started deliveries to the U.S. as early as Q3 2019. There were 59 shipments linked to the firm in 2020 through March 26, the same level as in Q4. So far though the shipments have focused on components rather than finished machines. 

Chart shows U.S. seaborne imports linked to Drägerwerk. Source: Panjiva

As could be expected, total U.S. seaborne imports of completed ventilator systems have slumped in the first three weeks of March. Total imports fell by 33.5% year over year and were 39.7% below the average run-rate for Q4. Shipments from China slumped by 84.7% on the March versus Q4 comparison which was not offset by a 30.4% surge in shipments from Singapore. 

Shipments from the rest of the world also dropped by 59.4%, and could decline further given the export restrictions being applied globally – unless the recently agreed G20 pact to not apply such rules is abided by.

Chart segments U.S. seaborne imports of ventilators by port of lading origin on a 21-day total equivalent basis. Source: Panjiva