breaking

Medical Supply Maker Gentell Squeezed by Oil Shock and Shipping Surge

Gentell, a Pennsylvania-based medical supply manufacturer, is navigating sharp cost pressures from geopolitical disruptions. Raw material expenses tied to oil and gas derivatives have climbed as much as 30% for the company, which produces medical dressings and relies heavily on petrochemical inputs. International shipping costs have doubled in certain lanes — container service from New Zealand to California now runs $4,500, compared with $2,000 before the recent regional conflict. The Strait of Hormuz disruptions have created particular strain. Gentell supplies products to nearly 5,000 nursing homes under fixed annual contracts, limiting its ability to pass along full cost increases to customers. Oil and gas derivatives feed into more than 6,000 consumer products daily, exposing broad swaths of the supply chain to similar margin pressure.