MercoPress. South Atlantic News Agency

Falklands brace for Middle East fallout with fuel, shipping and supply contingencies

MLA Goss said supply is covered under the agreement with Stanley Services Limited

The conflict in the Strait of Hormuz and its consequences for the global supply of oil and other derivative products have not bypassed the Falkland Islands, which, as one local lawmaker put it, sit “at the tail end of global distribution.”

It comes as no surprise, then, that the Falkland Islands Government (FIG) has commissioned a report into the potential impacts on the Islands of the Middle East conflict and “will continue to take up to date advice on managing the current situation,” Member of the Legislative Assembly Michael Goss told residents at a public meeting this week, according to the Penguin News weekly.

MLA Goss also addressed the recent shipping delays — extending over several months — to the Islands, noting that South Atlantic Atlantic Shipping (SAAS), the carrier involved, is 50% owned by FIG and “is about to begin an after action review” of operations during the disruption period.

A contingency plan is to be developed for the company on that basis, ensuring that in the event of an unexpected interruption to the current shipping service, SAAS will have sufficient agility to secure alternative maritime services at short notice.

On fuel, MLA Goss said supply is covered under the agreement with Stanley Services Limited — responsible for storage and distribution and 45% owned by FIG — which is “legally obliged to hold three months of fuel in the Islands at any one time.” He added that close work continues with fuel suppliers to ensure compliance and that “forward planning is always under review.”

“If there was a fuel shortage that was out of FIG services control, we would work with stakeholders to develop a plan to ensure critical services are protected,” he said.

Regarding Stanley Growers, the greenhouse complex that supplies much of Stanley's fresh produce and is currently government-owned, MLA Goss said FIG has been actively working to maximize production and diversify supply chains. “Proof the latter has borne fruit is the recent delivery on Saturday's Latam. Space on said flights will always be the deciding factor. However, it is noteworthy that this important trade link with Chile has been re established,” he told the meeting.

Hospital authorities, he added, were aware of supply difficulties during the recent delays and were working with all partners — including the UK Ministry of Defence — to keep as many key medicines and associated supplies available as possible. The Director of Health and Social Services is on hand to assist retail suppliers with sourcing appropriate medicines, such as over-the-counter Paracetamol.

Although the government is not involved in the buying strategies of local retailers, “officers are always pleased to support requests for information or help where possible,” MLA Goss noted. He said FIG had remained in contact with retailers throughout the recent shipping delays to monitor stocks of essential goods and trigger contingency plans if needed.

“It is worth noting that in key product areas, such as baby products, feminine hygiene products, milk, etc, supplies held in warehouses were largely sufficient, and all retailers should be praised for the way they manage their stock during this time,” he said.

Residents were also reassured that there is currently no shortage of fuel for civil aviation or the Ministry of Defence, “however that could change,” cautioned MLA Cheryl Roberts.