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It’s Bedlam in the Mask Market, as Profiteers Out-Hustle Good Samaritans | It’s Bedlam in the Mask Market, as Profiteers Out-Hustle Good Samaritans |
(3 days later) | |
Last month, Susan Houghtelling, a hospital supply-chain manager in upstate New York, was facing a shortfall of medical supplies when her inbox suddenly flooded with offers. | Last month, Susan Houghtelling, a hospital supply-chain manager in upstate New York, was facing a shortfall of medical supplies when her inbox suddenly flooded with offers. |
There were advertisements for gallons of hand sanitizer, crates of isolation gowns and, most crucially, pallets of N95 masks — perhaps the most sought-after product on the planet. All were for prices that were multiples higher than what she normally paid. | There were advertisements for gallons of hand sanitizer, crates of isolation gowns and, most crucially, pallets of N95 masks — perhaps the most sought-after product on the planet. All were for prices that were multiples higher than what she normally paid. |
“All of these people are coming out of the woodwork, and all of them mysteriously now have access to an abundant supply,” said Ms. Houghtelling, who works for three hospitals owned by Arnot Health, based in Elmira. She forwarded dozens of messages to The New York Times from brand-new vendors. One offered her boxes of 50 surgical masks for $70 each; she used to pay $2.28. | “All of these people are coming out of the woodwork, and all of them mysteriously now have access to an abundant supply,” said Ms. Houghtelling, who works for three hospitals owned by Arnot Health, based in Elmira. She forwarded dozens of messages to The New York Times from brand-new vendors. One offered her boxes of 50 surgical masks for $70 each; she used to pay $2.28. |
One solicitor in particular caught her attention: Blank Industries, a company that offered N95 masks for nearly $5 each — and only if Ms. Houghtelling ordered a million. She figured it was a scam. | One solicitor in particular caught her attention: Blank Industries, a company that offered N95 masks for nearly $5 each — and only if Ms. Houghtelling ordered a million. She figured it was a scam. |
Blank Industries is a real company, but it’s an ice-melt manufacturer in Hudson, Mass. In an interview, Andrew Blank, the founder, said he had upended his business to sell masks after hearing from a former Chinese supplier he had once hired to make a new kind of toothbrush. (Mr. Blank had invented it.) After the coronavirus hit, the supplier turned his dental-products plant into a mask factory. Mr. Blank told his 12 employees to stop selling rock salt and start selling masks. | Blank Industries is a real company, but it’s an ice-melt manufacturer in Hudson, Mass. In an interview, Andrew Blank, the founder, said he had upended his business to sell masks after hearing from a former Chinese supplier he had once hired to make a new kind of toothbrush. (Mr. Blank had invented it.) After the coronavirus hit, the supplier turned his dental-products plant into a mask factory. Mr. Blank told his 12 employees to stop selling rock salt and start selling masks. |
Why was he charging $4.92 for each N95? “To be honest, I don’t even know what an N95 normally sells for,” he said. | Why was he charging $4.92 for each N95? “To be honest, I don’t even know what an N95 normally sells for,” he said. |
I told him. “50 cents?” he repeated. His supplier was charging him $4.75. (His margin would cover shipping costs; he planned to take no profit.) | I told him. “50 cents?” he repeated. His supplier was charging him $4.75. (His margin would cover shipping costs; he planned to take no profit.) |
The eruption in demand for dwindling amounts of masks has resulted in a kind of global supply-chain bedlam. In the United States, the federal government has decided against commandeering American factories to create a new stream of masks. Instead, federal officials are competing against states, hospitals and medical suppliers for the same pool of masks, which come mostly from China. | The eruption in demand for dwindling amounts of masks has resulted in a kind of global supply-chain bedlam. In the United States, the federal government has decided against commandeering American factories to create a new stream of masks. Instead, federal officials are competing against states, hospitals and medical suppliers for the same pool of masks, which come mostly from China. |
Yet states and hospitals, whose typical suppliers are overwhelmed and overextended, have little experience negotiating directly with the Chinese supply chain. Thousands of middlemen — entrepreneurs, do-gooders and profiteers — have rushed to fill the void. | Yet states and hospitals, whose typical suppliers are overwhelmed and overextended, have little experience negotiating directly with the Chinese supply chain. Thousands of middlemen — entrepreneurs, do-gooders and profiteers — have rushed to fill the void. |
That frenzy has created a mess of confusion, according to interviews with hospitals, factories and mask buyers. Production of masks is soaring, but so are scams, logistical hurdles and, of course, prices. | That frenzy has created a mess of confusion, according to interviews with hospitals, factories and mask buyers. Production of masks is soaring, but so are scams, logistical hurdles and, of course, prices. |
After the coronavirus outbreak began, China imported two billion masks. France ordered a billion and vowed to become self-sufficient by year-end. The U.S. government has done comparatively little to coordinate purchasing and ensure that American governments and hospitals aren’t competing. | After the coronavirus outbreak began, China imported two billion masks. France ordered a billion and vowed to become self-sufficient by year-end. The U.S. government has done comparatively little to coordinate purchasing and ensure that American governments and hospitals aren’t competing. |
Last month, federal officials agreed to buy roughly 600 million N95 masks over the next 18 months. But many states and hospitals are desperate for supplies right now, and the government has already nearly exhausted the supply of protective gear in the national stockpile. On Thursday, the White House said it had invoked the Defense Production Act, a 1950s law, to ensure the manufacturing giant 3M sends a certain share of its masks to the United States. | Last month, federal officials agreed to buy roughly 600 million N95 masks over the next 18 months. But many states and hospitals are desperate for supplies right now, and the government has already nearly exhausted the supply of protective gear in the national stockpile. On Thursday, the White House said it had invoked the Defense Production Act, a 1950s law, to ensure the manufacturing giant 3M sends a certain share of its masks to the United States. |
Some of the entrepreneurs stepping up in the government’s stead have succeeded. Operation Masks, a two-week-old nonprofit run by tech executives, said it had just closed deals for one million N95s for New York State and 200,000 for Hawaii, charging just over $3 for each mask, not including shipping and other costs. On Thursday, Massachusetts received 1.2 million N95 masks via the New England Patriots team plane. | Some of the entrepreneurs stepping up in the government’s stead have succeeded. Operation Masks, a two-week-old nonprofit run by tech executives, said it had just closed deals for one million N95s for New York State and 200,000 for Hawaii, charging just over $3 for each mask, not including shipping and other costs. On Thursday, Massachusetts received 1.2 million N95 masks via the New England Patriots team plane. |
Still, several hospital executives said that while they appreciated the surge of well-intentioned people, they were overwhelmed with new names in their inboxes, all offering products they need for prices far higher than what they typically pay. | Still, several hospital executives said that while they appreciated the surge of well-intentioned people, they were overwhelmed with new names in their inboxes, all offering products they need for prices far higher than what they typically pay. |
“We’re getting bombarded,” said Ed Bonetti, head of supply chain for the UMass Memorial hospital network in Worcester, Mass. | “We’re getting bombarded,” said Ed Bonetti, head of supply chain for the UMass Memorial hospital network in Worcester, Mass. |
The hospital is prepared to pay more for masks, but it does not want to buy counterfeit gear. “You’re in this uncharted territory where you’re struggling to just at least validate,” Mr. Bonetti said. “The last thing we want to do is put product on a clinician that is not going to protect them.” | The hospital is prepared to pay more for masks, but it does not want to buy counterfeit gear. “You’re in this uncharted territory where you’re struggling to just at least validate,” Mr. Bonetti said. “The last thing we want to do is put product on a clinician that is not going to protect them.” |
Not every new entrant to the market is a good Samaritan. Groups on Facebook, WhatsApp and Telegram are teeming with posts hawking thousands of masks at inflated prices. | Not every new entrant to the market is a good Samaritan. Groups on Facebook, WhatsApp and Telegram are teeming with posts hawking thousands of masks at inflated prices. |
Some are wholesalers who bought pallets of masks from China or in liquidation sales and then marked them up. Many more are simply middlemen who call themselves brokers. They scour the groups for masks advertised for a relatively low price, and then repost the offer for a few thousand dollars more. They don’t handle the masks or put up their own money. | Some are wholesalers who bought pallets of masks from China or in liquidation sales and then marked them up. Many more are simply middlemen who call themselves brokers. They scour the groups for masks advertised for a relatively low price, and then repost the offer for a few thousand dollars more. They don’t handle the masks or put up their own money. |
Yaear Weintroub is one of those brokers. A 22-year-old community college student from Brooklyn, he typically sells wholesale electronics to Amazon sellers. But the online forums he searches for deals became flooded with listings for masks last month, so he now spends his days trying to connect buyers and sellers for a bit of medical-supply arbitrage. | Yaear Weintroub is one of those brokers. A 22-year-old community college student from Brooklyn, he typically sells wholesale electronics to Amazon sellers. But the online forums he searches for deals became flooded with listings for masks last month, so he now spends his days trying to connect buyers and sellers for a bit of medical-supply arbitrage. |
In a recent interview, he said he was working with a partner to close a deal for 280,000 surgical masks that would increase their price 20 percent and net the pair a roughly $40,000 profit. He said many of the brokers sold to other brokers, each one marking up the price, until the masks presumably make it to a nursing home or a hospital. He said he would prefer to sell directly to hospitals. | In a recent interview, he said he was working with a partner to close a deal for 280,000 surgical masks that would increase their price 20 percent and net the pair a roughly $40,000 profit. He said many of the brokers sold to other brokers, each one marking up the price, until the masks presumably make it to a nursing home or a hospital. He said he would prefer to sell directly to hospitals. |
“They’re just more serious,” he said. “So if I have the goods, I want a serious buyer for them. And besides, it’s a morally good reason.” | “They’re just more serious,” he said. “So if I have the goods, I want a serious buyer for them. And besides, it’s a morally good reason.” |
To these sellers, medical supplies are simply another hot product to flip for a profit. Avraham Eisenberg, a New York wholesaler who is trying to ship masks from China, compared the rush for masks to the fad several years ago for fidget spinners. | To these sellers, medical supplies are simply another hot product to flip for a profit. Avraham Eisenberg, a New York wholesaler who is trying to ship masks from China, compared the rush for masks to the fad several years ago for fidget spinners. |
The Justice Department said last month that it would investigate people manipulating the medical-supply market. Five days later, federal authorities charged a Brooklyn man with lying about price gouging after he tried to sell 1,000 masks and other supplies to a doctor for $12,000. (He also was charged with assault after he claimed he had the coronavirus and coughed on F.B.I. agents.) Federal officials are now distributing the more than half a million supplies they confiscated from him. | The Justice Department said last month that it would investigate people manipulating the medical-supply market. Five days later, federal authorities charged a Brooklyn man with lying about price gouging after he tried to sell 1,000 masks and other supplies to a doctor for $12,000. (He also was charged with assault after he claimed he had the coronavirus and coughed on F.B.I. agents.) Federal officials are now distributing the more than half a million supplies they confiscated from him. |
In China, the competition is intense. A small number of Chinese factories are certified by the Food and Drug Administration to make N95 masks, and “those are the diamonds right now,” said Lily Liu, a Chinese hospital executive turned Silicon Valley entrepreneur who now helps run Operation Masks. | In China, the competition is intense. A small number of Chinese factories are certified by the Food and Drug Administration to make N95 masks, and “those are the diamonds right now,” said Lily Liu, a Chinese hospital executive turned Silicon Valley entrepreneur who now helps run Operation Masks. |
“What’s happening at those factories is France shows up in the morning, and then they get Germany at breakfast, and then Italy after lunch, and then the U.S. in the afternoon,” she said. “In between they get distributors showing up at their doorstep with stacks of cash.” | “What’s happening at those factories is France shows up in the morning, and then they get Germany at breakfast, and then Italy after lunch, and then the U.S. in the afternoon,” she said. “In between they get distributors showing up at their doorstep with stacks of cash.” |
That demand has fueled the spike in prices. While some factory owners are probably making handsome margins, much of the price increase is likely spread across the supply chain, from the firms that ship and inspect the masks to those that make the masks’ fabric and the machines that assemble them. | That demand has fueled the spike in prices. While some factory owners are probably making handsome margins, much of the price increase is likely spread across the supply chain, from the firms that ship and inspect the masks to those that make the masks’ fabric and the machines that assemble them. |
Take Zhou Hua, the owner of a factory in Xuancheng, China, that months ago made children’s clothing. In February, as the coronavirus swept across his country, he rushed to buy mask machines and spent roughly $500,000 transforming his plant. Now his staff has nearly doubled to 75 employees, and they make 1.6 million masks a day. | Take Zhou Hua, the owner of a factory in Xuancheng, China, that months ago made children’s clothing. In February, as the coronavirus swept across his country, he rushed to buy mask machines and spent roughly $500,000 transforming his plant. Now his staff has nearly doubled to 75 employees, and they make 1.6 million masks a day. |
He said his margins were modest, and blamed higher material costs for much of the price increases. Most masks use melt-blown fabric to stop tiny particles. Mr. Zhou said the price of that material had risen 90 percent to about $53 a ton. He added that the price for machines that weld straps to the masks had tripled, to roughly $2,100. | He said his margins were modest, and blamed higher material costs for much of the price increases. Most masks use melt-blown fabric to stop tiny particles. Mr. Zhou said the price of that material had risen 90 percent to about $53 a ton. He added that the price for machines that weld straps to the masks had tripled, to roughly $2,100. |
The people jumping into the mask market come from across the spectrum. Dan Schonfeld, for instance, sells pool noodles. He’s pretty good at it, too. He found a reliable supplier in China, slapped sports teams’ logos on them and built a steady business through PoolPartsToGo.com. | The people jumping into the mask market come from across the spectrum. Dan Schonfeld, for instance, sells pool noodles. He’s pretty good at it, too. He found a reliable supplier in China, slapped sports teams’ logos on them and built a steady business through PoolPartsToGo.com. |
When the coronavirus spread last month to his home state, New York, Mr. Schonfeld thought he could use his connections in China to get masks to American doctors. He dropped his pool-supply business and began pursuing masks, vowing not to earn a cent. | When the coronavirus spread last month to his home state, New York, Mr. Schonfeld thought he could use his connections in China to get masks to American doctors. He dropped his pool-supply business and began pursuing masks, vowing not to earn a cent. |
Updated June 12, 2020 | Updated June 12, 2020 |
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | |
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. | Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. |
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
“The fast-forward button was pressed at that moment, and it really hasn’t stopped,” Mr. Schonfeld, 40, said. “I don’t think I slept for four nights straight.” | “The fast-forward button was pressed at that moment, and it really hasn’t stopped,” Mr. Schonfeld, 40, said. “I don’t think I slept for four nights straight.” |
He worked his iPhone around the clock, calling American hospitals by day and Chinese contacts by night. The hospitals were all interested, but reliable masks were in short supply. | He worked his iPhone around the clock, calling American hospitals by day and Chinese contacts by night. The hospitals were all interested, but reliable masks were in short supply. |
Then, just before midnight on March 19, his pool-noodle supplier in Ningbo, China, Jensen Jiang, emailed with news. He had secured a deal with a nearby factory for 100,000 N95 masks at $2.70 each. But competing orders were coming in, he said, so Mr. Schonfeld had to decide quickly. | Then, just before midnight on March 19, his pool-noodle supplier in Ningbo, China, Jensen Jiang, emailed with news. He had secured a deal with a nearby factory for 100,000 N95 masks at $2.70 each. But competing orders were coming in, he said, so Mr. Schonfeld had to decide quickly. |
“Tomorrow is too late,” Mr. Jiang wrote. Mr. Schonfeld told him to place the $35,000 deposit. | “Tomorrow is too late,” Mr. Jiang wrote. Mr. Schonfeld told him to place the $35,000 deposit. |
The next day, Mr. Schonfeld excitedly called the hospitals. But executives who had expressed such desperation for masks were suddenly wary of turning over $270,000 to a man who was selling pool parts just days before. One replied “We just don’t know you,” Mr. Schonfeld said. “It turned into me needing help.” | The next day, Mr. Schonfeld excitedly called the hospitals. But executives who had expressed such desperation for masks were suddenly wary of turning over $270,000 to a man who was selling pool parts just days before. One replied “We just don’t know you,” Mr. Schonfeld said. “It turned into me needing help.” |
Eventually, his lawyers found a new buyer: a network of nonprofits that care for 35,000 New Yorkers with intellectual disabilities. They wired the money, and Mr. Schonfeld booked a cargo flight. | Eventually, his lawyers found a new buyer: a network of nonprofits that care for 35,000 New Yorkers with intellectual disabilities. They wired the money, and Mr. Schonfeld booked a cargo flight. |
Then he awoke to more bad news. “I am afraid that I made big trouble to you,” Mr. Jiang said in a March 26 email. “All the masks were taken by government.” The email included a photo of a closure notice on the factory’s doors, dated 11 days earlier. Mr. Schonfeld didn’t know what to believe. | Then he awoke to more bad news. “I am afraid that I made big trouble to you,” Mr. Jiang said in a March 26 email. “All the masks were taken by government.” The email included a photo of a closure notice on the factory’s doors, dated 11 days earlier. Mr. Schonfeld didn’t know what to believe. |
As Mr. Jiang negotiated a refund, which still hasn’t arrived, they decided to find and ship a different mask: the so-called KN95, China’s effective version of the N95. Mr. Schonfeld ordered 150,000 from a new factory and booked a freight plane for April 3. | As Mr. Jiang negotiated a refund, which still hasn’t arrived, they decided to find and ship a different mask: the so-called KN95, China’s effective version of the N95. Mr. Schonfeld ordered 150,000 from a new factory and booked a freight plane for April 3. |
But then there was another catch: The F.D.A.’s guidelines for medical use of KN95 masks in the United States were murky, and Mr. Schonfeld’s lawyers warned that officials could seize them. (On April 2, the agency said it would not block imports of the masks.) | But then there was another catch: The F.D.A.’s guidelines for medical use of KN95 masks in the United States were murky, and Mr. Schonfeld’s lawyers warned that officials could seize them. (On April 2, the agency said it would not block imports of the masks.) |
“Every day I wake up, there’s a new hurdle,” he said. “I just never thought it would be this hard to help.” | “Every day I wake up, there’s a new hurdle,” he said. “I just never thought it would be this hard to help.” |
Whatever happens to the shipment, it will end his fling with medical supplies, he said. | Whatever happens to the shipment, it will end his fling with medical supplies, he said. |
A day later, he mentioned he was looking into ventilator suppliers. “I told my wife, ‘All right, I’m done,’” he said. “But if I see on the news that they’re begging for ventilators, and I see that there’s just inaction, I don’t see how I can just sit back.” | A day later, he mentioned he was looking into ventilator suppliers. “I told my wife, ‘All right, I’m done,’” he said. “But if I see on the news that they’re begging for ventilators, and I see that there’s just inaction, I don’t see how I can just sit back.” |
Cao Li and Sheera Frenkel contributed reporting. | Cao Li and Sheera Frenkel contributed reporting. |