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For months, logistics experts, as well as businessmen, have warned of the problems caused by the slow recovery of the supply chain throughout the country. The red lights have been present because the Christmas season can be catastrophic for retailers and consumers.
Bringing merchandise from other parts of the world to the United States is a true odyssey, as shipping container prices and supply network obstructions make it difficult for businesses to stock their stores.
This situation can have a considerable impact on large increases in transportation costs to bring toys to the United States, which will generate new highs for three consecutive months until Christmas.
Toy manufacturers are very nervous, since Christmas sales represent a large number of profits of their total in one year, so the stakes are high for the American industry that represents almost $ 33,000 million.
Steve Pasierb, CEO of The Toy Association, told FOX that the fourth quarter represents 70% of its annual sales. On average, Christmas sales account for 20% of the overall retail industry, 85% of toys are made in China.
Toy companies are racing to bring their products to retailers while facing serious supply network crisis which could mean a tight supply heading into the holiday season.
Desperately, companies are looking for availability to find containers and ship their goods as they seek to get them to alternative ports. Some companies are sending the merchandise by air in some of their toys to guarantee delivery before December 25.
Like all retailers, toy companies have faced problems in the supply chain since the pandemic temporarily closed factories in China in early 2020, a situation that has affected various sectors that are struggling to guarantee the supply of products.
The presence of the pandemic led various US brands to cut or temporarily halt production amid closures due to social distancing. You might think that since the pandemic situation has improved the supply chain would recover, it is not.
The truth is that the situation has worsened since the spring and companies are having difficulty meeting the growing demand for all kinds of products that consumers require as they gradually re-integrate into their daily activities.
Manufacturers are struggling with bottlenecks at factories and key ports, and everywhere in between. In addition, the labor shortage in the United States has made it difficult to unload products from ships and trucks to fill warehouse shelves.
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