Toy makers warn of congestion and material shortages to worsen holiday stock crunch

As the holiday shopping season approaches, the toy market remains hot. Due to port congestion and shortage of raw materials, there may be a shortage of toy products during this holiday season. Due to the increasing port congestion , many toy manufacturers are worried that their products will not be available on time before the holiday .

" While toys are now very well stocked on the shelves of some major retailers , we do n't know how long this will last ," said Ed Desmond, vice president of the National Toy Association , during a virtual press conference . "One of our general concerns right now is that consumers may not have as wide a selection of toys as they do heading into the holiday shopping season ."

Port congestion is a major reason for this phenomenon . According to Freightos Group , as port congestion worsens , the time it takes to ship products from China to the United States in September increased by an average of 73 days, an increase of 83% from the same period in 2019. Whether it is toys made in China or materials purchased in the United States to make toys, they face the same dilemma: because the container docks at a certain port or terminal for more than 30 days, toy companies cannot receive the goods on time .

Another important reason affecting holiday toy inventory is the procurement of materials . According to AlixPartners survey data , more than 60% of manufacturers have reported a shortage of resin. Desmond said : "A manufacturer that produces plastic toy products for children recently contacted me and said that they couldn't find resin anywhere recently . "

Affected toymakers are taking actions to increase inventory, such as doubling orders ahead of the holiday season . Hasbro began sourcing products earlier than usual, as did other retailers. " Our response plan includes sourcing more products earlier from multiple countries and regions ; increasing the number of ocean carriers we work with ; and using more ports to speed up the delivery of our products from origin to destination, " said Deb Thomas, Hasbro's vice president and chief financial officer.

Port congestion and raw material shortages are still a global problem. What is certain is that with the raging epidemic in the United States and the upcoming holidays, the demand for toy products will not weaken for the time being. Sellers in the toy industry must also be prepared in advance to provide consumers with more products that meet their needs.

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