Transportation costs have skyrocketed by 650%! American toy manufacturers keep their products in China~
Release time:
2022-10-24
The twists and turns of a toy's journey from China to the United States Taking essential holiday goods such as plush toys as an example: What difficulties may consumers face if they want to transport them from Ankang, Shaanxi, China to the East Coast of the United States The cost of toys has increased; ② Waiting for the empty container to depart; ③ After arriving at the port of Los Angeles, California, USA, continue to wait; ④ The epidemic has led to a shortage of workers and a significant reduction in transportation capacity. Overall, compared to pre pandemic levels, the total transportation cost of a plush toy has increased by 650% from production to reaching consumers. All logistics bottlenecks ultimately mean that consumers may need to pay higher prices, and in the aforementioned logistics process, every detail problem is difficult to solve in the short term. Jeremy Siegel, a professor at the Wharton School of Business in the United States, warns that the inflation problem in the United States will be much hotter than the Federal Reserve had expected. The tight supply of goods will inevitably lead to an increase in prices According to foreign media reports, the Los Angeles port is filled with cargo ships waiting to be unloaded, and toy manufacturers cannot laugh at the holiday shopping season at the end of this year. Isaac Larian, CEO of global toy giant MGA Entertainment, stated that port congestion has been a common phenomenon along the California coast of the United States since at least May. He looked at the ships at sea every day and thought of toys that had not yet arrived. Delayed unloading may endanger parents' ability to purchase toys in a timely manner, pack them, and hide them under the Christmas tree. If they cannot be purchased in a timely manner, these toys may not be available until the end of winter and will be cleared for auction. As a manufacturer of LOL Surprise, Rainbow High, and Little Tickes, MGA currently has sufficient inventory to meet 65% of outstanding orders. But Larian said that originally expected sales to grow by 50% this year, but now it is expected to only grow by 18% to 20%. Many toy manufacturers are working hard to cope with the huge bottleneck in global transportation channels caused by the pandemic, which has worsened due to the blockage of the Suez Canal in March. Larry said that containers that used to cost only $3200 are now priced at over $20000. And even if the container is unloaded, there are not enough truck drivers to transport these goods.
The twists and turns of a toy's journey from China to the United States
Taking essential holiday goods such as plush toys as an example: What difficulties may consumers face if they want to transport them from Ankang, Shaanxi, China to the East Coast of the United States The cost of toys has increased; ② Waiting for the empty container to depart; ③ After arriving at the port of Los Angeles, California, USA, continue to wait; ④ The epidemic has led to a shortage of workers and a significant reduction in transportation capacity.
Overall, compared to pre pandemic levels, the total transportation cost of a plush toy has increased by 650% from production to reaching consumers. All logistics bottlenecks ultimately mean that consumers may need to pay higher prices, and in the aforementioned logistics process, every detail problem is difficult to solve in the short term. Jeremy Siegel, a professor at the Wharton School of Business in the United States, warns that the inflation problem in the United States will be much hotter than the Federal Reserve had expected.
The tight supply of goods will inevitably lead to an increase in prices
According to foreign media reports, the Los Angeles port is filled with cargo ships waiting to be unloaded, and toy manufacturers cannot laugh at the holiday shopping season at the end of this year.
Isaac Larian, CEO of global toy giant MGA Entertainment, stated that port congestion has been a common phenomenon along the California coast of the United States since at least May. He looked at the ships at sea every day and thought of toys that had not yet arrived.
Delayed unloading may endanger parents' ability to purchase toys in a timely manner, pack them, and hide them under the Christmas tree. If they cannot be purchased in a timely manner, these toys may not be available until the end of winter and will be cleared for auction.
As a manufacturer of LOL Surprise, Rainbow High, and Little Tickes, MGA currently has sufficient inventory to meet 65% of outstanding orders. But Larian said that originally expected sales to grow by 50% this year, but now it is expected to only grow by 18% to 20%.
Many toy manufacturers are working hard to cope with the huge bottleneck in global transportation channels caused by the pandemic, which has worsened due to the blockage of the Suez Canal in March. Larry said that containers that used to cost only $3200 are now priced at over $20000. And even if the container is unloaded, there are not enough truck drivers to transport these goods.
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