Toys May Be Harder To Get In Time For Holidays Due To Global Supply Chain Delays

FARMERS BRANCH, Texas (CBSDFW.COM) – The sawdust is flying contained in the headquarters of KidKraft, a Farmers Branch-based firm finest identified for kids’s play units, kitchens, and dollhouses.

CEO Geoff Walker says workers design and construct prototypes right here in North Texas, however the remaining merchandise are made in China and Vietnam earlier than being shipped to the U.S. by sea.

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“Getting containers out of China has been more challenging than ever,” Walker instructed CBS11. That problem is impacting not simply toys however furnishings, clothes, auto components, electronics and extra.

Millions of things destined for DFW are trapped in a site visitors jam on the port of Los Angeles.

According to port officers, earlier than the pandemic there was hardly ever greater than a handful of ships ready at sea.

Now there are dozens, every holding a few billion {dollars} in merchandise.

“I think it’s going to be really tight getting access to products for Christmas,” stated Ryan Petersen, the CEO of Flex Port, a world commerce firm. “The famous example is nobody can get a Playstation 5 right now but you’re seeing that happen with much more mundane things [as well].”

The world provide chain remains to be taking part in catch-up from pandemic-related disruptions that began in March 2020, when factories shut down and freighters had been decommissioned.

By that summer season on-line ordering rebounded, with spending remaining robust ever since. That’s led to a scarcity of delivery containers, inflicting costs to blow up. “Last year a 40-foot container cost $3,200,” stated Isaac Larian, the CEO of MGA Entertainment. “Now it’s a bidding war. Who pays the most? It’s gone up to twenty-two, twenty-three thousand dollars.” Larian is now utilizing air freighters to attempt to get his toys to retailer cabinets.

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Walker estimates his prices are up 10-15% this 12 months.

Another problem for firms across the globe: the dearth of supplies.

Electronic parts, wooden and resin for plastics are all in brief provide.

“Chasing those raw materials as costs go up are one of the key challenges heading into the holidays,” stated Walker. “We’re fortunate at KidKraft in that we don’t use a lot of electronics so we haven’t been hit by the chip shortage, too.”

He additionally says attending to dry land is simply step one.

“It’s offloading containers at ports, then finding chassis that the containers go on to ship to warehouses, then finally unloading,” he stated. “Every one of those has a problem along the way where there are limited employees available.”

Walker says there shall be fewer of some KidKraft merchandise to select from this 12 months, so he’s telling dad and mom to start out shopping for now.

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“Make sure you shop early this year,” he warned. “October is going to be key because those key products that you have to have for your kids.. by Black Friday [they] will be gone.”


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