Christmas toy, electronics shortage alert
AUCKLAND: Consumers are being urged to get ahead of the Christmas shopping rush because of an expected shortage of soughtafter toys and electronics.
Supply chain management consultancy TMX Global said increased pressure on supply chains was adding further pressure to already high prices.
‘‘Containers costs have gone up over four times in the last 18 months or so . . . but on top of that you’ve seen this overwhelming demand to more flexible consumption of products, which is driving costs,’’ TMX chief executive Travis Erridge said.
The global shortage of ships, containers and the computer chips required to power the global shift to online shopping and digitisation was unlikely to improve much over the next two or three years, he said.
‘‘So we’ve got a combination of challenges and then you’ve got domestically, within New Zealand, challenges around the capacity of the network to move product around both the North and the South Islands.
‘‘The closer you get to Christmas, the more chance ‘little Johnny’ doesn’t get his bike for Christmas. so it’s definitely something to consider.’’
However, plenty of retailers had planned ahead and were holding excess inventory, Mr Erridge said.
Despite that, popular electronics and toys would likely be in short supply and he suggested consumers get their orders in early to avoid disappointment.
Manufacturers of computer chips, ships and containers would take time to meet the pentup demand.
‘‘It takes two years to build a ship and two years to build a factory to produce microchips,’’ he said. — RNZ