TOYMAKERS RACE TO GET PRODUCTS ON SHELVES
Amid severe supply-chain snarls, they’re looking for alternative routes and ports
Running out of time to get its products on store shelves ahead of the holidays, the Basic Fun toy company made an unprecedented decision: It’s leaving onethird of its iconic Tonka Mighty Dump Trucks destined for the U.S. in China.
Why? Given surging prices for shipping containers and clogs in the supply network, transportation costs to get the bulky yellow toy to U.S. soil is now 40 percent of the retail price, which is roughly $26. That’s dramatically up from 7 percent a year ago. And it doesn’t even include the cost of getting the product from U.S. ports to retailers.
“We’ve never left product behind in this way,” says Jay Foreman, CEO of Basic Fun. “We really had no choice.”
Toy companies are racing to get their products to retailers as they grapple with a severe supply-network crunch that could mean sparse shelves for the holidays. They’re trying to find containers to ship their goods while searching for alternative ports. Some are flying in some of the toys instead of shipping by boat to ensure delivery before Dec. 25. And in cases like Basic Fun, they are leaving toys behind in
China and waiting for costs to come down.
Like all manufacturers, toy companies have been facing supply chain woes since the pandemic started and temporarily closed factories in China in early 2020. Then, U.S. stores temporarily cut back or halted production amid lockdowns. The situation has only worsened since the spring, with companies having a hard time meeting surging demand for all sorts of goods from shoppers re-entering the world.
Manufacturers are wrestling with bottlenecks at factories and key ports like Long Beach, Calif. — and
•