US toymakers leave China-made products behind as global shipping bottlenecks threaten to squeeze holiday sales
- Sky-high shipping costs and supply chain bottlenecks are forcing US toymakers to leave products in China
- But for toymakers that heavily rely on holiday sales, there is a lot at stake for the nearly US$33 billion US industry
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 is leaving one-third of its iconic Tonka Mighty Dump Trucks destined for the US in China.
“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 are 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 December 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, US 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.