Global Toy Shortage This Holiday Season

Top toymakers say their products will be harder to find and more expensive this holiday season.

New York (CNN Business)The makers of some of the most popular toys in the United States sounded the alarm this week about the global shipping crisis and labor shortages limiting their ability to keep stores stocked throughout the fall holiday shopping season.Two leading toy company CEOs who recently spoke with CNN Business said they fear their supply chain woes and the resulting inflated prices will mean many children won’t get the toys they want for Christmas. That’s why they’re warning parents to get their holiday shopping done early.”There is going to be a major shortage of toy products this year,” MGA Entertainment CEO Isaac Larian told CNN Business. “The demand is going to be there. What is not going to be there is the product to fill the demand.”

Larian’s privately held company owns and distributes Little Tikes, Rainbow High dolls, Bratz dolls and LOL Surprise!, one of the hottest toy brands of the last few years and the top toy of 2020, according to NPD Group, a leading market research company.

He admitted to being “very frustrated” this week with shipping container companies such as Maersk, who he and other toy industry insiders accused of taking advantage of the global shortage on freight containers by dramatically raising their prices.”The container that cost $3,200 last year is now $22,000,” Larian said. “The installation of raw material and labor has gone up exponentially. We’ve seen a 23% increase in cost of product in China without the logistics. That is going to translate to higher prices with retail.”

Even after paying more to get his products to US shores, Larian said a trucker shortage is preventing him from getting his toys into warehouses and ultimately onto store shelves.”We’ve had hundreds of containers on 46 ships sitting in the ocean at the port of LA and Long Beach for the past 30 days,” he said. “There are people to unload it, but there are not enough trucks to pick it up.”

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