As the president of the Toy Association has warned, the price of children’s toys will increase by 10 per cent before the holidays, and many of the much-needed gifts may soon be in reserve.
“People are seeing an increase in prices this holiday season,” said Steve Pasierb, president of the Toy Association, which represents the U.S. toy market’s $ 32.6 billion business.
“We’ve seen some toy categories increase five to ten percent,” he said in an interview with Acesparks on Wednesday.
Pasierb pointed to the backlog in California ports, which account for 36 percent of U.S. imports, and he described problems in the international supply chain as a “global crisis.”
There were 56 container vessels in the ports of Los Angeles and Long Beach on Wednesday, according to the Southern California Maritime Exchange, which provides shipping services for the two ports.
According to Kip Louttit, executive director of the Southern California Maritime Exchange, in normal times, a single ship would normally wait to enter ports.
Behind the ports, Pasierb noted a lack of carriers, as well as preventing companies from distributing cargo across the country.
“The system is breaking down and now we’re paying the price for it,” he said.
“It’s hitting us at the worst time of the year, on vacation,” he added.
As Pasierb predicts, the ports need to be left behind by the end of the second fiscal quarter of next year.
“We have a long and long way to go. It took us more than a year to get into it, ”he said.
The White House on Wednesday blamed the situation for a pandemic, saying it was “inevitable.”
“I can’t predict,” White House spokeswoman Jen Psaki said when asked how long the supply chain would be clogged.
He added that it was unrealistic to fix the issue overnight, adding that the problems could continue throughout the holiday season.
“The supply chain working group has been working non-stop for months and months, we are solving various problems we see in the supply chain … There are problems at the ports … soon they are increasing,” he said. .
To address the problem, the Biden administration announced Wednesday that the port of Los Angeles is extending its business hours to 24/7.
FedEx, UPS, Walmart and Home Depot have also agreed to speed up day and night operations at the ports.
“By increasing the number of hours worked late and unlocking crowded hours when the brand is moving fast, today’s announcement could be a game changer,” President Biden said.
Critics have criticized the plan, saying companies and port operators are working around the clock to achieve high-yield targets.