While the holiday season is still months away, retailers and infrastructure experts are preparing for a possible shortage of Christmas toys this year, according to a recent Newsweek report.
As of Sept. 15, a record 61 container ships have been anchored offshore, being forced to wait a week or longer to offload their cargo at the Marine Exchange of Southern California.
"This is because of the historic strains on capacity among container shipping lines, but more importantly port infrastructure and inland distribution networks," Willy Shih, Robert and Jane Cizik, professors of management practice at the Harvard Business School said. "Many importers have responded by ordering extra merchandise and trying to arrange earlier deliveries, which have only exacerbated the situation. We will see shortages and higher freight costs, likely reflected in significant price inflation, across a wide range of sectors. Toys will be no exception."
As a result, all products moved by ocean cargo will face some sort of interruption this year, Newsweek reports. This accounts for 95% of globally traded products.
Shih told Newsweek buyers can expect popular toys to be more scarce and more expensive this holiday season.
This comes following work interruptions brought on by the COVID-19 pandemic among an increasing demand for shipping containers to carry personal protection equipment worldwide, Newsweek reports.