Shipping Delays May Cause You To Rethink Last Minute Christmas Shopping

Christmas is coming to town! In the past few weeks, the number of cargo ships waiting to dock has reached record levels. But we have a problem: The port doesn’t have enough room to haul the containers away. Last week, over 146 vessels could not be unloaded. And they’re still crowding the Los Angeles and Long Beach ports. That report broke the former record of 142, set just one day prior. And representatives for the toy industry are urging others to get out and buy their holiday gifts now in case we see sustained supply chain disruption in the coming months.

Stock up now.

The mass shipping congestion in the Los Angeles ports stems from increased demand for goods amid the pandemic. As a result, experts in the toy industry say now is the time to stock up. “If you see toys that you think your kids are going to want for Christmas … pick them up now and tuck them away,” Toy Industry Association executive vice president Ed Desmond said. Currently, the toy industry has a healthy supply of products, but they expect to see a decline in available products by December.

It’s coming out of your wallet.

It seems Santa has quite the steep chimney to climb this year. Toymakers across the nation say they are being charged over five times the normal amount for the average 40-foot container. And, as a result, U.S. consumers should expect this added cost to translate over to their wallets. But, of course, that is assuming they can even get the toys they want.

“Shoppers over the years have been conditioned to wait for last-minute sales and deals, but they probably won’t be coming,” Steve Pasierb, the president and CEO of The Toy Association, said. “In fact, inventory may be low, so if there’s a must-have item on your child’s wish list, we are encouraging families to shop early for toys to ensure that you’ll be able to deliver on those coveted gifts.”

More behind supply chain disruption

In terms of a detailed response, port officials say the cause of the backup is primarily due to the strictly enforced C-19 restrictions at the ports. Over the past year, the CDC required that after identifying a C-19 case, all persons aboard would be considered “contacts” due to the close living quarters. Then, the crew had to remain on board until all members tested negative, making for slow travel.

Also, because of the high demand for goods imported from China, South Korea, and other Asian countries, top items such as furniture, auto parts and textiles have been in short supply. The delays are only increasing the demand—and therefore price—of these goods.