Toy companies are keeping an eye on China shipping delays as key holiday season nears

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Shipping delays in China are forcing toymakers to face tough decisions ahead of the industry's most important sales season.

The pandemic created a bottleneck in the global transportation pipeline, which was later worsened by theExacerbating these troubles is aAll the while, inventory continues to pile-up, leading to manufacturing delays. With shipping containers scarce — or worse, more than double pre-pandemic prices — toymakers are faced with tough decisions ahead of the industry's most important sales season.

Wissink noted that toy companies are just entering the ramp-up period of production for toys that ship in September and October for the holidays. Currently, the industry is seeing delays of two-to-three weeks, Wissink said. This is consistent with a report from Davidson analyst Linda Bolton Weiser that was published Friday, although Weiser said delays could be as long as a month.

 

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