Christmas Is Approaching, But The Toy Giant’s Products Are Stuck In The Port...
Dec 22, 2020
Christmas is approaching, but the toy giant’s products are stuck in the port...
For foreign toy manufacturers, Christmas is the top priority of the peak sales season of the year, and it is less than two weeks before Christmas. However, logistics has dropped at this critical moment, which is really a headache.
The magical 2020. Affected by the epidemic, people are more inclined to shop online, which is a safe way of consumption. The penetration rate of e-commerce in overseas countries has increased significantly. Gene Seroka, executive director of the Port of Los Angeles, USA, said at a press conference this Tuesday that Los Angeles in November The number of 20-foot standard containers in the port reached 464,000, a year-on-year increase of 25%. Since the second half of the year, container imports from Asia have broken a record high.
The surge in container imports has caused traffic congestion in the port, slowing the speed of trucks and trains out of the port, which has also led to a slowdown of cargo ships entering the port. According to Seroka, 50 of the 88 ships that arrived at the Port of Los Angeles in November waited 2.5 days to start unloading. By December, 80% of arriving ships had to wait an average of four days.
The number of imported goods flowing into the port of Los Angeles is staggeringly high. The peak shipping season in previous years usually passes in mid-December, but after all, 2020 is an unusual year, and it seems to understand what happens.
This is really not good news for the toy industry. Known for popular products such as L.O.L. Surprise Dolls and Bratzdolls, the Chatsworth-based toy giant MGA Entertainment is anxiously waiting for the cargo to leave the ports of Los Angeles and Long Beach.
The Port of Los Angeles and Long Beach in Southern California are the largest ports in the United States and the two ports through which China's import and export goods must pass. And 80% of MGA's products are made in China and produced by about 50 Chinese factories.
L.O.L. Surprise Doll
MGA CEO and founder Isaac Larian revealed in an interview with the media on this Monday (December 14) that as of the afternoon of the same day, the company had close to 270 containers (including 58 at the Port of Los Angeles and 210 at the Port of Long Beach) with a value of approximately 7,500 Ten thousand dollars worth of toys are stranded in Southern California ports. As goods continue to be shipped, these numbers continue to rise.
In response to this situation, Seroka said that he will cooperate with MGA and do his best to help them, and strive to transport 40 containers by truck before this Friday.
Of course, MGA is not the only toy company that encounters this problem. Seroka further said, “We are working with the toy industry, and their goods will receive priority shipping rights, and strive to get the products to consumers before Christmas.”
Although the port has provided the greatest help, Larian said that he is still very frustrated, "I have been in the toy industry for 42 years. We have the hottest toys this season, such as LOL surprise dolls, little Tektronix and other products, although we The products will continue to be sold after Christmas, but many children may not be able to receive gifts when they wake up at Christmas, and parents will also be very disappointed, which makes me sad."
Bratzdolls
Larian is not sure whether all the goods can be delivered to the shelves of retail stores before Christmas. However, many consumers have already placed orders at retailers' online shops, and MGA may directly ship the products to consumers.
