Toymaker Ty Ships Products For The Holidays To Avoid Port Congestion

Dive brief:

  • Ty Inc. ships its products by air for the holidays to avoid port congestion, and the toy maker has already funded 283 cargo flights to the United States since October. according to a press release Monday.
  • Ty’s Beanie Babies and Beanie Boos products are shipped via flights from China, where they are made, to Chicago. The toys are then transported to Ty’s suburban Chicago headquarters for shipment to small retailers as well as specialty stores, convenience stores, grocery stores and drugstores.
  • The typical cargo flight costs between $ 1.5 million and $ 2 million, Ty said. But the company said it had not raised the prices of its products, and its chairman, CEO and founder, Ty Warner, said the thefts would continue.

Dive overview:

More and more companies are taking their freight into the air at the start of the holidays, sacrificing the profitability of shipping to ensure products arrive on time.

“I am determined not to let global supply chain issues interfere with the holidays, and I am committed to supporting independent retailers,” Warner said in a statement.

Supply chain bottlenecks, including a backlog of container ships outside the ports of Los Angeles and Long Beach, have locked the stocks of some shippers in transit. Product catalogs during Cyber ​​Week fell 6% year-over-year in the United States, according to Salesforce, as retailers grapple with logistical hurdles.

Some companies have shipped their goods well before the high season where are spend more to work around the problems. Ty is among those who choose to lean more into the air cargo speed to keep their goods moving.

Health apparel company FIGS plans to spend around $ 8-10 million on air travel in its fourth quarter to ensure limited-edition styles and colors arrive in time to meet demand, the director said. financier Jeff Lawrence. during a call for earnings. The company spent about $ 1 million on air freight in the previous quarter.

“So we don’t think this will be an ongoing air cargo activity,” Lawrence said. “It was really just a reaction to the transit issues everyone is having.”

But relying more on air cargo comes with its own hurdles. Capacity constraints and high shipping rates have been a constant in 2021, and airports in China and the United States have struggled to manage cargo effectively.

Some carriers have announced cancellations of flights out of Hong Kong and Guangzhou – two destinations out of Ty – and airlines out of Guangzhou “continue to reject large shipments or provide longer transit times of up to up to 3 weeks, ”said Flexport. in a market update. In the United States, terminal operations at airports “remain a challenge” and some are understaffed, according to CH Robinson.


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