Toy Association Alerts Members to New Supply Chain Challenges Emerging in China

March 21, 2022 | As The Toy Association continues to provide the latest updates and resources addressing the ongoing supply chain crisis, it is alerting members that new Chinese government-imposed lockdowns could cause further delays in supply chains in the coming months if the situation worsens.

COVID-19 infection rates hit a two-year high in China last week leading to widespread lockdowns in major port cities − including the toy manufacturing hub of Shenzhen − as part of the country’s zero-COVID policy. While terminals are still operating normally for now, factories, warehouses, and distribution centers remain closed; trucking capacity is limited; and shippers are canceling cargo bookings in Shenzhen with freight being diverted to other ports, according to the latest reports.

“The concern for our members and the greater toy community is that if this COVID-19 outbreak continues to worsen and factory doors remain shuttered for a longer period of time, it will deliver yet another blow to an already beaten-down supply chain,” said Edward Desmond, executive vice president of external affairs at The Toy Association. “Right now, we are keeping our channels of communication open with government and port officials to keep members updated on the latest developments.”

A March 31 webinar, hosted by The Toy Association, will also provide toy professionals with key strategies to help manufacturers and distributors maintain positive relationships with vendors while protecting their businesses amid supply chain disruptions. Registration is open. 

For more updates and resources, visit The Toy Association’s Shipping Crisis Resource Center.