Worst case scenario: Companies struggle with supply bottlenecks | national

By PAUL WISEMAN AP Economics Writer

WASHINGTON (AP) – Toy maker Eric Poses created a card game last year that he called The Worst-Case Scenario, an ironic reference to how the coronavirus disrupted normal life.

In a turn Poses could never have predicted, his game itself would be caught in the latest fallout from the health crisis: a lagging global supply chain that means shipping delays and skyrocketing freight costs. .

The worst-case scenario, produced in China, was supposed to reach the distribution centers of US retailer Target in early June. Instead, the games sat stuck for weeks in the Port of Seattle and didn’t arrive until mid-July.

“You’re doing everything right,” said Poses, who started his toy company All Things Equal in 1997 in Miami Beach, Florida. “You produce on time. You are excited about your product. ”

And then … unforeseeable disaster.

Like other importers, Poses faces a perfect storm of supply issues – rising prices, overwhelmed ports, shortage of ships, trains, trucks – which will likely occur until 2022. He is now reconsidering a decision he made five years ago: to switch production from the United States to China. It might make sense, he thinks, to bring production back – at least to Mexico, if not the United States – to protect it from the risks of depending on factories an ocean away in China.

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