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Shanghai Covid lockdown expected to extend supply chain disruption

The 2-part lockdown in Shanghai due to a surge in Covid cases is expected to further impact supply chain challenges given its place in logistics.

Relying on accurate information from suppliers on availability is more critical than ever. Their attention to building their stock situation is key here, as is our own stock piling in our shops to ensure we have stock to sell.

Talking to a range of suppliers across multiple categories, these supply chain challenges are expected to be with us through to the end of 2023 at least.

Related, the new chair of the US toy association wrote about this a couple of days ago:

Supply chain disruptions are an immediate issue of focus impacting our toy businesses, including:

  • ocean freight creating a choke point in transport costs;
  • the impact of shipping challenges on global markets over time;
  • ongoing disruptions caused by the pandemic, including the current lockdowns in Southeast Asia;
  • US-China tariffs on raw materials that are a component in rising costs of global raw materials; and
  • tensions caused by the Russia/China relationship; a destabilized Europe’s impact on selling markets and manufacturing options; and the high possibility of China’s issues impacting other Asian countries.

Add to these global challenges continuing logistics challenges impacting particularly road freight in Australia.

It all makes a stronger than ever case for locally made.

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