A top toy executive rejects President Biden’s plans to save Christmas from global supply chain backlogs by keeping West Coast shipping ports open around the clock, calling the move “too little, too late.”
Isaac Larian, the CEO of MGA Entertainment, the billionaire toymaker behind Bratz dolls, warned that the supply chain crisis is too far past to be resolved in time for the holidays.
‘I think this directive is too little, too late. And frankly, it’s a political gimmick for me,” Larian said on the… Fox news show ‘America’s Newsroom’ on Thursdays.
His comments came the day after Biden announced he had signed a deal with unions and executives at Walmart, FedEx, UPS and others to expand operations at one of the country’s largest shipping ports in an effort to ease supply chain bottlenecks. decrease and increase in size. consumer prices and the emptying of store shelves.
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Isaac Larian said President Biden’s plans to tackle supply chain shortages are too late to save Christmas
Larian is the billionaire toymaker behind Bratz dolls
But Larian said keeping the ports open won’t address the labor shortage.
“Whether the ports are open 24 hours a day or 48 hours a day, you can’t get labor,” he said. “If you can’t get labor, you can’t get trucks, you can’t get the merchandise out. And even if you take them out, it will be too late for Christmas.”
Larian said his company’s most popular toy – LOL Surprise! OMG Movie Magic Studios – only meets about 60 percent of retail demand in America. “That means a lot of kids won’t be able to get their LOL Surprise Movie Magic under the Christmas tree or Hanukkah tree this year,” he said.
“I’ve been doing this for 42 years. I’ve never seen anything like it,” he added. “And frankly the administration knew about this and what they are doing is too little, too late to save this holiday.”
He argued that the Biden administration is not doing enough to encourage people to return to work. “If you pay people to stay at home and they make more money just staying at home than working, they don’t want to come to work,” he said.
Larian said, “I have a solution. There are hundreds of thousands of guest workers who do want to work and we keep them in cages at the border. Let them come to work, release them instead of feeding them and giving them money to live where they live. . . let them get to work.’
Supply chain bottlenecks have led to empty shelves and high prices for US consumers (Photo: Bare shelves seen at a Walgreens in Minneapolis on Oct. 9)
Under the agreement. the Port of Los Angeles will join the Port of Long Beach to operate around the clock
But Biden praised the agreements with ports, unions and shippers as “a sign of great progress in moving goods from manufacturers to a store and to your front door.”
His comments came yesterday shortly after White House press secretary Jen Psaki told reporters, “We are not the postal service or UPS or FedEx. We cannot guarantee. What we can do is use every lever available to the federal government to reduce delays, to make sure we address bottlenecks in the system, including ports and the need to keep them open longer.
Once implemented, the proposed changes could increase output by more than 3,500 shipping containers a week, White House officials said.
‘Traditionally, our ports are only open during the week, from Monday to Friday. And they are generally closed at night and on weekends. By staying open at night and on weekends seven days a week, the Port of Los Angeles will be open for more than 60 hours a week,” he continues. ‘That will almost double the number of hours that the port is open than earlier this year.’
Under the new agreement, the Port of Los Angeles will join the Port of Long Beach to work around the clock to alleviate some of the supply chain bottlenecks plaguing consumers for the holiday season.
Biden announced yesterday that major West Coast shipping ports would operate 24/7 to reduce bottlenecks in the system
Yesterday, the White House warned that many popular toys may not be here in time for Christmas (Photo: A couple buying the remaining towels on Oct. 10 in an otherwise empty Home Goods department of Sears in El Paso, Texas)
The consumer price index also rose 0.4 percent from August to September, according to data released on Wednesday by the Ministry of Labor. That’s a 5.4 percent year-on-year increase, the highest in 13 years.
Although slower than the record 0.9 percent increase in June, it probably won’t be enough to turn the tide of inflation in time for Christmas.
Together, California ports see 40 percent of all shipping containers entering the US.
Long Beach expanded its operations to 24 hours a day, seven days a week last month. Now, Los Angeles port officials and union leaders have agreed to add off-peak hours at night and on weekends to also lower consumer prices.
Goods in the Port of Los Angeles move 25 percent faster at night than during the day, White House officials said.
They argue that expanding to night shifts would help ease the burden on other links in the supply chain by reducing traffic congestion during the day.
As of Monday, there were 62 ships moored in the two ports and 81 waiting to dock and unload, according to the Southern California Marine Exchange.
Supply chain issues have hampered economic recovery from the coronavirus pandemic and are closely linked to the broader inflation challenge facing Biden.
Donald Trump on Wednesday targeted his former rival in a statement mocking the multiple crises Biden faces, including rising consumer prices.
“COVID is raging, our supply chains are crashing with little product in our stores, we were humiliated in Afghanistan, our border is a complete disaster, gas prices and inflation are skyrocketing – how is Biden? Do you miss me already?’ said the former president.
Trump mocked Biden’s handling of multiple national crises in a statement Wednesday morning
White House officials estimate that more than 3,500 additional shipping containers per week will be shipped overnight through the end of the year.
Yesterday, the White House warned shoppers that popular children’s toys could be out of reach for Christmas as Biden and Congressional Democrats struggle to reverse the economic downturn.
Stores across the country have become increasingly bare thanks to a series of bottlenecks in the global supply chain.
Many goods made in China — such as toys, clothing, home appliances and more — are trapped there in factories or in containers aboard freighters offshore waiting their turn to dock.
There is a shortage at almost every link in the chain; there aren’t enough yard workers to unpack the cargo on the ships fast enough, nor are there enough drivers to get them around on the ground. In stores, retailers don’t have enough workers to unpack them once they arrive.
It has created an economic nightmare scenario where the demand for goods far exceeds the supply, driving inflation up and in turn raising prices for Americans.
Republican lawmakers have often inflated Biden’s $1.9 trillion coronavirus aid package to fuel higher prices.
A recent analysis by investment bank Goldman Sachs estimates that “limited supply goods” are responsible for 80 percent of this year’s inflation overrun, but political criticism is stalling as house and oil prices add to inflationary pressures.
The Biden administration has argued that higher inflation is temporary. Still, supply chain problems have persisted for months after the economy began to reopen and recover after vaccines reduced many of the risks of the pandemic.