By Lisa Baertlein

LOS ANGELES, (Reuters) – Isaac Larian used all available tools for more than 2 years to break global supply-chain bottlenecks. He also kept retailers stocked up with sufficient LOL Surprise! and Bratz. To meet the pandemic demand, dolls When asked how he prepares for the West Coast port labor negotiations, MGA Entertainment’s chief executive said, “I pray twice a day.” Larian, along with a few suppliers to major retailers like Walmart (NYSE), Amazon.com(NASDAQ:), and others. Target (NYSE:) Reuters was informed that COVID-related Ocean Shipping snafus had exhausted all the workarounds that they could use in the event that negotiations between 22,000 workers at 29 West Coast ports and their employers reached an impasse following the expiration of their contracts on July 1.

On Tuesday, for the first ever time, the International Longshore and Warehouse Union and Pacific Maritime Association (PMA), employer groups will meet.

Any delay in shipping could result in a blockage at No. Los Angeles/Long Beach is the U.S.’s largest seaport, handling 58.1% Far East goods. Larian said that this would “hurt even more the already fragile U.S. economic system.” He is one of the many importers requesting the White House intervene – just as it did in the past.

These talks are crucial for retailers and suppliers because Christmas seasonal merchandise will begin arriving in U.S. ports starting June.

Jay Foreman CEO, Tonka Truck and My Little Pony Seller Basic Fun said that Chaos is the new Normal.

He stated that trying to get around shipping problems only made things worse, added costs, and caused headaches.

The pandemic-fueled cargo surge that overwhelmed Los Angeles/Long Beach port ports caused importers to reroute goods, spreading backwards support at other U.S. seaports such as Houston, Charleston, and New York. This shift led to a loss of 4.6% in West Coast market share year over year to Eastern Seaboard and Gulf Coast ports, according to Container Trades Statistics and Xeneta data. According to importers, distance and border- and infrastructure barriers have made it difficult for shippers to access ports in Canada or Mexico. Some shippers may consider air transportation, however airport cargo facilities can be expensive and jammed when there is high demand.

Suppliers like Mattel, MGA, and Basic Fun are all in this race! They are rushing to get goods in as quickly as possible. Hot Wheels manufacturer Mattel and Barbie’s inventories jumped 55% annually to $969 Million for the quarter ending March 31. Larian, MGA CEO plans to bring in 40% to 40% of the 4,700 remaining 40-foot containers for this year, two to three months ahead of normal. New COVID locksdowns in China have thrown a wrench into those plans. They slow down the movement of goods at Chinese ports, and entrap hundreds more MGA containers.

The contract negotiation parties on either side of the dispute claim they have an interest in West Coast ports being open and flourishing, but they disagree on important issues.

Employers such as Maersk and Mediterranean Shipping Co (MSC), which are enjoying record profits, represent the PMA. They want to make cargo processing more efficient by using automation. The ILWU dockworkers – the largest union in the nation – helped keep ports going despite many workers dying from COVID. They work to keep jobs.

Despite the fact that there haven’t been any ILWU strikes during coastal-wide negotiations since 1971, they are still contentious. There have been labor slowdowns or shutdowns during every negotiation going back to the 1990s, said Peter Tirschwell, a vice president at S&P Global (NYSE:) Market Intelligence. Obama summoned the labor secretary of the United States to assist in negotiating a 2015 deal after talks collapsed and dockworkers quit work for 8 days. This cost an estimated $8 billion and caused congestion on U.S. highways.

Since shipping delays can fuel inflation, President Joe Biden has been keeping the ports in mind for several months. This is fueling discontent among voters ahead of November’s mid-term elections. Biden has sent his labor secretary, who is part of a task force on supply chains to ports up and down West Coast.

Marty Walsh, U.S. Labour Secretary, stated in a statement that “I am ready to assist facilitate productive conversations which result in the best outcome für workers and our economy.”