Lunar New Year, or Spring Festival as it is also known, is one of the most important holidays in China. This year’s celebrations start on Friday 9th February and finish with the Lamp Festival on Saturday 24th February.
This is a time of great logistical challenge. Production falls, operations are restricted, schedules are disrupted and transport is delayed, causing significant disruption to the supply chain.
Would you like to have a more detailed look at the events of the season? And how does this affect the shipping of your goods? Take a look at this publication.
What happens in the days before and after Chinese New Year?
- Early January – Factories start to slow down production.
- 18 January – 25 January – Companies stop producing and operating, and the rush to ship last-minute goods begins.
- 26 January – 9 February – People start going on holiday and ports have limited operational capacity.
- 10 February – 17 February – Chinese New Year.
- By the End of February – People start to return to the factories and operations slowly return to normal.
NB: After the festive season, factories and port operations take 4 to 6 weeks to return to normal.
How will your shipments be affected by the Chinese New Year 2024?
- Factory Closure Results in Interruption of Product Supply
Not only in China, but also in other East Asian countries, many factories are shutting down for a period of time ranging from two to four weeks. This pause in production affects the supply of goods to global markets.
- Reduced Responsiveness and Suspension of Operations
A significant proportion of the population goes on holiday during this period. As a result, there is a shortage of manpower in ports for more than two weeks, which limits the ability to carry out operations and response capacity.
- Increase in Transport Procurement Weeks Before
In the weeks leading up to the Chinese New Year, demand for transport increases, leading to equipment shortages and unavailability, transport delays and higher freight rates.
- Port Congestion During Peak Season
Increased traffic is causing congestion in ports, causing delays and directly affecting the movement of goods to and from factories and distribution centres to ports.
- Higher Costs and Transit Times
During this time, increasing demand and decreasing supply results in rising freight costs and additional surcharges. At the same time, document delivery and customs clearance processes tend to take longer.
Sources:
Maersk. (2024). Chinese New Year 2024: How to maximise supply chain and logistics efficiency. Consultado a 22 de janeiro de 2024, em: https://www.maersk.com/logistics-explained/seasonal-trends/2023/10/02/chinese-new-year-2024
The Freight Course. (s.d.) The Effects of Chinese New Year (CNY) on Shipping. Consultado a 22 de janeiro de 2024, em: https://www.freightcourse.com/chinese-new-year-effects-on-shipping/
