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Chinese New Year

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Emerging Markets| Shipping Tutorials

Chinese New Year

  • 12 October 2019

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What Does the Chinese New Year Mean for your Supply Chain?

The Chinese New Year is the most important and longest holiday in China. If you are sourcing products from China, it is important to consider the effects of this holiday on your supply chain.

Chinese New Year is a unique event in the world of logistics, as businesses and factories shut down for three to four weeks to allow millions of workers to return to their hometowns to celebrate the festivities with their families.

Prepare your Logistics for the Chinese New Year by Considering the Following:

  1. Land Transportation

There is a significant shortage of drivers during this time, as most of them return to their hometowns. The transportation fees spike 2-3 times higher than normal before and during the holiday period, which normally starts two weeks before the holiday.

  1. Customs

China’s Customs work throughout the holidays, except for three days as public holidays; however, according to a “holiday procedure”, Customs may have fewer workers, which could result in longer processing time.

  1. Carriers’ Capacity

During this period, terminals are filled with cargos and most people want their containers to get on the next ship. When demand increases for a place on aircrafts and ships, prices can skyrocket, and communication with your logistics providers can become challenging.

To help reduce the negative impact on your supply chain:

  1. Create an effective forecast plan
  2. Optimize your inventory
  3. Plan your urgent cargos in advance and pre-book your space

For more information, visit www.agility.com/smartshipping

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