Chinese New Year is the most important holiday in China and one of the events with the greatest impact on global trade. During this period, factories, ports and customs offices significantly reduce their activity, and that affects every importer in the world.
The official holiday and the actual stoppage
The official holiday lasts about a week, but in practice activity drops two to three weeks before and recovers slowly during the two weeks following the holiday. Workers from rural provinces return home and not all of them come back to the same factory.
Effects on supply chains
- Saturation of ports and shipping lines in the weeks leading up to the holiday.
- Increase in sea and air freight rates due to seasonal peak.
- Production delays and missed delivery dates.
- Quality issues in rush orders produced just before the holiday.
How to plan
- Place orders three months in advance.
- Book shipping space early with your freight forwarder.
- Schedule the pre-shipment inspection with margin.
- Build a small additional safety stock.
At MingTa Group we plan operations with our clients all year round to soften the impact of Chinese New Year. Contact us to design the right strategy for your company.