Chinese New Year Shipping Delay: How To Avoid It.

If you ship goods from the countries listed below, this article is for you.

• China,
• Vietnam,
• Singapore,
• Malaysia,
• Philippines,
• Indonesia, and,
• North & South Korea.

The above countries celebrate the Lunar New Year commonly known as the Chinese New Year between January and February.

This article covers what this means for your supply chain as a business owner and how to prepare for any form of shipping delays as a result of this holiday.

Why Chinese New Year Causes Shipping Delays?

The Chinese people take a break from work during the Chinese New Year holiday to celebrate with their families.

This means there will be a reduced workforce in the country, affecting manufacturing and other logistics operations. Factories stop production, and warehouses shut down operations.

To avoid disruptions, businesses often aim to move goods in and out of China weeks before the Chinese New Year begins.

This surge in activity leads to increased freight volumes, particularly in December and early January before the holiday and in March after the holiday.

Consequently, the supply chain industry experiences delays from East Asian countries due to:

Increased demand before and immediately after the holiday,

• Slower customs processing,
• Inventory challenges, and, 
• Reduced workforce available.

In this article, we will cover how we help our clients stay ahead during this holiday.

How Long Do Asian Factories Shut Down for Chinese New Year?

Chinese New Year does not fall on a fixed date, as it is determined by the lunar calendar. However, it typically occurs each year between January 21 and February 20.

Although the holiday is only seven to eight days, the shutdown of factories and many other operations lasts several weeks, sometimes a month.

This is because workers typically start travelling home for the holiday several weeks before the celebrations begin. Factory production begins to slow as early as mid-December, with full shutdowns occurring between late January and mid-February.

The effects of the Chinese New Year holiday on the supply chain can extend into March, as it typically takes 1-2 weeks for factories and logistics operations to resume normal activity levels.

“With these, expect a delay in your shipment each time you ship goods from East Asia between mid-December to mid-March.”

Contact our shipping experts for assistance with urgent shipments. We’ll evaluate your situation and provide professional guidance to ensure your shipment reaches you as quickly as possible.

I need to Ship goods urgently during the Chinese New Year. What Do I Do?

Note: If you haven't planned ahead, it will be difficult to get that product delivered to you from China or other East Asian countries. Partner with trusted logistics experts like SARA to receive tailored advice for addressing your urgent shipping needs effectively.

Here are 2 things you can do nevertheless:

1. Leverage Air Freight for Urgent Shipments:

There is a possibility that a few cargo companies might still be in operation during the holiday. You can make use of their Air Freight services. 

If not, you would have to hire a cargo plane to ship your goods down to your country, which can be costly.

Reach out to our expert and we will let you know if any of these options are possible at the moment.

2. Diversify Suppliers:

Instead of purchasing these urgent products from your supplier in China, you can check out other countries that do not observe the Lunar New Year holiday.

We have product-sourcing experts who can assist you with searching for good suppliers in other countries and vetting them for you. They also ensure that their product quality is up to your standard. Reach out to us today.

How to prepare for Chinese New Year Shipping Delays?

1. Plan and Place Orders Early:

Planning and placing orders early is a key strategy to mitigate the impact of Chinese New Year shipping delays.

This way you can avoid pre-holiday shipping rush, and supply chain bottlenecks that will affect your business operations. 

Hence:

Place orders as early as possible in November or December.

Secure production slots with manufacturers in advance.

Book freight space early. Click here to book now. 

2. Increase Inventory:

With your plans for the holiday, ensure that the stock you have available will be enough to serve your customers' needs during the holiday.

Conduct a demand forecast to determine optimal inventory levels for high-demand products during the Chinese New Year period and get them available in the warehouse. 

You want to provide for unforeseen delays even after the holiday, as it will take a few weeks for business operations to return to normal in China and other East Asian countries.

Don’t have a warehouse capable of storing all the products you need in stock during the New Year celebration?

Reach out to our expert and we will provide you with warehousing spaces to store your goods and request them during the Chinese New Year holiday as the need arises. No delays.

3. Communicate with Suppliers:

Maintaining clear and consistent communication with suppliers is essential for preparing for Chinese New Year shipping delays.

Understand their holiday plan, when they will shut down operations, and resume operations. 

Discuss the number of goods you would want them to provide before they shut down and the number of goods you want them to produce for you immediately after they resume.

This would help you get your goods faster than the other supplier’s customers.

4. Educate Your Team and Customers:

Ensure that your procurement team is aware of this yearly celebration that can impact your business so plans for it can start much earlier.

You can also inform your customers who regularly request a high quantity of goods. Ask them if there is the possibility of high demand coming in during the holiday period and advise them to place the order much earlier or make the product available in your warehouse.

5. Collaborate with Experienced Logistics Providers:

Another way to avoid shipping delays is to work with experienced shipping and logistics companies.

The experts can help with better planning for times like this in the shipping industry and also give you advice based on their experience helping other clients in the past.

Prepare For the Lunar New Year Shipping Holiday with SARA.

At SARA, we have shipping and procurement experts with over 20+ years of experience helping businesses with international shipping from China and other parts of the world.

We have successfully ensured seamless supply chains for our clients during previous Chinese New Year holidays, and we’re ready to do the same for your business. 

Reach out to us today and let's discuss your needs.