Chinese New Year Shipping Rates: How To Cut Cost.

It’s about that time of year when we must budget and prepare for the usual surge in shipping costs caused by the activities in China and other East Asian countries in preparation for the upcoming Lunar New Year Holiday.

An increase in shipping rates is expected as a result of this upcoming holiday, but how much will it be this year?

This article discloses how much shipping costs increase during the Chinese New Year and provides strategies for securing the most cost-effective shipping rates.

Do you want to know the exact cost of shipping your goods right now? Contact us today and we will give you a free quote.

How High Do China Shipping Costs Get Around the Chinese New Year?

There is always a spike in shipping rates about a month or two before the Chinese New Year celebration.

This increase is not fixed but ranges from 30-60% in Air Freight and  20-30% in Ocean freight.

For instance, shipping a pair of women’s shoes weighing 1.5 kg during the Chinese New Year holiday could see a 56% increase in fees compared to the usual shipping rate.

Price Comparison Before and During the Chinese New Year

We have assisted clients in shipping a wide range of goods, even at peak rates. This experience inspired us to create this article, offering practical strategies to help you avoid excessive shipping costs.

Why Do Shipping Rates Spike During Chinese New Year?

1. The Expected Shipping Delay:

The primary reason for the spike in shipping costs from China during the Lunar New Year holiday is the anticipation of significant shipping delays during the holiday.

Hence, all businesses rush to ship their goods before the holiday. This causes significant disruptions in the supply chain and drives up the cost of shipping goods.

2. Surge in Demand:

With businesses worldwide scrambling to stock up before production halts in China, the demand for shipping services increases greatly.

Shipping costs rise in response to increased demand, so it’s essential to anticipate this and plan accordingly.

3. Limited Shipping Capacity:

With finite container availability, most shipping lines prioritize higher-paying shipments, which drives up Ocean Freight rates.

Some businesses resort to air freight for faster delivery, but this also results in rate increases as there is always limited capacity to serve the demand.

4. Post-Holiday Effects:

After the holiday,  it takes about 2 weeks or more for factories and logistics networks to return to full capacity.

This prolongs the period of elevated shipping rates as businesses compete for limited capacity.

For How Long Will the Shipping Rate Be Affected Due To Chinese New Year?

Although the Chinese New Year holiday is only seven to eight days, its effect on the supply chain usually spans months.

In our guide on how to avoid the shipping delay caused by this holiday, we said that the delay usually lasts from mid-December to mid-March.

You should expect the shipping rate to be affected for the same period too.

You can reach out to our experts at SARA to know what the shipping rate is currently.

How To Mitigate Increased Shipping Costs

1. Early Booking:

The very basic thing you can do is to plan ahead, place orders on time and book shipping services way before the supply chain is affected.

To achieve this, you have to ensure that your orders and shipments are ready to move in November or early December.

Evaluate your inventory, project your customers’ demand, and stock up on products to meet anticipated needs for at least two months or more.

Is it too late to plan early? Try out the strategies below.

2. Leverage Freight Forwarding Expertise:

Utilising the services of a freight forwarder in such situations can provide a strategic advantage, helping you reduce costs and thereby streamlining the shipping process.

An experienced freight forwarder knows the best shipping line to use for a good delivery time and cost. They know the best route that will be cost-effective. They can also provide recommendations that can save you from hidden or additional costs or charges.

At SARA, we have freight forwarding experience, spanning over 20 years of shipping goods from China and many other countries.

Contact us today and we will guide you through this.

3. Consolidate Shipments: 

Rather than using a Full Container Load (FCL), one way you can mitigate the high shipping cost is to use Less-Than-Container Load (LCL). 

This way your shipment is consolidated with other business goods and you don't have to pay the full container price.

This is only possible for those who don’t have a lot of products to keep in their warehouse during the holiday.

If you need to ship large quantities of goods and require warehouse space to store them, contact us, and we’ll provide the support you need to get everything sorted.

4. Explore Alternative Supply Chain:

Can your product be sourced from another country?

If so, consider exploring that option, especially if it offers a more cost-effective solution.

You can use the assistance of our experts at SARA to source for suppliers and manufacturers in other countries. 

They will help you find a reliable source for your goods and inspect the factory and the quality of the products to ensure that they meet your standards.

You can reach us here.

Benefits of Partnering with SARA During Peak Seasons like this

1. Access to Expert Knowledge:

At SARA, we have professionals who have been in the shipping industry for over 20 years. They possess deep expertise in handling various shipping scenarios and seasons, ensuring tasks are executed efficiently and effectively.

Partnering with SARA provides your business with invaluable expertise and tailored guidance for your supply chain.

This ensures you stay ahead of the competition, even during peak periods like the Chinese New Year holiday.

2. Competitive Freight Rates:

With our years of experience in the shipping industry, we have established relationships with major carriers, enabling us to negotiate favourable shipping rates for our clients. 

During peak seasons like the Chinese New Year holiday, when rates typically soar due to high demand, these partnerships help us secure discounted prices and priority space allocation, ensuring your goods are shipped promptly, even when capacity is limited.

We also help you analyse your shipping needs to recommend cost-saving solutions such as route optimization and shipping mode selections. 

All these help mitigate the steep rate hikes typically seen around Chinese New Year.

3. Seamless End-to-End Solutions:

SARA Procurement Services Limited offers comprehensive logistics services which include:

• Ocean freight,
• Air freight,
• Freight forwarding,
• Customs clearance,
• Product sourcing,
• International payment solution,
• Haulage, Warehousing and so on.

With SARA you have all you need for a smooth supply chain in your business.

4. Real-Time Tracking and Updates:

Tracking your goods in transit with real-time updates can provide peace of mind, ensuring you know their location and that they are safe and on schedule for delivery.

With SARA, you can use the tracking number we give you to track the location of your goods especially when delays are common during peak seasons. You can contact us any time for any update on your shipment.

5. Risk Mitigation

SARA helps businesses proactively address potential challenges and risks that could affect their supply chain.

We can help you manage issues like port congestion, container shortages, contractual disputes, price fluctuations, and currency exchange risks.

We have a guide on how we handle many of the common supply chain risks. You can check it out for more information.

Partner with SARA for Cost-Effective Shipping During Peak Seasons.

We are always available to receive your shipping orders even during the Chinese New Year holiday.

Visit our contact page, tell us about your shipping needs, and we will get your goods to your doorstep.