Long after the clocks have chimed midnight, the fireworks have sizzled, and the Champagne has been toasted here in the West, celebrations are ramping up in the East.
And no one does New Year like the Chinese. The event is an all-encompassing celebration that has a knock-on impact all around the world.
Wondering how far-flung partying can affect you and your freight? Find out in this blog.
All About Chinese New Year
Chinese New Year is an annual celebration that lasts a whopping 15 days. The party starts on the first new moon of the year, which usually falls between the 21st of January and the 20th of February, and the celebration is thousands of years old.
Families come together for the occasion, travelling back ‘home’ from all over to take part in celebrations that are solemn and steeped in tradition. The celebration focuses on removing the bad and the old and bringing in the new, and in the run-up, families will declutter and clean their houses.
Heard about the Chinese Zodiac before? The repeating 12-year cycle of animal signs is based on the lunar calendar, and 2024 is due to be the year of the Dragon.
How CNY Affects Business Globally
We love a party here at Millennium. But with a 2-week long CNY celebration comes a 2-week long shut-down of pretty much all Chinese businesses.
Imagine Christmas Day here in the UK lasting up to 15 days, and you start to understand how obstructive this could be.
In 2024, CNY will begin on 10th February and last until the 24th. The shutdown of China’s businesses will last at least 7 days but could, in fact, cover the whole period from start to finish. During this time, factories and distribution centres close and workers will be travelling back to see family and engage in various forms of celebratory activities.
It’s quite a break!
These potential 14 days of shutdown create a massive backlog in freight services because everything is suspended during that time, with all tasks needing to be actioned when things are back to normal. Demand also increases following the reopening of Chinese businesses, which can cause further delay for anyone shipping to and from the country.
All in all, you’re looking at 4 to 6 weeks of upheaval before things get back to normal. And this timeline can present numerous freight challenges worldwide.
Freight Challenges In CNY
As an ancient tradition, Chinese New Year has been on the calendar long before there was even a calendar to be on. And bearing the length and breadth of the holiday you can imagine the effect it has on the global freight industry.
Most businesses that deal with trading with China know to expect this event every year, but it doesn’t make it plain sailing. Not only do the dates change every year, but the run-up to CNY is already pretty jammed, thanks to Christmas.
So, if you deal with cargo coming from China, you need a robust plan way ahead of time that factors in both Christmas closures in December and CNY closures in January and February. Planning way in advance ensures you can continue to keep your clients and customers satisfied without huge delays and disappointment.
Shipping costs also rise at peak times, such as in the run-up to Christmas or the weeks following CNY when everyone is desperate to get back on track. And finally, as an extra consideration, containers are in demand, meaning finding room to ship your goods might be a challenge.
Planning Ahead: Avoiding Chinese New Year Freight Problems
Avoiding catastrophes in your supply chain starts early. You need to have a meticulous plan in place to ensure your cargo doesn’t get delayed.
Your first step to avoiding CNY freight problems is to work in tight collaboration with suppliers and manufacturers. This way, you can find out their planned closures way ahead of time and place your orders accordingly.
In order to avoid disappointing your customers, it’s also essential that you have advanced booking and scheduling with freight carriers. You wouldn’t believe the volume of last-minute requests we get! Take the stress out and get covered ahead of time.
Strategically managing your inventory to accommodate the CNY period is crucial. If you run out of particular goods at a critical time, it could be weeks before you restock. Not ideal if it’s time-sensitive products like Valentine’s gifts!
Is Chinese New Year Already On Your Calendar?
If you ship goods from China, looking ahead to Chinese New Year is a pivotal part of your trade year.
Not planning for the 2-week holiday could mean huge delays, costly ramifications, and even running out of goods at inopportune moments… Not the best way to foster trust with your customers!
Are you worried about planning ahead of Chinese New Year? Looking for advice on the best way of importing goods from China? Get in touch with our friendly team of experts today.