By Gina Boudon, Director of International Line.
The Chinese New Year, a holiday of great significance in China and much of Asia, is also a critical event in the global logistics calendar. In 2024, like every year, the celebration is expected to have a substantial impact on global import operations. This period, characterized by prolonged factory closures and a slowdown in production, affects not only China but all companies that depend on Asian manufacturing and trade.
During Chinese New Year, factories and businesses in China typically close for at least two weeks, although disruptions can last up to a month. This closure results in significant delays in production and the supply chain, impacting importers and exporters around the world.
Chinese New Year 2024 is expected to be particularly challenging, due to growing global demand and the continued recovery of supply chains following previous disruptive events. Companies that rely on Chinese suppliers will need to prepare for longer delays, port congestion and increased competition for sea and air freight space.
Here, some tips to navigate the Chinese New Year 2024 in imports:
Advance planning: Start planning several months in advance. Secure your orders and confirm delivery times well before the festival begins.
Supplier diversification: Consider diversifying your suppliers so as not to depend exclusively on China. Explore other regions and markets to reduce risk.
Inventory Management: Increase your inventory before the holiday to meet demand during closing and delay periods.
Communication with suppliers: maintain constant and clear communication with your Chinese suppliers. Understand its deadlines and restrictions during this period.
Choice of strategic transportation partner: It is one of the most important conditions when choosing which company will be in charge of transporting your products. It must be a company that has the skills and capabilities to visualize, react and communicate in time the unforeseen events to which transportation is subject. Each error entails an associated extra cost that could sometimes leave a significant loss in the acquisition of the merchandise.
Preparing for the post-holiday: Prepare for a backlog of orders and increased production after the Chinese New Year. Coordinate logistics in advance to handle the increased flow of goods.
Finally, it is important to remember that the Chinese New Year Celebration period is the annual festival that celebrates the beginning of the new year in the traditional Chinese calendar. This time it will begin on Sunday, February 12, 2024 and will end on February 26.
