It is no secret that China dominates in global manufacturing and export industries. As a result, much of the globe has come to rely heavily on this ‘World Factory’, which is why businesses worldwide need to take heed and prepare for the upcoming Chinese New Year holiday.
Chinese New Year will commence on January 22, 2023, and end on February 5, 2023. Nevertheless, many production sites will begin to decelerate and close down up to a month prior as this significant tradition is the only holiday where people get to spend extended time with their families.
As many ports, factories and production sites close, it can disrupt supply chains and impact the logistics of businesses. Preparing ahead of time will allow you to minimise the disruption of delays in your supply chain management system.
Challenges to expect
Factory closures halt goods delivered from factories to ports, and ports will function at a lower capacity due to the seasonal shipping rush from Chinese New Year closures. Ocean freight services may be full or overbooked earlier than usual, causing challenges in securing container space as carriers will be in high demand. As a result, this will increase rates for freight and other delivery services in and out of China.
What you can do to avoid stressing your supply chain
If you want to avoid disruptions in your supply chain, placing orders well before the Chinese New Year is best. By preparing in advance and being mindful of deadlines, you can ensure your freight delivery runs smoothly.
Check-in with your manufacturer
Consult with your manufacturer and factories ahead of time on closures and final shipment dates to confirm that your supplies will reach you before the holiday. By booking your ocean freight at least three weeks in advance, you will have time to plan for any potential production delays and avoid disruptions in your supply chain.
Organise your inventory to overcome delays or shortages
The ramifications of delays in shipping and manufacturing can be long-lasting. If you’re receiving shipments from China, it’s best to communicate closely with your supplier. The dates of these shipments can change in the weeks leading up to Chinese New Year, as factories are working at full capacity. Ensure you have alternatives, such as organising inventory to avoid shortages due to delayed or slow shipments.
With proper planning and communication, you can prepare your supply chain for the impacts of the Chinese New Year, ensuring that you can continue serving your customers during this time. By working with freight services providers, freight forwarders, port authorities and logistics experts, you can mitigate any potential disruptions and ensure seamless operations during this period of production closures.
Need to get your stock moving quickly? Talk to Stockwell about our air freight options.
Our connections with major global airlines provide us with a wide range of freight forward solutions allowing us to move cargo fast and efficiently.
Get in touch with your logistics partner
Having a trusted and reliable logistics partner with the expertise and resources to help clear any complications during the Chinese New Year period will not only ease seasonal shipping stress but ensure that your products reach you and your customers on time.
Get in touch with the Stockwell International team today, we can help with your freight booking needs, and the in-house booking office can arrange all your FCL movements in the lead up to and around Chinese New Year.
