Chinese New Year arrives on the 10th of February 2024, therefore planning to avoid disruption to your supply chain as a result of the two-week shutdown that follows may be something to start thinking about in December and early January.

Effective planning is critical to the supply chain and so it is worth bearing in mind the  following factors which could impact the flow of goods around this time.

  • Shipping Delays: Many factories and businesses in China shut down or reduce operations during the Chinese New Year holiday. This can lead to delays in the production and shipment of goods.
  • Port Congestion: As businesses rush to meet deadlines before the holiday, there is often a surge in shipping activities, causing congestion at ports. After the holiday, there can be another influx of shipments, leading to further congestion.
  • Container Shortages: Increased demand for shipping containers before and after the holiday, combined with delays in returning containers and an increase in reduced/blanked sailings by shipping lines may lead to decreased availability of bookings and container shortages.
  • Increased Shipping Costs: Due to the increased demand for shipping services before and after the Chinese New Year, freight rates may rise. Additionally, delays and congestion can result in additional costs for storage and demurrage.
  • Supply Chain Disruptions: The shutdown of factories and businesses during the holiday can disrupt supply chains, impacting the timely delivery of raw materials and finished goods.
  • Labor Shortages: Many workers in China travel to their hometowns for the Chinese New Year celebrations, leading to temporary labor shortages. This can affect various industries, including shipping and logistics.
  • Extended Lead Times: Buyers and importers may experience extended lead times for orders placed around the time of the Chinese New Year due to the disruptions in production and shipping schedules.

Therefore, planning ahead could be critical, the above can be alleviated by trying to bring more urgent orders forward to depart China during December, or perhaps the first week of January.

Of course, we will endeavour to ensure that any bookings around Chinese New Year are moved as smoothly as possible.

Should you require any further information regarding the above, please do not hesitate to contact a member of the Westbound team.

If you have any questions regarding the above, then Westbound are here to help. So, please do not hesitate to contact us.