When people think of peak season in the context of international shipping, most associate the retail-driven pre-holiday rush in preparation for Black Friday, Cyber Monday, Christmas or Hanukah. What businesses often overlook is as demand falls through November and December, there is typically a second rush leading into Chinese New Year. In this article we will give you insights of its impact on your supply chain along with recommendations on how to best be prepared.
Chinese New Year, which is also known as Lunar New Year or Spring Festival, is China’s most important festival. It starts at the beginning of spring and marks the end of winter as well as the beginning of spring. In 2021 it will be celebrated on February 12 as it is determined by the lunar calendar and its date changes every year. It is not only a celebration for families but also an official week of public holidays. This can mean delays to your shipments and an impact to your supply chain.
The impact on your supply chain
If you’re wondering why Chinese New Year has such a big potential to disrupt your shipments then well, it’s largely because almost all factories and manufacturers in the country are closed for at least a week. Not only that, the reopening process can be gradual with some factories not getting back to full operations for up to a month. Moreover, the holiday does also impact other countries in South East Asia which means further implications to your transportation needs across the entire region. Accordingly, many businesses will look to pull forward their shipping needs which in turn creates capacity crunches and congestion issues in the lead up to Chinese New Year.
So, what should you do to get your freight transported smoothly and without delays? We recommend you book and ship your cargo well in advance to avoid costly delays. Planning and preparation are key. Why? Because shippers look to build up sufficient inventory buffers to cover their business needs for up to a month post Chinese New Year. For higher volume customers, it is equally important you communicate a forecast of your expected cargo to your logistics partner. Then you can ensure they can plan ahead as well to support your needs.
How Twill can help you
Planning around holidays such as Chinese New Year is very important across many regions. At Twill we have an award-winning customer care team in more than 150 countries that ensure reliable delivery to over 300 ports worldwide. Our Twillers are here to help you plan your shipments, so your cargo gets delivered smoothly and without delays in the lead up to Chinese New Year. With us you can book ocean and inland transportation as well as many more services.
Our shipping experts can help you
Art Singarajah, Regional Manager North America, Twill:
“This has been an unprecedented peak season for importers from Asia Pacific to the United States with volumes sustaining at record levels for a prolonged period. It led to equipment and space shortages as well as severe congestion issues across the global network. The situation is expected to persist well into November leaving a small window for shippers to get ahead of the pre-Chinese New Year rush.”
So, get your shipment ready now to avoid the peak season around Chinese New Year.
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