Chinese New Year, as expected, is continuing to cause disruption as the rush to import goods continues. With 2 weeks to go how will the public holiday impact your supply chain?
As China’s largest festival, Chinese New Year involves a mass migration as families travel to celebrate the New Year together. As a result, businesses who trade with China can expect an impact on their supply chain as companies in China close down to join in with the celebrations.
Ongoing disruption is expected over a 4 week period as many organisations will give their employees time off to travel home beforehand. This could mean that up to two weeks before Chinese New Year, most factories in China will halt production. As the festivities begin no new orders will be accepted as suppliers, and factories close to partake in the celebrations, and production may not start again for up two weeks after Chinese New Year.
As production slows down during Chinese New Year, sea freight carriers usually reduce capacity with blank sailings and port omissions, therefore space on vessels can become tight. It can also be difficult to source local transport as drivers take time off and travel home in time for the celebrations.
Furthermore the majority of the workforce will take an extended break for Chinese New Year so factories won’t be operating at full capacity straight away as staff will return to work at different times.
Ligentia’s offices across China will be closed during the Chinese New Year public holiday which is 4th to the 10th February, however all other global offices will be open as usual.