Chinese New Year 2024 and its impact on exports and imports

Chinese New Year, also known as Spring Festival, is one of the most important festive periods in China.

For importing and transporting companies, this festival implies specific logistical challenges.

Production slows down operations are limited and transportation is delayed, causing major supply chain disruptions.

What is Chinese New Year?

The dates of this festival vary each year because it follows the lunar calendar.

Celebrations typically last 15 days and culminate with the Lantern Festival.

Preparations for the Chinese New Year begin three weeks in advance: factories slow down, close operations and workers travel back to their hometowns to celebrate the new year with their families.

In 2024, the Chinese New Year will begin on February 9 , with the 10th being the main festival day , and concluding with the Lantern Festival on February 24 .

It takes 4-6 weeks for factories and port operations to return to normal levels after the holidays .

shipping demand before the holiday week

In the run-up to the Chinese New Year , companies bring forward their shipping needs, resulting in capacity constraints.

There is an increase in demand for maritime transport, particularly exports.
This causes container unavailability, transportation delays, and increased shipping costs.

Due to the high season, congestion at ports is expected.

Road, rail and air transportation networks are experiencing significant delays due to increased traffic and holiday-related labor shortages.

This affects the movement of goods to and from factories, distribution centers and ports.

Higher shipping costs and processing time

Increased demand and low supply lead to inflated rates.

Chinese New Year , this means exorbitant freight rates and additional surcharges in peak season. As the cargo volume is high, it also takes more time for the documentation and customs clearance processes.

Shortage of containers and ships for exports

The shortage of empty containers remains a key source of disruption during the Chinese New Year , caused by a domino effect of factors, starting with growing global demand and operational challenges.

How can I prepare my supply chain for Chinese New Year 2024 closures?

Preparation and planning are the key to managing your logistics and supply chain operations to minimize the effect of Chinese New Year on your business.

Evaluate the reliability and resources of your logistics agent
Evaluate the experience, reliability and track record of your logistics agent in handling shipments during the Chinese New Year.
Plan ahead and communicate your needs clearly.
Keep the dates of Chinese New Year 2024 in mind when planning your shipments.
Speak to your freight forwarder to understand the possible causes of disruptions and the plan of action in case of delays.
Reserve containers or shipping space in advance .
Evaluate your shipping requirements and secure shipping space with your carrier at reasonable freight rates well in advance.

Review data for effective inventory management
Analyze past customer behaviors and historical order patterns during the Chinese New Year season.
You can guide their inventory planning, helping them anticipate demand and ensure they have additional inventory to serve their customers in the event of shipping delays.

Any other questions you may have in this regard, do not hesitate to contact us, Guangzhou China-Latin Logistics, class A freight forwarder located in the export and import center of China, we are happy to assist you.

Written by YEN