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  • Jasmine Miller

The Impact of the Chinese New Year on Logistics

As we step into the New Year here in America, the Chinese New Year is just around the corner. But what does that mean for Manufacturing and Supply Chain management?

Chinese New Year starts February 10th, 2024, and ends February 24th, 2024, though traditionally, Chinese Lunar New Year activities will start as early as three weeks before Chinese New Year’s Eve, which is February 9th, 2024.

With these dates in mind, we consider what the next couple of months will look like:

  • Early/Mid-January: Factories begin to slow down production, and halt manufacturing and operations. You may not be able to get in contact with your suppliers during this time, and will not be able to get in touch with the factories till after the holidays. Major Chinese ports experience a rush to ship goods, which also may cause quality issues.

  • End of Jan/Start of Feb: Workers will start to leave factories at this time. Ports will have limited operational capacity. There will also be an influx of shipments, the overload likely resulting in delays.

  • After the Chinese New Year: Workers will be returning to factories, and operations will gradually return to normal, though the possibility of quality issues are still possible during this time. Please note that it usually takes 4-6 weeks for factories and port operations to return to normal levels after the Chinese New Year.

Many of the factory closures will lead to a delay in supplies, and a halt in operations for 1-3 weeks. There will be an increase in shipping demand before the holiday week due to businesses pulling forward their shipping needs, creating capacity crunches. This puts a particular restraint on shipments and creates a lengthened transit time, especially with the current issues in the Panama Canal and the Red Sea Transit.

The increase in demand and low supply for products also lead to rates inflating. High Freight volume can also lead to higher time for documentation and customs clearance processes.

Alongside Chinese factories, Vietnamese factories will also have a break during this time as well to celebrate their New Year. Vietnamese factories may have a shorter break period, and may not shut down completely, depending on the number of orders they receive. This may make it more suitable to order products from their factories.

That being said, Audit Logistics is dedicated to caring for our client's needs. Please feel free to reach out to your Freight Manager with any questions or concerns about whether your project may be affected during this time. We continue to monitor all vessels and container routes and will keep all parties aware of any changes in schedules during this time.


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