Chinese New Year in 2019 is coming up soon on Tuesday, February 5th, where many celebrate the Year of the Pig! As this may be a joyous time of the year for those who partake in its traditions, this also means certain factors that may affect you. If you source products to and from China, then it’s important to understand the ins-and-out of the Chinese New Year. Here are 3 key things to be aware of with it already around the corner!
Closures & Delays
The holiday may be on the one day of February 5th, but do note that the official celebration and festivities actually run for one week from February 4th to 10th. This can mean there is at a minimum, one week of company closures across China during this time but can also halt for up to three weeks. Then a high risk of backlog is very likely so even after everyone is back from their break, it can also take a substantial amount of time to be fully functional and on track again.
Shipping Prices & Limitations
There are a number of factors that influence the shipping prices, availability, and time for products. Shipping rates are mainly based on supply and demand so therefore with the high intensity of shipments being requested before factories and ports close, international and local costs typically increase. In addition to prices rising during this time, there is limited capacity for shipments and orders on the different modes of transport. This can be because of early closures resulting in a lower number of available transports, or simply not enough room to fit your containers due to the rush before the holiday. Further to that, containers are also at a risk of being bumped multiple times which can add weeks to your order arriving.
Preparation in Advance
As stated above, there are a variety of repercussions that is already occurring as you read this post. The best way to avoid these affects as much as possible is to be sure you are prepared. Understand when your manufacturers and suppliers plan to slow down production, and when official closures will occur. Be aware of when you should be shipping your products in order to lower the risk of price increases and delays. If you have any other questions or concerns, it is always beneficial to be upfront about it so that you can be ready for the next Chinese New Year affects.
Here at JORI International Ltd., we're happy to answer any questions about importing or exporting products if you need any assistance – be sure to Contact Us today at firstname.lastname@example.org or 403-571-3200, we’ll be sure to take care of this for you!