Here's How Your Business Can Prepare for Chinese New Year Shutdowns - Global Trade Magazine
  January 9th, 2020 | Written by

Here’s How Your Business Can Prepare for Chinese New Year Shutdowns

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  • All business during Chinese New Year will face delayed production time, as will quotation requests.
  • "With the upcoming Chinese New Year period, it is a time of many challenges for importers and exports."
  • “We've reviewed the critical steps that are needed to prepare for Chinese New Year with our customers well in advance."

It’s that time of the year once again where Chinese New Year is around the corner and preparations throughout Asian countries are underway. Countries including Korea and Vietnam are also expected to participate in the Lunar New Year celebrations around the same time as Chinese New Year, requiring other global businesses to consider what preparations need to be made in advance to ensure operations aren’t put to a halt.

In a report from Dachser Logistics, it’s estimated nearly 80 million Chinese workers will be traveling to their hometowns to honor Chinese New Year – also called the “Year of the Rat.” During this time, the Chinese manufacturing infrastructure completely shuts down, from businesses to factories for up to four weeks in the region. Dacher goes on to report that this can impact production for up to two months and lists various ways businesses can be impacted:

-All business during Chinese New Year will face delayed production time, as will quotation requests.

-Many workers will not return to their workplace immediately after the holidays, which means previously estimated production times might be extended.

-If orders are placed late, it is possible they will be placed further back in the production line.

-With more than a month’s worth of orders backed up to start with, factories will favor orders from their preferred partners.

“With the upcoming Chinese New Year period, it is a time of many challenges for importers and exports. Proactive planning and preparation are key to effectively navigate and managing supply chain issues that could occur during this time; ensuring that freight is handled consistently and without interruption. At Dachser, we aim to minimize any impact to our customers.” said Guido Gries Managing Director, Dachser Americas.
“We have reviewed the critical steps that are needed to prepare for Chinese New Year with our customers well in advance. This proactive preparation helps to ensure that there is minimal disruption to their global supply chains.” added Gries.
Dachser Logistics is no stranger to effective planning, however. The leading global logistics provider ensures its customers know exactly what measures can be taken to avoid delays, when holiday business hours take effect and how to keep the supply chain running for each anticipated holiday or possible disruption. These tips are as follows:

-Build up adequate inventory, considering a period of up to four weeks after Chinese New Year and even find out if your Chinese source has inventory in non-Asian locations, so you can use other supply chains.

-Inform your forwarder about your priority shipments, in case there is limited space.

-Book shipments well in advance of Chinese New Year.

-Reserve space on passenger flights for shipments that cannot be delayed. The rates are slightly higher, but this measure will keep your supply chain running.

Source: Dachser Logistics