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

chinese new year

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

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

Johnston Logistics Announces Full Integration with Dachser Network

Global logistics provider, Dachser, continues strong in extending its international footprint, as the company confirmed the acquisition and re-branding of Ireland-based Johnston Logistics Ltd. earlier this month. As of September 2019, Johnston Logistics Ltd. will become Dachser Ireland Ltd., confirming complete integration with Dachser.

“The rebranding makes the full integration of Johnston Logistics into the Dachser network visible to the outside world. At the same time, the connection to all our systems ensures that the Irish country organization is secure and stable for the future,” explains Dachser CEO Bernhard Simon.

The full integration follows a robust 12-year partnership between Dachser and Johnston, with Dachser taking over a majority of the company’s stake in 2017. Dachser’s primary warehouse and transport management IT systems -DOMINO and MIKADO, were integrated earlier this year in addition to Dachser’s truck presence in Ireland.

“With the integration into the Dachser network, we have found a good, sustainable path for future developments. Both family businesses stand for the same values. And both sides contribute expertise that will ensure further growth—in both our domestic and our export business,” concluded Albert Johnston, Managing Director of Johnston Logistics.

Founded in 1979, Johnston Logistics boasts expertise in dangerous goods transportation and will focus efforts specifically for groupage and to serve customers in chemical, pharmaceutical, hardware, plastics and packaging industries. Johnston reported 346,000 shipments and 120 daily departures during 2018.

“The integration of an experienced and capable partner such as Johnston Logistics is absolutely in line with one of Dachser’s main interests: we want our customers in Ireland to get the maximum benefit from uniform services and quality standards, fixed transit times, and the closely integrated network of Dachser branches throughout Europe,” added  Michael Schilling, COO Road Logistics at Dachser.
Source: Dachser USA

Dachser Adds eActros to Test Operations

Dachser Intelligent Logistics announced it will begin test operations with the all-electric, 18-ton Mercedes-Benz eActros for its Emission-Free Delivery program concept in Stuttgart, Germany. Currently boasting a 4-5 metric ton payload, the eActros test operations will ultimately support Dachser’s current emissions-free delivery efforts with other electric vehicles in the Stuttgart region. In addition to the eActros capabilities, Dachser employs maneuverable, electrically assisted cargo bikes as well as an all-electric 7.5-ton FUSO eCanter truck.

Features of the eActros include 240 kWh lithium-ion batteries capable of charging within two hours, 18 pallet space capacity, and a range of 125 miles. The eActros prototype was projected to begin large-scale production in 2021 by Mercedes-Benz Trucks. 

“We’ll be using the eActros for transporting deliveries both directly to customers and to the microhub in the Heslach district of Stuttgart. And for the last mile, we’ll use pedelecs, electrically assisted cargo bikes that are also part of our emission-free vehicle portfolio,” Markus Maurer, General Manager of Dachser’s Kornwestheim branch.

Dachser continues to implement emissions-free options to determine the best options for sustainable transportation in delivering groupage shipments. In addition to the Stuttgart, Dachser confirmed test operations are underway in other regions including Berlin, Freiburg, Karlsruhe, Cologne, Málaga, Mannheim, Paris, Tübingen, and Ulm.

“We’re not looking to take a one-size-fits-all approach; instead, we want to come up with a range of solutions, each of them focused on optimizing deliveries, routes, and times,” says Stefan Hohm, Corporate Director, Corporate Solutions, Research & Development at Dachser.

Source: Dachser

Dachser USA Expands Automotive Logistics Efforts

Following the successful launch of its Mexico-based automotive competence center, global logistics provider Dachser Logistics announced the opening of its Atlanta-based automotive competence center to support efforts in addressing complex logistics within the automotive market. The customer-focused initiative furthers the company’s goal to implement logistics solutions while expanding its presence specifically in auto logistics.

Dachser is committed to providing superior service and customized solutions to our automotive business, which requires highly trained professionals who understand the nuances of transporting automobiles and their respective parts,” said Vincent Touya, Managing Director Dachser USA. “In the U.S specifically, our customers are responding very well to the hands-on approach of our automotive competence team. We continue to evolve and grow this program to ensure it consistently meets our customers’ needs and responds to the challenges of the marketplace.”

Additional initiatives in place to cater to automotive logistics needs include the opening of Dachser’s Detroit location last August, placing the company’s presence in one of the largest automotive regions in the country.

“The move into Detroit reflects our dedication to meeting the needs of our customers, who require we move closer to their business. Being in Detroit not only provides a closer proximity to our customers, it also ensures that we understand the culture—the heart and soul—of the automotive community, which of course, helps us better anticipate our customers’ needs and provide customized, viable solutions,” said Touya.

Dachser is no stranger to global automotive logistics needs, however. On a global scale, Dachser’s Germany location serves Volvo Cars’ customers as it addresses complex needs with the company’s spare parts business. Dachser delivers Volvo’s spare parts through a shuttle service launched specifically for Volvo, delivering spare parts to Volvo’s warehouses throughout the region and Volvo’s Torslanda, Sweden location.

“We provide Volvo Cars with a solution that is tailored to their logistics needs,” says René Sidor, Managing Director of DACHSER Nordic A/S. “By customizing our approach, Volvo gets a unified logistics solution.”