How Does the Logistics Market Worldwide Change in the Context of Some Asian Countries Celebrating Lunar New Year.
Lunar New Year, also known as the Spring Festival, is a holiday celebrated by many Asian countries to mark the beginning of a new lunar cycle. It is known as the world's largest human migration, with billions of people traveling to visit their families and loved ones.
During Lunar New Year, the entire manufacturing and logistics infrastructure of mainland China comes to a complete standstill. Lunar New Year (LNY) is one of the few government-mandated holidays and one of the only opportunities of the year for workers to return to their rural homes.
1. How does Lunar New Year impact logistics?
- Factories shut down
While LNY technically only lasts for one week, many factories have closed for up to two weeks to allow for travel time. This two-week shutdown - plus the necessary turnover time after workers return - leads to a prolonged production decline. However, in reality, Chinese manufacturers inform their partners that their break period lasts from three weeks to one month. During the holiday, manufacturers still accept orders from customers, but they will only produce and ship the orders after the holiday, especially for small orders from customers across the border.
- Backlog of orders
Due to the prolonged productivity decline of up to two weeks, a significant backlog of orders is sure to develop as businesses request replenishment of their depleted inventory. It may take some time for order volume to return to normal. Due to the orders that still arrive during the holiday but are not produced immediately, the time after the holiday is the time to ramp up production to make up for the orders. Therefore, partners must also wait for production. Delivery times may also be significantly delayed after the holiday.
- Delayed delivery
Regardless of international trade, most of China's ports close during the CNY holiday. However, Chinese ports are some of the main transportation hubs in Asia. This means that logistics services across the region may face major delays, price increases, or both. You should proactively check with your logistics provider to see how they plan to mitigate the situation.
- Employees take leave
For many Chinese people, LNY symbolizes a new beginning and is a time for change and new opportunities. This can lead to staff shortages at a time of particularly high demand. In the face of difficulties, some businesses may bring in untrained replacement workers to fill vacant positions. This can affect product quality and cause further delays.
2. To avoid risks, work with a logistics company that understands Chinese logistics
At MDCT Logistics, we have experienced professionals who understand the working hours of our partners in China. Businesses will be clearly advised on the order placement schedule to match their business plans. There will also be major holidays for Asians in particular and the world in general in the year, such as Labor Day, Mid-Autumn Festival, National Day, etc. Please contact MDCT to have a reasonable international import plan to avoid unnecessary risks.
If you need to import goods from China through the official channel, please contact MDCT Logistics today at hotline 0865 763 169 for free consultation and quotation. We are committed to providing you with the best, most reputable, and most competitive official import services from China. Let us help you import goods from China easily, quickly, and efficiently.
