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How Chinese New Year Will Affect Your Business

This week, we will discuss the upcoming Chinese New Year and how it will affect your business. 

Casey Carroll
12 Nov

In our blog “Why China’s Shipping Prices Have Risen,” we talked about why China’s cost of shipping has gone up and what it means for your business. 


In recent months, the supply chain has not gotten any better. Delays and shortages will continue to affect your business, especially since Chinese New Year 2022 is close. You may not have given this holiday much thought, but learning about it is now essential for your business.


This week, as an update, we will discuss the upcoming Chinese New Year and how it will affect your business. 


Chinese New Year will take place February 1, 2022 and means there will be a big rush for container shipping. This holiday celebrates the end of winter and the beginning of spring. This holiday lasts a week and means that many businesses and industries will be closed--possibly even weeks before. This will make this time period busy and challenging.


Now, we will get into the specifics of how your business could be affected. 


First, most of the factories and manufacturers in China close during the Chinese New Year. The factories and manufacturers will try to complete orders weeks before the holiday and many of their workers will begin their travels early to be with their families. What does this mean? Manufacturers will not be able to provide quotations or take on new orders in the weeks leading up to Chinese New Year.


Additionally, after the New Year, it can take four to six weeks for these businesses to return to their normal production levels. It takes time for factories to return to full capacity. You should assume that it will take a month for everything to be back up and running. 


Another factor to consider is that the quality of products usually decreases before or after the Chinese New Year. This is due to workers quitting and finding other work during this time. They are replaced quickly and the new staff is untrained, so making the quality of product you are used to might be delayed. The workers need time to train and learn how to make the best products for your business. 


Lastly, remember that the supply chain has been affected by the COVID-19 pandemic. The same issues discussed in our “Why China’s Shipping Prices Have Risen” persist. Demand will continue to increase, backing up the production and shipping of products. You need to take this into consideration.


What do you need to do? Simply, you need to prepare accordingly. You and your business need to prepare your cargo ahead of time so that it will arrive when you need it. 


We hope this blog was informative and helpful!

 

Until next time, let us know if you have any questions or comments below!


Casey Carroll
12 Nov

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