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How to prepare for Chinese New Year

China’s busiest time of year is fast approaching. Chinese New Year (CNY) is celebrated nationwide meaning all businesses around the country will close, including all factories. During this time all workers will travel across the country to return to their families and celebrate the New Year, with all manufacturing shutting down for the duration.

In 2018, the official dates for Chinese New Year are from February 15 to 21. However, most factories will stop operations until March 2.

One to two weeks before CNY, factories will speed up their production causing a surge of freight. During CNY they will close down completely. Production will resume after and be back to normal one to two weeks after the holidays.

There are two celebrations that occur during this time, the official holiday and the traditional holiday. It is due to this that some factories will finish earlier than others and take longer vacations. Some suppliers are off for over a month.

How CNY can affect your business

  • Longer production and quotation times: Production time will be delayed and quotation requests will be processed slower.
  • Decreased staff: Many factory workers enjoy their holidays so much that they decide not to return to work, this high turnover means that previously estimated production times may need to be extended.
  • Production queues: The later orders are placed the further back in the production queue you are placed. With 1 month worth of orders backed up, factories will process orders from their preferred partners first.

How you can prepare

  • Build up sufficient stock, considering a period of up to four weeks after Chinese New Year.
  • Provide a forecast of your expected cargo to your DACHSER representative.
  • Inform us about your priority shipments, in case there are only very limited spaces.
  • Reserve space on passenger flights for shipments which cannot be delayed. The rates are slightly higher but this measure will keep your supply chain running.

Chinese New Year holiday schedule DACHSER APAC

  • Mainland China – February 15-21
  • Hong Kong – February 16-19
  • Korea – February 15-16
  • Singapore – February 16-17
  • Indonesia – February 16
  • Taiwan – February 15-20
  • Vietnam – February 14-20
  • Malaysia – February 16-17

Please reach out to your local DACHSER contact if you have any questions.

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