Advisory: Plan Ahead for Chinese New Year 2023

JAS China Staff
January 1, 2023
Chinese New Year is quickly approaching. During this time, factories will shut down or slow production, and supply chains can be disrupted. If you ship items to or from China, it is important to plan ahead and be prepared.
Chinese New Year is quickly approaching. During this time, factories will shut down or slow production, and supply chains can be disrupted. If you ship items to or from China, it is important to plan ahead and be prepared.

What is Chinese New Year?

  • Chinese New Year Public Holiday, Mainland China: January 21 – January 27.
  • Chinese New Year Public Holiday, Hong Kong: January 23 – January 25.

During the week of Chinese New Year, factories and businesses will close as the public holiday brings a week off for employees to travel to celebrate the start of a new year with their families. Each year, the consequences of these shutdowns are felt throughout global supply chains.

How will it impact supply chains?

While the holiday officially begins January 21, in the days and weeks preceding the official week of the holiday, production at manufacturing facilities across the area will start to slow as employees take time off. This year it is estimated that approximately 80% of factories will gradually close the week preceding the legal holiday. When production begins to pick back up, factories typically prioritize orders from regular clientele.

The holiday's impact on supply chains extends beyond just manufacturing and production processes. As shippers plan for the changes in factory production, the amount of cargo being shipped will increase in order for business to have ample stock on hand throughout the disruption. Due to this increase in cargo volumes, shippers can anticipate temporary rate increases beginning as early as mid-December. These increases will affect both ocean and air freight.

Shippers should also be aware of potential slowdowns in the border-clearing process. With truckers taking time off and demand increasing in the weeks leading up to the holiday, rate increases and further capacity constraints can be anticipated.

What can I do to minimize the impact of Chinese New Year on my supply chain?

To avoid unnecessary supply chain disruptions and price increases it is recommended to place bookings well in advance. At least four to six weeks before Chinese New Year is ideal.

For further information about the impact on specific regions and ports, please see the attached.

Please do not hesitate to contact your local office or JAS representative for further assistance.

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