Certain times of year are very busy for international shipping, particularly for shipments that must travel from or through China. Chinese New Year occurs towards the end of January, with many off work for 7 days, which results in the entire industry being on pause for at least a week. This creates massive disruptions in its own right, with these lengthy delays only heightened by the anticipation and aftermath of the Chinese New Year. We’ve put together a rundown of this yearly occurrence, providing our advice on how to navigate this notoriously stressful time of year.
How the Chinese New Year creates an absent workforce at shipping terminals
- In the countdown to the New Year, terminals are typically overburdened with an excess of shipping containers as companies worldwide struggle to deliver before holiday shutdowns. The resultant lack of space on ships generally causes a spike in freight prices.
- Those who are willing to pay the new, higher prices, are often given shipping priority, allowing their goods to be delivered on time. Everyone else has to contend with a much longer transport time – and, in fact, some loads likely will not ship at all, and end up stuck in holding over the holiday period, with no movement until business starts back up again once the New Year is over.
- Although the Chinese New Year celebration itself only lasts for 7 days, millions of people often travel far afield to visit their families either side of the holiday, which often extends the time away from work to 10-14 days. This mass movement of people is the largest annual migration in the world and particularly affects the trucking industry every year.
- Finally, once the holiday period has ended and employees return to work, they must deal with the substantial backlog that built up before and during the Chinese New Year. Overflowing warehouses create knock-on delays on new incoming shipments, which means that even though winter has ended, the tail-end effects may still be felt.
- The shipping industry can take weeks, and sometimes months, to fully get back to normal after the Chinese New Year.
How to navigate the Chinese New Year when transporting goods
This yearly event has the upside of predictability – you can plan your shipments around it accordingly, to the best of your ability. However, delays are inevitable and we advise placing orders with at least a month to spare either side of the holiday period. If you must place an order in December or January, expect significant delays and higher prices, or seek a new transport route. You may find a shipping route that is longer in distance, but you are less likely to face hold ups at the terminal, and your goods may even end up arriving sooner than if you had shipped via China at that time of year.
Chinese New Year can bring unexpected twists in shipping schedules, but you don’t have to navigate these waters alone. Sign up for our newsletter today and get timely updates, expert insights, and practical tips right in your inbox. Whether it’s adapting to seasonal delays or planning your logistics strategy, we’ve got you covered. Join our community and turn challenges into opportunities.
