The Culture and the Chinese Holiday
Each year, millions of workers in China leave their jobs to travel home and celebrate the Chinese New Year Holiday, also known as the Spring Festival. This event not only halts factories and ports in China but also affects supply chains worldwide, especially in countries like Chile that rely on Chinese imports. If you have a business that imports from China, this article is for you.
What is Chinese New Year, and why does it impact international trade?
Chinese New Year, which begins on January 29, 2025, is China’s most important holiday and officially lasts 15 days. However, its impact on international logistics can extend from early December to late February. During this period:
- Factories and businesses completely shut down: Workers typically take two to three weeks off.
- Ports and transportation collapse: High demand before the holiday creates shipping delays.
- Slow resumption: After the holiday, many companies take weeks to return to full operation.
China is the world’s largest exporter and hosts some of the most important global ports, such as Shanghai and Shenzhen. This means that any disruption in its activities directly impacts international supply chains, including imports to Chile.
How does it affect imports to Chile?
If you import products from China, Chinese New Year can cause:
- Delivery delays: Orders placed late may be queued and not shipped until after the holiday.
- Increased logistics costs: Freight rates for both sea and air shipments often rise due to high demand before the holiday.
- Congestion at ports and warehouses: In the days leading up to the shutdown, ports and warehouses become saturated, causing further delays.
- Potential stockouts: Without proper planning, you might run out of inventory in January and February.
What to do to avoid problems with your imports
Here’s a practical plan to ensure your imports are not affected:
1. Plan ahead
- Place your orders before mid-December to ensure they are manufactured and shipped on time.
- Ask your suppliers if they have inventory available for immediate delivery.
2. Secure your stock
- Analyze your inventory levels and purchase additional products to cover January, February, and part of March.
- Prioritize high-demand or critical products for your business.
3. Maintain constant communication
- Confirm closure and reopening dates with your suppliers.
- Consult with your freight forwarder about alternative routes and estimated transit times.
4. Consider air freight
- For urgent products, consider air shipments, even if they are more expensive. This can be crucial to avoid stockouts.
5. Use technological solutions
- Platforms like ComexPoint allow you to compare rates in real-time.
- If you have access to logistics software, use tracking and planning tools to anticipate delays.
6. Adjust customer expectations
- Inform them about potential delays and set realistic delivery times to avoid complaints.
Specific tips for Chilean importers during the Chinese holiday
- Coordinate with your local suppliers: Ensure they deliver consolidated loads (LCL) before mid-January to avoid congestion at consolidation warehouses.
- Check freight rates weekly: Prices can vary during peak season. Adjust your budget accordingly.
- Evaluate alternative routes: If major Chinese ports are congested, ask about less crowded options in southern China, such as Xiamen or Ningbo.
Post-Holiday Preparation: What to do when everything returns to normal
- Monitor your orders: Once factories reopen, confirm the production status and shipping times with your suppliers.
- Be flexible with timelines: The first weeks after the holiday are often chaotic; adjust your schedules based on logistical realities.
- Evaluate your performance: Analyze which strategies worked well and what can be improved for the next Chinese New Year.
Plan today to avoid problems tomorrow!
Chinese New Year is a logistical challenge, but with proper planning and the use of strategic tools, you can minimize its impact on your imports to Chile. Remember, the key is to anticipate delays and communicate proactively with your business partners.
Prepare now to ensure the success of your supply chain during this season!
