Be prepared for Year of the Monkey

Companies manufacturing in China must rush their goods out in advance of the holiday

By ·

The advent of the Lunar New Year or the Spring Festival is the most important of the traditional Chinese holidays, but can also be disruptive to U.S. supply chains.

The year of the monkey, will be is ushered in on Sunday, February 7, and will not end until February 13, 2016.

Shippers sourcing from China and elsewhere in Asia should be aware that government, construction and factories will be virtually shut down during these weeks, while ports and customs usually operate with a skeleton staff focusing on perishable priority items.

“Many manufacturers treat the holiday as an annual break and close down for two weeks or longer,” explains Diana Maure of Lilly and Associates.

She adds that while commerce virtually comes to a standstill in China during those two weeks, companies manufacturing in China must rush their goods out in advance of the holiday, usually at higher quantities to prepare for the lost work week(s):

“That rush, both before and after the Chinese New year, puts an increased stress on the supply chain, causing congestion and capacity issues for shippers. Along with the rush, it has become the norm for ocean carriers to omit one to two sailings a week during the most popular deadline date for production. These omissions, creating more demand, create further delays at the port and for shippers who need to secure space on these carriers.”

 


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

China · Manufacturing · Supply Chain · All Topics
Latest Whitepaper
Improving Packaging: The Cost of Shipping Air is Going Up
Retailers and manufacturers that insist on using inefficient and sloppy packaging methods—oversized boxes, inefficient packaging, poorly constructed palletized contents—are paying for their mistakes in sharply higher freight rates. Pitt Ohio White Paper, Logistics White Paper, Dimensional Packaging
Download Today!
From the July 2016 Issue
While it’s currently a shippers market, the authors of this year’s report contend that we’ve entered a “period of transition” that will usher in a realignment of capacity, lower inventories, economic growth and “moderately higher” rates. It’s time to tighten the ties that bind.
2016 State of Logistics: Third-party logistics
2016 State of Logistics: Ocean freight
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....

Top 25 ports: West Coast continues to dominate
The Panama Canal expansion is set for late June and may soon be attracting more inbound vessel calls...
Port of Oakland launches smart phone apps for harbor truckers
Innovation uses Bluetooth, GPS to measure how long drivers wait for cargo