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]

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Article Topics

China · Manufacturing · Supply Chain · All Topics
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