In 2021, the effects of the Chinese New Year will significantly affect global logistics.
First, the pandemic dramatically slowed down logistics operations in 2020. Now, Chinese New Year will bring an almost complete stop in logistics for about a month. Learn more about this phenomenon and how to mitigate its effects.
How Does Chinese New Year Affect Logistics?
Chinese New Year will bring with it a halt in activities in China, Taiwan, Hong Kong, and other countries where it’s celebrated. In general, it’s expected that the holiday will last between two weeks to a month. On top of that, due to the recession, many factories could not resume operations after the official holiday.
What Is Chinese New Year?
In essence, Chinese New Year is the most common name for the Lunar New Year. This celebration takes place mostly in Asia-Pacific, and it doesn’t have a fixed date. However, the official holiday dates usually fall between the last weeks of January and mid-February. Nevertheless, this isn’t a short celebration. Chinese New Year usually implies two weeks off of work.
In China, this resting period is vital because:
- They have very few days off.
- Most workers travel home to the countryside.
- Travel within China tends to imply long journeys.
- This holiday tends to be the only time people can visit their family.
The Chinese economy relies on manufacturing. A significant percentage of laborers leaves the cities on different dates. Then, work activities resume gradually because the holiday also ends differently for everyone.
How To Prepare Logistic Activities For Chinese New Year?
First, understand that this isn’t a new situation. In fact, there already are a series of strategies and anecdotes about how to navigate this situation. In Looper, our team of experts can help you solve any logistics issue caused by the Chinese New Year.
However, if you want to take care of things on your own, these tips can help you:
- Submit your orders with anticipation.
- Your supplier might not resume activities.
- Factories tend to file for bankruptcy during these dates.
- Look for alternative suppliers.
- Activities stop in many countries, not only China.
- Countries like Thailand or Indonesia also cease most of their work activities.
- It is expected that activities will take longer to resume in 2021.
- The global pandemic gathered a particular set of unfavorable conditions.
Also, this year, there’s less uniformity on when the holiday starts and ends. Each company assigns their days off.
By following the previous advice, you can keep your supply chain and capital.
As it was mentioned, 2021 might be more challenging for logistics. Especially because activities will take longer to resume after the holidays. This is mostly because of:
- Massive travel and migration between the countryside and the city.
- The government requires at least seven days of quarantine for travelers.
- Most of the Chinese working force will spend around 14 days in self-isolation.
- It is expected that thousands of factories will file for bankruptcy.
The pandemic gave a critical hit to the global economy, and recovery will take longer than previous crises. That’s why it’s essential to have the support of an expert in logistics like Looper. We take care of your logistics all the way so that you can focus on other vital tasks for your company.
Our team has you covered!
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