As we near the National Holidays, which will take place from February 10th until February 17th, the world will experience the greatest human migration. During Chunyun 春运, the Chinese New Year travel rush, over 9 billion trips are expected, leading to a significant pause in Asian supply chain and logistics operations as workers journey home to reunite with loved ones.
Anticipating Logistics Challenges, Factory Closure & Workforce Shift
As this festive season approaches, anticipate heightened freight costs, slower transit times, and delays in shipment movements, while customs prioritize perishable goods over other types.
In regard to your supply chain at large, factories wind down starting mid-January, and production pauses until the holidays end on February 17th. You can expect a total return to business as usual two weeks after the end of the holidays. It is however estimated that about 30% of the workers do not return to work (as it is traditionally the chosen period to switch jobs). This can have repercussions for a period of up to 4 weeks after CNY.
Impact Analysis: How Chinese New Year 2024 Affects Sea, Air, and Road Freight
🚢Sea Freight
Numerous carriers have announced blank sailing schedules, resulting in a 10% reduction in average capacity. Expect impacts primarily on the China-Europe and Mediterranean trade routes throughout February.
✈️Air Freight
While there's a surge in air freight inquiries due to Red Sea events, actual exports are lagging, likely due to higher costs compared to sea and rail alternatives. Specific routes, such as Shanghai to Singapore and Dubai, operate at near-full capacity, driving prices up. Despite expectations for a pre-CNY peak, current volumes are lower than anticipated, potentially leading to flight cancellations.
🚚Road Freight
Around CNY, fewer drivers are available, particularly during Chunyun, making container arrangements and domestic trucking more challenging. Courier services may also experience delays, with a return to normalcy expected approximately two weeks post-CNY.
Mitigating CNY Disruptions
To mitigate CNY's impact on your business, proactive planning, clear communication with production and logistics partners, prioritizing 40ft containers, and diversifying shipping modes are recommended strategies for ensuring smooth operations.
As your trusted logistics partner, ASI Logistics is here to ensure your shipments navigate smoothly through the celebrations of Chinese New Year 2024. With over 16 years of expertise in logistics and freight forwarding from, to, and within Asia, we are committed to orchestrating your shipments with precision and care, ensuring minimal disruptions to your operations.
As we usher in the Year of the Dragon, may your logistics journey be filled with prosperity and seamless transitions. Happy Chinese New Year from all of us at ASI Logistics!
ASI Logistics, strong with 15 years of expertise, provides you with the most adapted logistic solution to fit your needs and ensure you enjoy the benefits of smooth operations.
Thanks to our seven offices, including six conveniently located on China's east coast logistic hubs (Shanghai, Qingdao, Xiamen, Ningbo, and Hong Kong), its two branches in Ho Chi Minh City, Vietnam, and Phnom Penh, Cambodia, and its worldwide network of logistic experts, ASI Logistics accompanies you at every step of your product's journey from, to and within Asia.
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