Chinese New Year Preparation 2022

Year of the Tiger 2022

15th December 2021

4 Planning Tips for Chinese New Year 2022

 

With Christmas approaching fast, now is an excellent time to start thinking about production and freight forwarding planning for the Chinese New Year holiday season. Chinese New Year, otherwise known as Lunar New Year or Spring Festival, is one of the world's most prominent and celebrated festivals and will welcome the birth zodiac of The Tiger.

 

In 2022, the official Chinese New Year Festival runs from approximately 31 January to 15 February. Factories can shut down for sometimes up to four or five weeks, allowing workers time to travel back home to spend the holiday with their families. We share four tips to support you and your business in preparation in this post.

 

Tip 1: Confirm shutdown dates with your suppliers

While the actual holiday does not begin till approximately 31 January, it is common for factories to close 10 days in advance to allow workers to travel home. Truck drivers also finish up early, so they have time to travel to be with their families. After Chinese New Year, time also needs to be factored in for workers and truck drivers to travel back to work from their homes. In some cases, workers also use the Chinese New Year as an opportunity to switch jobs to either remain closer to home or for other reasons. With this in mind, an extended period may be needed by some factories while they recruit new workers, train and ramp up production.

 

To be prepared, speak with your suppliers to confirm their shutdown dates, including before and after the Chinese New Year.

 

Tip 2: Forecast and schedule in production

Ensure your orders are scheduled for production well in advance so you can try and avoid shipping in the days leading up to the start of the holiday. If not done already, develop and finalise your forecast and order from your suppliers as soon as possible. Factories in China are extra busy in the month before the break, which potentially creates a backlog and delays with production.

 

By ordering well in advance of this period, you are more likely to keep your supply chain moving and avoid disappointment.

 

Don't forget to send a copy of your orders to your client services specialist at AXIMA. This will ensure that your orders and required dates are registered and followed up with your suppliers, creating clear visibility of the booking milestones to your business.

 

Tip 3: Keep a focus on quality control

In the lead up to the holiday season, factories are producing at high speed to try and meet increased demand. The focus on quality control can fall by the wayside with the increase in orders. This drop in quality means you could receive inferior quality goods, which add to your costs. By being aware of this and working with your suppliers and your quality control team in advance, you will reduce the risk of delays due to quality issues.  

 

Tip 4: Book your freight forwarding in early

Have your suppliers book your shipments several weeks in advance, especially for sailings close to the Chinese New Year. If possible, try and not to ship in the 10 days before the beginning of the holiday, though we understand that this can be unavoidable. Shipping line space is limited during this time of the year and is usually priced at a premium. Trucking from factories to the seaports and airports in China can also be a challenge leading up to the Chinese New Year. The farther in advance you can book your sea freight and airfreight shipments, the more likely you are to avoid disappointment. We strongly recommend booking shipments now to secure space to meet your required dates.

 

AXIMA, a Yang Kee Company, provides supply chain services, specialised expertise and a high level of caring personalised service to companies in Australia, the United States and Asia. We have the operational capacity to maximise value and efficiency, delivering our clients with supply chain success.

 

To learn more about Chinese New Year planning, speak to one of our team members in Australia, China or the US. If you are not currently an AXIMA client, we welcome the opportunity to meet with you to discuss your freight forwardingborder clearance and 3PL logistics needs and how we can help your business grow.

 

Contact us at marketingteam@axima.com.au or call us on 03 8368 5300.