As Christmas preparations are in full swing, it's easy to overlook another key event that could disrupt your supply chain: Chinese New Year 2025 falls on 29th January 2025, this annual celebration will see factories across China close for over two weeks, leading to limited shipping and production capacity. Planning ahead is essential to avoid disruptions and keep your supply chain moving.
To prevent costly delays and low stock levels, here's what you need to know:
Why You Need to Plan Now
- Factory Closures: Chinese factories typically shut down 1 week before the New Year and take another week or more to resume production. Some factories don't return to normal production levels until after the Lantern Festival which is on 12th February.
- Surging Demand: Increased freight demand ahead of the shutdown can lead to limited shipping space, rising costs and potential delays.
- Production Delays Post-Holiday: Even after factories reopen, it takes time for operations to return to normal due to backlogs with some factories facing labour shortages.
Steps to Avoid Disruptions
- Forecast and Place Orders Early: Collaborate with suppliers as soon as possible to determine stock requirements for Q1 2025, ensuring production and shipments before the holiday shutdown.
- Book Shipping Space in Advance: Shipping capacity tightens quickly, so reserve space as early as possible to avoid the surge in demand, delays or premium charges.
- Communicate with Suppliers: Maintain clear communication and ask for transparent timelines on production schedules and shipping cut-offs.
- Consider Alternative Routes: Explore air or rail freight if sea freight options are constrained.
How Powercargo Can Help
At Powercargo, we offer comprehensive solutions to keep your supply chain running smoothly during this critical period:
- Pre-Chinese New Year Freight: Leverage our established relationships with carriers to secure space ahead of the rush.
- Powercargo are also able to progress chase your purchase orders and proactively advise you of any potential delays.
- Alternative Transport Options: Utilise our multimodal transport services, including air, sea, road, rail, and courier to adapt to your specific needs.
- Customs Clearance Support: Avoid delays at ports with our streamlined customs clearance solutions.
- Post-Holiday Quality Assurance: Once production lines reopen, we offer pre shipment product inspections to ensure your goods maintain the highest quality, even if new staff or processes have been introduced.
Act early to stay ahead of the Chinese New Year rush. Contact Powercargo today to secure shipping space and keep your supply chain running smoothly.
