Will Chinese New Year Impact Your Shipping Business

Posted & filed under Dry Less-than-Truckload.

On February 5, people around the world will celebrate the Lunar New Year. Families in many Asian countries will gather to celebrate the ringing in of the “Year of the Pig.” As one in five people in the world are Chinese, Chinese New Year is the number one celebrated event across the world. Such a large celebration is bound to influence your business. Learning more about this holiday can assist you in preparing a shipping strategy.

Chinese New Year, also known as CNY, has a week-long celebration and sharing of traditions. In the 1970s, China encountered major economic reform, which caused a high population growth along the cities in coastal regions as people relocated for their careers. Many people moved hundreds of miles away from their rural homes in search of more stable income. During CNY, these densely populated cities will have millions of their residents travel back to their families in rural areas. CNY reflects the largest Human Migration in the world. In 2015, 1,000 tickets per second were purchased 60 days prior to CNY.


Many businesses will shut down for up to 10 days prior to the beginning of CNY to allow for people to travel home to their families. This includes manufacturers and major transportation ports.


Prior to businesses closing for CNY, there is a mad dash for overseas businesses to have their products manufactured and on shipping containers. Often this will cause a ripple effect of influx in capacity, pricing, delays and missed deadlines. CNY travel can potentially disrupt production and shipping for 3-4 weeks of the calendar year. After CNY celebrations, many people make life changes, including acquiring new employment and not returning back to their previous employers. As China is an economic giant in exports, CNY can have impacts felt around the world, especially for manufacturing and retail organizations.

It is important to plan early for possible CNY impacts. As we respect the efforts and contributions these manufacturing countries bring to us, we should take time to celebrate with them and ring in the prosperity of the new year. Kung Hei Fat Choy! Happy New Year!


Source: 21 Things You Didn’t Know About Chinese New Year




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