About Chinese New Year
Chinese New Year (CNY), or the Spring Festival, is a traditional holiday that marks the beginning of the new year on the Chinese lunar calendar. Unlike western holidays such as Thanksgiving and Christmas, CNY is not limited to one day. Officially, the holiday lasts one week, starting on Chinese New Year’s Eve. Realistically, however, the celebrations will be observed for up to a month.
Because Chinese New Year is structured around solar events, the exact dates vary each year. In 2021, the Lunar New Year begins on February 12.
Why it Affects Global Logistics
Essentially, all logistical activities in China are halted for about a month for the observation of CNY. In the days and weeks prior to the Spring Festival, workers migrate from the cities to reconnect with their families in rural areas. Because China serves as the global leader in exports, one might refer to this lengthy exodus as a “Supply Chain Power Outage.”
It’s also worth noting that international employees who observe the Lunar New Year may be inaccessible for the duration of the holiday. Once the festivities have begun, it’s entirely possible that you won’t be able to reach them for up to a month!
For the curious mind, 2021 is the Year of the Metal Ox on the Chinese lunar calendar. In Chinese culture, oxen represent characteristics such as strength and determination.
How Can You Prepare?
Ideally, your preparations will take place well before the celebration begins. Building up inventory ahead of time is the biggest way you can protect your supply chain from trouble.
Communication is also a key to success. If you have supply chain partners that will be taking time off for CNY, reach out to them to understand what kind of schedule they’ll be on next month so that you can arrange your operations accordingly.
Chinese New Year is a fascinating occurrence with deep roots in Asian culture. For those of us outside of China, it can cause serious supply chain problems if not planned for properly.
Has CNY caught you by surprise and created logistical headaches? If so, give us a call! At Easley, we offer unique and agile transportation solutions because of our ability to seamlessly combine multiple service lines to meet your specific needs. Whether you need drayage, warehousing, local cartage, transloading, or all of the above, we’d love the opportunity to serve you!
Resources:
Forbes: The Impact of Chinese New Year On The Global Supply Chain