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While workers in China have a well-earned reputation for hard work and productivity, the traditional celebration of Chinese New Year halts manufacturing and production for a significant period of time. Importers in the United States who source goods from China must be aware of and prepared for this annual event.
Key Takeaways
Having a dedicated plan to navigate this holiday season is a must. Read on to learn more about CNY and what importers can do to prepare.
At the end of January or beginning of February, the nation of China starts a week of festivities celebrating Chinese New Year. Based on the Chinese lunisolar calendar, CNY is also known as the Lunar New Year or Spring Festival.
During this holiday season, warehouses can be closed for two weeks to a month. This follows the CYE tradition of Chunyun, which literally translates to “spring transportation”. Some experts have referred to this as the largest human migration of any given year.
During Chunyun, it’s common for factory workers to travel inland to their native towns and villages in order to see family they don’t get to see for the rest of the year. Obviously, this means production on the entire spectrum of goods within the country is brought to a standstill.
Given China’s prevalence in international trade, importers need to plan around this annual disruption in production. The first step is knowing when the holiday falls.
Related: Import Costs From China
The actual start of Chinese New Year is different every single year. In 2024, it began on February 10. Next year, it will fall earlier. This is because the holiday doesn’t start on a specific date, but rather on the first new moon of a given year.
I could go on at length about Gregorian calendars vs. lunar calendars, but that’s not what you came here for. Instead, I’ve simply listed the starting dates of the holiday for the next 10 years in the table below.
Now that you know what dates to prepare for, the next step is adapting your importing strategy to minimize the holiday’s impact on your business.
Related: Importing From China to the US.
Our Team of Experts Can Help You Throughout the Entire Import Process.
As an importer, timing is the most crucial element of preparing for Chinese New Year. You’ll need to be ready to order earlier and prepared to store more merchandise than usual for a few weeks.
In October or the very beginning of November at the latest, you should contact your supplier(s) to nail down what their plans are during this holiday period. This won’t affect just Chinese products, but potentially products made in any other country that uses Chinese materials to craft its merchandise.
In fact, countries such as Singapore, Vietnam, and Thailand celebrate their own version of this holiday. Therefore, goods or materials coming from these countries could also be delayed.
Once you know their plans, you’ll need to calculate demand for your goods during the period of time during which shipping times and rates are affected.
Simply put, if you know in October that shipping will be a month behind starting in December and lasting into March, it makes sense to have two and a half to three months of product on hand by January to fulfill your customers’ needs.
Under the best circumstances, Chinese factories still need a lead time of four to six weeks to process and fulfill orders. Therefore, the sooner you can order, the better.
You can expect ocean freight rates from China to start increasing as early as December in anticipation of CNY. To put these increases into perspective, rates jumped from approximately $1500 per 40-foot container in late December 2023 to over $3000 by early January.
For importers, this drives home the importance of early preparation for the holiday. The sooner you can get your orders in, the less likely you are to experience delays and increased freight rates.
Now that you know what to expect during Chinese New Year, get a head start on your preparations by partnering with us to address all your importing needs.
The team at USA Customs Clearance has expertise in all facets of clearing customs. During one of our of one-on-one personalized consulting sessions with a licensed customs broker, we can answer any of your customs-related queries in real-time. One of these sessions can help you avoid costly mistakes later down the road.
Our full range of services also includes:
Ready to get this party started? Give us a call at (855) 912-0406 or submit a contact form online today!
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