Millions of people across the globe are preparing for Chinese New Year, the centuries-old celebration that marks the beginning of the lunar calendar in many Asian cultures. In 2023, the Chinese New Year falls on Jan. 22. This joyful festival involves organized parades, parties, fireworks, and other public activities. The holiday significantly impacts the shipping and supply chain industries due to the surge in international travel, consumer spending, and gift-giving. These factors create operational demands on logistics companies as they try to keep up with customer orders and on-time delivery. In China and many east Asian countries, major factories usually close during the weeklong celebration, leading to a reduction in overall capacity. Therefore, companies must plan ahead for the Chinese New Year to minimize supply chain disruptions. This article will take a closer look at the effects of the Chinese New Year on the airfreight market and offers guidance on what companies should look for when choosing a service provider that specializes in expedited airfreight.
An Overview of the Airfreight Market
The airfreight market is exceedingly busy during the Chinese New Year as people travel to join loved ones for the festivities. This increased travel places considerable constraints on airlines and airports already operating at reduced capacity due to the lingering effects of the global pandemic. In anticipation of the surge in consumer travel and retail spending, ocean shippers and airfreight companies alike generally raise their rates — well before the holiday, too, since companies often order additional consumer goods to ensure store shelves remain well stocked. Air shippers experiencing tightened capacity also increase rates due to overall demand for their services.
How does the Chinese New Year Affect Air Supply Chains?
As Asian factories temporarily close to allow workers to celebrate the holiday, global supply chains often experience heavy delays. This lag period starts a few weeks before Chinese New Year and lingers a few weeks after the holiday. These delays and tightened capacity in the ocean and airfreight markets often create bottlenecks in global supply chains. Air shippers generally experience delays at clearance houses as most facilities operate with limited staff and hours of availability. These constraints often cause additional delays in air shipping. During Chinese New Year, air shippers generally have limited shipping options available. This is one crucial factor for why it’s imperative to partner with a logistics company that features expedited airfreight services.
Strategies to Manage your Supply Chain for Chinese New Year
Making sure your company can navigate the global disruptions caused by the Chinese New Year requires sound planning. The holiday affects international shippers, carrier partners, forwarders, brokers, and air shippers. A key strategy is to lock down capacity well in advance. Make sure to schedule your shipping orders well before the celebration starts. In other words, plan your work and work your plan.
Find Dedicated Solutions
One of the best strategies for preparing for the Chinese New Year is to establish a business relationship with a trusted provider who can offer access to a strong network of carriers you can use to ensure capacity when it is needed most. Companies like Carrier911 offer customers real-time visibility on all shipments, ensuring you are always aware of the location of your products.
Work with an Airfreight Forwarder that has Multiple Shipping Locations
Look for an air forwarder that specializes in working from multiple airfreight facilities. Having the option available to provide solutions to customers is a way to help customers navigate around potential bottlenecks in their supply chain. Look for an air forwarder that offers an array of solutions and services, such as warehousing, drayage, expediting shipping, and inland transport.
Partner with Carrier 911 for all your Airfreight Needs
When seasonal surges like the Chinese New Year affect the logistics industry, it’s important to partner with a service provider with industry experience to help navigate operations and minimize potential disruptions. Thousands of customers daily depend on Carrier 911 to manage their unique operational requirements. Carrier 911 provides dedicated freight solutions to ensure extra capacity year-round. Whether by air, ocean, or truck, Carrier 911 will get it there on time and in full. Don’t be left stranded alone next Chinese New Year! Connect with an expert at Carrier 911 today!