1. What is Chinese New Year?

The Chinese New Year, or Spring Festival as it’s been called since the 20th century, remains the most important social and economic holiday in China. It’s the Christmas or Ramadan or Diwali of China only on a bigger bigger scale. The date is decided based on the lunar calendar , So the exact date varies each year but usually falls between mid-Jan to end of Feb. Around 2.8 billion trips make over the Chinese New Year, making it the world’s largest-scale annual immigration.

2. How Long does it lasts for?

The date is decided based on the lunar calendar, so the exact date varies each year but usually falls between mid-Jan to end of Feb.  For year 2020, Spring Festival falls on 25th of Jan. Although Chinese government officially allows one week off, it’s common for factories and businesses to close several days/two weeks before and after the New Year to give staff time to travel to their families. For year 2020, the official days off is from 24 to 30 Jan., 2020.  Heneng Technology, a leading turn-key PCB/PCBA solution provider, will be closed from 18th of Jan. to 3rd of Feb. Most of Business and factories will be closed from 17th of Jan. to 9th of Feb. It’s not rare to see factories close for 4 – 6 weeks.

3. How is it Affecting my business?

It’s radio silence from the entire country including suppliers, agents, and partners, which has a huge impact on global supply chains originating in China. This is why it’s so important to plan ahead.

During this time, the government, construction, and factories shut down, while ports and customs usually operate with minimal staff focusing on perishable priority items. Many manufacturers treat the holiday as an annual break and even close down for two weeks or longer. As a result, many companies manufacturing in China rush their goods out in advance of the holiday, usually at higher quantities to prepare for the lost working week(s). That rush, both before and after the Chinese New Year, puts an increased stress on the supply chain, causing congestion and capacity issues for shippers. It also means higher freight rates. In fact, some estimates have rates rising as much 25%, which is why it’s prudent to lock in rates beforehand.

After the holiday, as many as 30% of their work force do not come back, which is the biggest Challenge facing Suppliers. Why they are not coming back? Becasue most of them are migrant workers, far away from home. They may find opportunities in their hometown after talking to their relatives and friends during Spring Festival.

4. How to avoid Issues?

Before and After CNY , be aware that the production line is slowing dramatically , severe delays and quality issues arises & shipping transportation becomes expensive .

So the solution would be:

Plan Ahead: Collect the official and civil holiday arrangement from your suppliers and set them on your calendar.

Order Ahead: Place your oder in November to receive your order by the end of December or the beginning of Jan depends on your industry, which is right before the Chinese New Year

If you don’t plan ahead or order ahead then Be Patient, and take on a vocation, like the Chinese do. Or, waiting for your products to arrive by the end of Feb. or beginning of March.