5 Tips for Keeping Orders on Track During Chinese New Year 

Ordering and sourcing from China can be a real headache, even on a good day. But throw in busy periods and holidays, and things can quickly spiral out of control. 

One of the biggest challenges comes during Chinese New Year (CNY), which always falls between Jan. 21 and Feb. 20, depending on the lunar calendar. This holiday is China’s longest and most important, leading to complete shutdowns of manufacturing operations for two to four weeks. 

As a result, Chinese factories often become inundated with last-minute orders as businesses rush to stock up on inventory before the holiday. In January-February 2024, China’s industrial production was reported to grow by 7% year on year, reflecting the heightened activity before the CNY shutdown.  

With all this activity, you’re more likely than usual to face issues with suppliers and late orders. If you don’t prepare and maintain communication with your suppliers, you risk major delays that could disrupt your operations. 

But what should that “plan” consist of? Here’s what you need to know: 

How the Chinese New Year Affects Your Shipping Plans 

First, consider what’s happening on the ground: 

  • Factory Closures: Factories often shut down for one to four weeks around CNY. Yet, many start slowing down production well before the holiday. 
  • Production Backlog: As CNY approaches, companies scramble to place large orders to avoid the holiday rush. Factories become extremely busy, and as a result, they tend to prioritise their biggest clients. 
  • Increased Freight Demand: This surge in orders creates a spike in demand for freight services as businesses scramble to ship goods before the holiday. The result? Higher shipping costs. Historically, freight rates can rise by 25% to 30% in the months leading up to CNY. Then there’s also limited cargo space availability. If your goods aren’t at the port on shipping day, you’ll likely need to wait for space until after the holiday. 
  • Post-Holiday Backlogs: After CNY, factories take time to ramp up production as workers return, causing further delays. After CNY, factories may operate at limited capacity initially due to returning workers not being at full strength or not returning at all. 

So, here’s a key question: Are you one of your factory’s biggest clients? If not, your orders might slip down the priority list during this busy season. 

If your orders are so big that you’ve practically sponsored the factory owner’s yacht, you can rest assured they’ll bend over backward to get your order shipped on time! 

But if you’re not quite in that league, you’ll need a plan to ensure factories prioritise your purchase orders and ship on time. 

5 Tips for Timely Shipments 

1. Plan Ahead 

  • Order Early: Place orders well in advance — ideally by late November or early December — to secure production slots before factories start winding down for the holiday. 
  • Know your lead times: Issuing Purchase Orders in November is all very well if you have a 15-30 day lead time, but if your product requires 60 days or more then you will be cutting it tight. 
  • Communicate Holiday Schedules: Discuss your suppliers’ holiday plans and confirm when they will close and resume operations. The clearer you are, the less likely things will go wrong! 

2. Stay in Touch 

Paying the deposit to secure your order and then going silent until the ready date almost guarantees disappointment. 

Remember, your suppliers are likely juggling multiple clients, many of whom may be sending representatives to prioritize their orders. If those clients have bigger orders and stronger financial ties to the factory, your order could easily slip down the priority list. 

The key is to stay at the forefront of your supplier’s mind. And to do that, regular communication is essential. 

We suggest setting up a schedule to keep tabs on production progress, potential delays, and any changes to your order. 

You don’t need to check in every single day, but here’s a timeline we recommend for checking on purchase orders. You can handle each step in person (more on that shortly) or remotely, but maintaining a steady rhythm of reminders is key: 

  • After Deposit: Confirm the expected ready date for your goods. 
  • One Week Later: Check for any missing information or changes to the order. 
  • Seven Days Before Ready Date: Request updates on any potential delays. 
  • Two Days Before Ready Date: Verify inspection dates and whether a second inspection is necessary. 
  • On Ready Date: Ensure the goods are loaded as planned and ask for loading photos if possible. 

3. A Visit Beats a Video Call

You can manage all your communication with the factory remotely. However, in our experience, a mix of emails, calls, and in-person visits works best to keep everything on track. 

Having someone visit the factory in person is key — especially if things go sideways. 

Let’s face it: letting someone down over text is easier than doing it face-to-face. And guess what? The same goes for factories! 

If it’s a choice between letting down a client 10,000 kilometres away over email versus a client standing right on the production floor, you can bet the person in the room is getting the better deal! 

Having somebody on site also means: 

  • Quick Issue Resolution: If problems pop up, you can tackle them right away. 
  • No More Misunderstandings: You’ll be less likely to hear, “I thought you meant next week!” when you really needed your order today. 

Plus, many Chinese suppliers might not feel comfortable expressing themselves in English. They often hesitate to share their thoughts with clients. Therefore, having a local representative who speaks their language can make all the difference. They bridge the communication gap and ensure your needs are crystal clear. 

So, send your own team member through services like The China Desk or hire a verified company rep. It’s worth it for peace of mind! 

4. Prepare for Shipping Early 

In addition to maintaining regular comms with the factory, book freight space at least 4-6 weeks before CNY. As demand peaks, securing shipping early can save you from last-minute headaches. If timing is critical, consider air freight despite the higher costs — it may be worth it for timely delivery. 

5. Keep Inventory Buffers 

Stock up on essential items before CNY. Having extra inventory can cushion against potential disruptions during the holiday period. 

Need Support? 

Managing shipments during Chinese New Year doesn’t have to be overwhelming. On-the-ground support is essential for businesses sourcing from China, and that’s what we specialize in! We can hire representatives on your behalf or send our team to check on your suppliers and ensure everything runs smoothly. 

By planning ahead, maintaining regular communication with suppliers, considering factory visits, booking freight early, and keeping inventory buffers, you can ensure your orders arrive on time. 

Get in touch to find out how we can help you stay proactive and keep your orders on track during Chinese New Year!

Benjamin King

CEO, Kinyu

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