How can Chinese New Year affect your supply chain?
China is considered one of the main drivers of the global economy, and one of the most important trading partners of many Western countries. The Asian country contributes more than 30% of the world's GDP, exceeding the combined contribution of the United States, Japan and the Eurozone. It is also the world's largest exporter.
Given these figures, it is not surprising that when China catches a cold, it spreads it to the rest of the world. And if the country comes to a standstill, as it does on Chinese New Year, the global supply chain is significantly affected, especially those companies that import products produced in China.
During the week-long Chinese New Year vacation, government, construction and factories stop all activities. In addition, ports and customs operate with minimal staff, with the only priority being perishable goods.
In addition, it must be taken into account that, in the weeks prior to Chinese New Year, and in order to compensate for the economic standstill of this week, goods are produced in larger quantities than usual, which congests the supply chain and causes problems for shippers.
This year, moreover, the covid-19 situation is not the most suitable. Three years after the onset of the coronavirus, the world is once again looking at the Asian giant with concern, and restrictions are already beginning to be applied to Chinese travellers for fear of a new variant developing. Applying new restrictions on the mobility of individuals and goods will be yet another stumbling block.
In short, even if you think that Chinese New Year does not affect you, your supply chain may suffer its consequences, albeit indirectly. It is therefore important that you take the appropriate measures as soon as possible to anticipate possible logistical problems.
