UPDATE: Liberty Baugher talks Chinese New Year closures in January #SunsetSays

An update from Sunset’s International Director Liberty Baugher regarding Chinese New Year:

As many of you may know, Chinese New Year begins next week! This is a 7-day public holiday starting 01/31 – 02/06 in China. Chinese New Year (CNY) is an annual occurrence that has a substantial impact on the global freight market.  Production in Chinese factories will be placed on hold during the celebration and some factories are taking extended holiday time due to increased COVID restrictions in various districts. As people in China return to their hometowns to celebrate the holiday, we can expect potential factory start-up delays due to COVID spread and restrictions. During this time of year, ocean container capacity is significantly reduced in a normal setting. This year will likely have a greater impact on an already demanding market with limited capacity. 

What impacts will it have on us?  Immediately none, and we will see within 2 weeks of the CNY a slight slow-down in imports. However, we can expect to see an increased comeback almost immediately after as importers flood product into the country that may have missed the pre-CNY cut dates for shipping.  In domestic trucking, needs at all ports of entry will regain and increase into the U.S. within the next month. 

Other potential impacts to be noted:

  • 2022 Winter Olympics to be held in Beijing from 02/04 – 02/20
    • COVID outbreaks could impact factory workers and production
  • Electricity Rationing
    • In efforts to reduce carbon emissions, many parts in China begin to ration electricity to production facilities

Happy Year of the Tiger!

We are hearing chatter that some production facilities in China will be taking early closures for Chinese New Year. Traditionally, the closure would be from 01/3102/06, but in some cases, factories will close for 15 days or longer due to already existing COVID closures. Please make sure you communicate with your suppliers any extended close dates as this will directly impact shipping and cause further delays in product receivables.

Sunset is here to help with the most basic or complex shipments.  Email [email protected] to speak further about how to manage any International needs that arise.

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