The best strategy is to plan ahead and work closely with your supply chain vendors. Demand is not anticipated to slow down post-CNY, therefore space will be tight up to CNY and post-CNY as well. Carriers have not announced the amount of blank sailings that they usually would before CNY to accommodate the demand in the market. Due to the effects of COVID-19 accelerating the development of e-commerce in the US and consumer purchasing behaviors changing, overall demand remains very strong. This will mean fewer voyages and services available in a week or two after CNY.Ĭhinese New Year 2021 will be different than years past due to the special circumstances in the current market. In advance of Chinese New Year, ocean freight space will be tight and most freight services will be full.Īfter Chinese New Year, carriers will have more blank sailings in order to better align capacity to demand. How will ocean freight space be impacted? We are working very closely with our partners, and with the carriers, to stay in the loop we’ll be sharing updates as additional information becomes available. Depending on the strength of the market, carriers may add additional capacity to match demand. They will likely make this announcement as late as possible to retain unpredictability in the market, in an effort to make GRI/PSS stick.
Ocean carriers will announce General Rate Increases (GRI) as the holiday approaches.Ĭarriers will launch their blank sailing programs in late December of last year / early January of this year. Truckers will be also difficult to secure before CNY, and their services will be more expensive. Before Chinese New Year, we will see challenges for FCL because cfs cut off caused by warehouse closures, while after Chinese New Year, we will see OMIT LCL sailings caused by blank sailings. Rates should begin decreasing 1-2 weeks after Chinese New Year.Īdditionally, space will become more difficult to secure, and carriers will be overbooked earlier than usual.
In anticipation of Chinese New Year, ocean freight and airfreight rates will increase significantly we expect to see these higher rates as early as mid-December of last year.
All in all, factories are closed and/or operating at diminished capacity for at least 4 weeks. Most factory workers will travel a long way to spend the holiday with their families, so there will be additional closings, delays, and disruptions on supply chain before and after CNY. How will Chinese New Year closures impact LCL shipping?įactories will be closed for the entire week of Chinese New Year. It’s always around the end of January or early February of the year ( Lunar Calendar). Chinese New Year, also known as the Lunar New Year or Spring Festival, is the biggest Chinese celebration of the year.
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