Lunar New Year 2022: It's Not Too Late to Prepare
Though many things may change constantly in supply chains, there is one event that impacts shippers every year: Lunar New Year.
In 2022, Lunar New Year falls on February 1 and will be celebrated in various markets across Asia. During this time, and for up to three weeks after, factories and businesses may be operating on reduced capacity, or may even shut down completely, impacting logistics around the world. And with COVID-19 restrictions, businesses around Asia may feel even stronger effects during these holidays this year.
How supply chains may be impacted by the Lunar New Year
During the Lunar New Year holidays, supply chains may experience extra strain as factories close. Depending on the markets, many factories may cease operations completely, and may start to open one or up to several weeks after the Lunar New Year day. It may take up to a month for businesses to reach pre-holiday production levels.
And factory production is not the only hurdle for exporters. Other unforeseeable issues beyond our control such as labor shortages and limited port operations also create additional constraint. The reduced workforce may also lead to more flight cancellations and blank sailings, causing temporary rate surges.
Is it too late to get your inventory ready for the Lunar New Year?
Proper planning to compensate for the one-to-several weeks’ pause generally should begin at least that amount of time in advance. But if you haven’t started planning for your inventories for this holiday before now, it’s not too late.
Shippers can still arrange capacity via air and are encouraged to do so to help boost inventory volumes in preparation for the transportation slowdown. Visit the UPS® Forwarding Hub and add in your shipping details to check current rates and secure space before the holiday begins. Quotes are valid for seven days, so you can lock in your rate quickly to avoid pre-holiday spikes.
In addition, take extra care to prepare your shipping documents correctly and thoroughly to prevent potential delays at the border. Clear communication with your suppliers, freight forwarder, and all other parties involved can help keep your shipments moving as planned.
And as always, communicate with your UPS sales professional to help them understand your needs during the first few months of the year. They can provide additional guidance to help keep your shipments moving.
To start moving your freight out of Asia, get an air freight quote now on the UPS® Forwarding Hub.
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Planning to ship around Lunar New Year?
Stay tuned in to UPS Supply Chain Solutions to hear more about a great discount offer for shipments booked on the UPS Forwarding Hub, coming February 1.
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