The Chinese New Year in a Pandemic Logistics’ World

As 2020 came with its challenges there is an overwhelming realization that we understood, “we can do this”. As the pandemic slowly closed some businesses, deterred others, and completely altered others it’s important to understand that WE figured it out. As January comes to a close there is another event that is around the corner in which we need to prepare ourselves for, The Chinese New Year. It’s important to understand what the CNY represents before we can talk about the impact it has on the world and the import/export industry.

The Chinese New Year also referred to as the Lunar New Year is the celebration of the beginning of a new year when referring to the traditional Chinese calendar. Recognized as one of the most important holidays in Asia. In the festivities is traditionally to pay your respect to your Gods, and ancestors. Bringing everyone from your family together to join in on the fun! When they come to celebrate the evening has an incredible feast and typically thoroughly clean their homes to get rid of undesirable fortunes and make room for good luck! Typically, the tradition is welcomed with dumplings and celebrated with cut-outs and couplets garnished by the windows and doors. As the celebration unfolds all of the businesses take off and some do not return for approximately two weeks. However, it’s become more common for the first 7–8 days of the celebration to be spent with your family and then workers would return to their businesses if they deal in an international setting!

As one of the biggest holidays to affect the logistics world it’s important to note that it’s not entirely on CNY’s celebration why the holiday feels so chaotic! On the ground. in anticipation of the event, carriers pull vessels out of rotation to limit demand which drives prices up! This means if you are not someone that is paying big money your cargo would be kicked off to the next available vessel due to the limitations of space! Even if you received some sort of confirmation you can not be entirely sure that can be fulfilled! Which if you are keeping up it’s exactly what happens in the airline industry over the holidays!

Which leaves the other means of transportation, air! Which happens to be exactly what happens in the airlines. Limit carriers to drive up prices and make a big profit due to limited supply in the market! Easy economics stuff! This year the faithful day falls on Friday, February 12th.

Let’s make sure to plan ahead and get ahead of whatever is to come!

Tom Cabral
Tcabral@dts-freight.com
www.linkedin.com/in/cabraltom/
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www.directtrafficsolutions.com