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Chinese New Year 2019

Happy New Year and of course, Happy Chinese New Year 2019! The Chinese New Year 2019 is fast approaching. The public holiday in China for Chinese New Year (CNY) is from 4 February to 10 February 2019 (week 6).

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Chinese New Year 2017 – Plan Ahead

Happy New Year and of course, Happy Chinese New Year. China’s most important festival, also known as Spring Festival will be here before you know it. Most businesses in China and Hong Kong (as well as many other Asian nations) close for a week and sometimes longer in order for staff to travel to be with their families for the celebrations. This can cause delays in obtaining Customs Clearance documentation for Australian businesses importing cargo from China and elsewhere in the region.

The official date for celebration is January 28th 2017, however factories and freight forwarders will begin their vacation from January 27th until February 2nd. However, many factories do close earlier so it’s best to confirm with your individual suppliers.

The following vessels from China are due to call Australia over the period from 26th of January until the 3rd of February

Aglaia
ANL Wahroonga
ANL Wyong
Argos
CSCL New York
Xin Yan Tian
Irenes Warwick
Ital Libera
MOL Prestige
Northern Precision
OOCL Shanghai
SC Mara
Sea Pearl
Xin Yan Tian
YM Singapore

Our Chinese Agent offices will be closed on the following dates

• Hong Kong Offices Closed January 28th to 31st returning February 1st
• China Offices Closed January 27th to February 2nd returning February 3rd
In order to avoid any delays receiving documentation over this period please ensure that your supplier provides all documentation including any applicable original bill of ladings, fumigation certificates and packing declarations.
Delays in receiving documentation can result in significant storage and demurrage costs.

If you have any queries or would like more information, please call your Magellan Customer Service team member on 1300 651 888.

Fun Facts:

• 2017 is the Year of The Fire Rooster
• Active, amusing and popular within a crowd are just some of the traits associated with Rooster.
• If you are born in the Year of the Rooster, you are a hard worker and courageous, you like attention in public and you are very strong-willed
• 2017 will be a good year for romance.
• The Year of the Rooster would be a good year financially especially for restaurant owners, hairdressers and journalists
• Celebrities Britney Spears, Elton John, Matt Damon and Roger Federer were born in the year of the rooster.
• Years of the Rooster include 1969, 1981, 1993, 2005, 2017 and 2029.

 

Sources:
Brisbane Courier Mail

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China: Plan well ahead for Chinese New Year in 2016.

Christmas probably seems all encompassing right now, but Chinese New Year (CNY) in 2016 will be upon us before we know it. Next year the Chinese holiday for Chinese New Year is from 7 Feb to 13 Feb, 2016 (week 6).

To minimise the rush and avoid potential disappointment in the movement of your freight from China, please take some time to consider your shipping needs well in advance of the holiday.   Please see below for details

 

FCL Shipments

Most factories shut down between 7 Feb and 22 Feb and some for even longer.  While the factories make every effort to process as many orders as possible before the holiday, we recommend booking shipments at least 14 days in advance to avoid disappointment.

As there is already one cancelled sailing in January before CNY, space will become very tight in the two weeks leading up to the holiday.   During this time, ports will become congested and some shipping lines may accept container bookings in excess of the capacity of some ships, and roll these over to the next available vessel resulting in delayed movements.

For Pearl River Delta ports (PRD) – such as Guangzhou, Huangpu, Foshan, Rongqi, Beijiao…etc, the last feeder sailing before CNY will depart on or round 2 February.  Again we recommend booking this at least 2 weeks before sailing.

 

LCL Shipments

As for above FCLs, however please add a further week.

 

China Customs

The duty schedules of Chinese Customs during CNY will only be announced by the Government around 1 February 2016.  Typically, Chinese Customs arranges a skeleton staff or half day duty during the CNY holidays, so processing delays with export Customs clearance should be expected.  Also, most customs brokers and LCL warehouses will close. Therefore, we suggest the following:

  • All shipments must be handled and customs clearance completed before CNY.
  • For PRD ports origin, the customs office will be closed during CNY, all Customs clearance processes must be completed before 30 January.
  • For emergency or special cases which may be encountered during the holiday, advance notice (including full and complete customs documents) will be required to determine feasibility.

 

Trucking Service 

Most of the transport companies will stop services one week before the CNY.  As with the ports, the trucking companies will be at capacity in the two weeks leading up to CNY.  During this time, trucking arrangements will need to be booked at least 10 days (FCL) & 7-10 days (LCL) in advance of requirements.

There will also be increases in trucking costs during and before CNY.

Last dates for trucking services before the holiday:

Last dates for trucking services before CNY

If you have any queries or would like more information, please call me or one of our Customer Service team members on 1300 651 888 or send me an email.

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Chinese New Year 2015

What does the celebration represent and how might this national holiday impact your shipments?

Chinese New Year (CNY), also known as the Lunar New Year or the Spring Festival, is the most important of the traditional Chinese holidays.

CNY is based on the Chinese calendar and usually begins on a different date each year. It is based on the moon’s orbit around the earth.  The festival traditionally begins on the first day of the first month in the Chinese calendar and ends on the 15th of the month. Each CNY is symbolized and named after one of 12 particular animals (Rat, Ox, Tiger, Rabbit, Dragon, Snake, Horse, Goat, Monkey, Rooster, Dog and Pig) and consists of a 12 year cycle. 2015 is the year of the Goat.

The holiday for CNY is officially recognized by the government as 7 days, with typical CNY celebrations lasting for 15 days. In 2015, holidays start on 19th February until 25th February.

Within China, regional customs and traditions concerning the celebration of the CNY vary widely. People will pour out their money to buy presents, decorations, material, food, and clothing. It is also the tradition that every family thoroughly cleans the house to sweep away any ill-fortune in the hope to make way for incoming good luck. Windows and doors will be decorated with red colour paper cut-outs and poems with popular themes of “happiness”, “wealth”, and “longevity”. On the Eve of CNY, supper is a feast spent with family. Food will include pork, duck, chicken and sweet delicacies. The family will end the night with firecrackers. Early the next morning, children will greet their parents by wishing them a healthy and happy new year, and receive money in red paper envelopes. The CNY tradition is a great way to reconcile by forgetting all grudges, and sincerely wishing peace and happiness for everyone.

Effect on your imports / exports during Chinese New Year

As is the same every year, CNY has a massive impact on sea freight and transportation to and from Australia. During the holiday, most areas of government, construction and factories shut down, while ports and customs usually operate with a skeleton staff focusing on perishable priority items that are time-sensitive only, such as fresh produce.

Manufacturing plants across China typically shut down and tens of millions of workers make long trips back to their home towns from the industrial cities where their jobs are based. It has a huge impact on all global supply chains originating from China and it’s not always back to business as usual, before and after the 15 day celebration. The celebrations are also expected to affect port operations in terms of loading, barging schedules and possibly product availability. It can have a considerable effect on your supply chain during the celebration and should be planned for.

When the New Year approaches, factories kick into high-gear in an attempt to ship as many orders as possible before officially shutting down for the holiday.  Major retailers tend to plan ahead to accommodate for the manufacturing shutdown in China during the CNY. Planning and coordination are key to ensuring your supply chain continues to run smoothly during this period and you have enough merchandise for your customers. Importers and exporters will also need to make changes to their production and shipping schedules to ensure they have enough goods to get them through the downtime caused by the factory closures. Stocks are also at times kept in storage until factories are up and running again. China’s entire transportation system is practically at capacity during this time, and it is common for issues with container and truck availability when shipping goods close for CNY.

The shipping lines often introduce GRI (general rate increase) in January for peak demand before CNY, and space becomes tight as all suppliers struggle to ship their cargo before the holidays, as well as considering blank sailing programs with shipping lines.

The container shipping lines servicing the North East Asia-Australia trade lanes are moving to cut back on capacity and skipping a series of sailings. This Blank Sailing Program with shipping lines from all 9 consortiums, participate in managing the available space in the off peak period to combat the over-supply of tonnage in the shipping trade. Particularly during the two weeks of CNY, in preparation of volume lulls following the start of the holiday on February 19th, 2015, capacity will be cut by 35 – 42% which will mean less available space on the berth. Trade will be slow due to factories closing over the CNY Period and the traditional off peak period commences. Port capacity is limited and congestion is increased weeks before and after CNY that can lead to delays at the ports limiting the availability of goods in the supply chain. In China and its mainland ports, the celebrations are also expected to affect port operations in terms of loading, barging schedules, etc

chinese-new-year-2015

Timeframes to consider & planning

Shipments must be at port at least 10-14 days before Chinese New Year to ensure shipment before the break starts. Shipments must also be booked at least two weeks in advance because space quickly fills up. If you ship a large amount around that time, then congestion will likely bump at least one of your shipments to a later ship date, often a week after CNY if you do not manage your shipments in time. Most ports open again for normal shipping about one week after CNY. Filling containers and preparing customs declaration documents well in advance of the holiday are advisable steps to take. Ports will have major congestion the week leading up to and after the New Year as factories gear up for the shut down and return to work.

In summary, when planning for peak season, be sure to have a buffer for CNY – Two or three weeks for bookings and then another week for ETA in case of delays.

This annual celebration should be a part of your yearly supply chain planning.

Here are the dates of Chinese New Year for the next 6 years for your reference:

chinese-new-year-6-year-dates

We hope this article provides insights on how Chinese New Year may affect your shipping and the necessary steps to take to prevent facing supply chain and shipping delays at this time of the year.

For more information please contact your Magellan account representative, email info@maglog.com.au or our customs team on 1300 651 888.

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