Just as a lot of the world celebrated the solar New Year on January 1, people who use the lunar calendar, specifically in the Asia-Pacific region, are preparing to celebrate Lunar New Year on February 10, 2024. For businesses involved in exporting goods from Asia, proactive preparedness is essential.
In this article, you’ll learn:
- What Lunar New Year Celebrates
- When Lunar New Year is in 2024
- Ways That Your Business May Be Impacted
- How To Prepare for Lunar New Year
What is Lunar New Year?
Lunar New Year, also referred to as Chinese New Year in some markets, is the celebration of the upcoming year on the traditional Chinese lunar calendar. It is one of the most important holidays in various markets across Asia.
When is Lunar New Year 2024?
The Lunar New Year varies annually as it follows the lunar calendar. In 2024, the actual holiday will occur on Saturday, February 10, but the celebration will take place on February 10 and 11, depending on the markets. With Lunar New Year being such an important holiday, people will celebrate the holidays at home with their families.
How Will My Business Be Impacted by Lunar New Year?
If you export goods from Asia, then your business will most likely be impacted by Lunar New Year holidays. This is because factories in those markets that celebrate Lunar New Year will be closed. During this time and for up to three weeks after, depending on the market, factories and businesses may be operating on reduced capacity or may even shut down completely, impacting logistics around the world. Accordingly, businesses start to move shipments up in preparation, generating a strain in capacity. Business continuity is important, so below are a couple of things to consider when planning your shipments around the Lunar New Year holiday.
- Warehouses and factories will gradually reduce production in the weeks leading up to February 10, which can increase demand in the coming weeks prior to the holiday. 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.
- You can expect the warehouses and factories in certain markets to be closed for a few days or up to three weeks, as people travel home to celebrate.
- 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 fluctuations. Just as production gradually reduces before the holiday, production will also gradually increase in the weeks following the Lunar New Year holiday. Allowing extra time both before and after the holiday is important.
How To Best Prepare for Lunar New Year 2024
Proper planning to compensate for the one-to-several weeks’ pause generally should begin at least that amount of time in advance.
- Book Your Shipments Early. Plan to book your shipments before the actual Lunar New Year holiday on February 10 to avoid the pause in production. 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.
- Prioritize Your Goods. If some goods in your shipment are timelier than others, consider splitting the shipment and utilizing air freight to move the prioritized goods. This can help you manage your timeline.
- Utilize Different Transportation Modes. If you normally ship by ocean, consider shipping by air. The faster transit time could help you avoid delays.
- Make Sure Your Documents are Correct. 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.
- Have a Back-Up Plan. Shipments could be delayed or disrupted due to Lunar New Year celebrations and having a contingency plan is important to ensure business continuity.
- Talk to Us. 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.
