Chinese New Year (CNY) this year officially lasts from February 15 – 21, but as usual most factories in China close for a longer period of time to allow for travel of workers to and from their hometowns. It is expected that the market disruptions will last well into March.
The usual CNY rush is starting, with shippers trying to book cargo before factories close and carriers introduce blank sailings due to largely reduced shipping volumes.
Space is tightening up, and it is expected that carrier will again use the increased demand to increase cost, with the expectation that some of the filed General Rate Increases will hold until volumes decrease again, and with an expected impact on spot rates.
The last sailings before CNY will most likely again be the most congested ones with a higher risk of cargo being rolled.
We suggest to talk to your vendors and push them to book as early in advance of CNY as possible to avoid late bookings that will meet less space and higher cost.
The impact of CNY also impacts the local transportation in China, with truckers getting booked up early and capacity being reduced by drivers leaving early for the holiday.
Our partners in China advise that freight should be delivered to ports no later than February 11, as most truckers will shut down the day after.
Due to decreased demand carriers will implement blank sailings after the holidays (weeks 7-9) that will impact space availability and also pricing.
Please contact us with specific questions or requirements so that we can work on getting your freight shipped in time.