The underlying supply chain challenges of Chinese New Year
China
Every year , those in China gather from far and wide to celebrate Chinese New Year ( also known as Lunar New Year or Spring Festival ). With this significant Chinese celebration falling on February 1 this year ( 2022 ), a seven-day public holiday falls between January 31 and February 6 .
But what does this mean for the supply chain industry ? Over the celebration period , production in factories more or less comes to a standstill , and capacity is significantly reduced across all transport . Regular consequences of the celebration include longer transit times , flight cancellations , and blank sailings , resulting in a significant impact on global freight markets for many weeks . Other factors that are expected to have an impact for not only Chinese but global supply chains in 2022 include COVID-19 , supply chain congestion , power curbs , and the Beijing Winter Olympics . Global transport and logistics specialist DSV recommends that supply chains ensure that they plan ahead and consider alternatives .
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