China Updates and Chinese New Year closures
7th January, 2022
In years gone by, we would just be updating you with the Chinese New Year (CNY) dates and the approximate last date whereby a container could be booked prior to CNY. Unfortunately, there is so much more happening at the same time as CNY that will affect your shipments. We are going to have to go a bit deeper than just the CNY dates. Which for the record, are 31st January to 6th February.
Chinese New Year (Year of the Tiger)
Our China partner’s offices will be closed from 31st January to 6th February 2022. As a result of CNY and the many other challenges detailed below securing bookings prior to CNY is difficult. If you are requiring a booking we really need to be hearing from you by COB Friday 7th January please. We are being advised that many manufacturers will take an extended break either side of these dates, if not already, please check with your supplier’s for their closure dates.
China Bookings
With space continuing to be very tight we are requiring up to 3 weeks notice to secure bookings. To ensure that we can meet your shipping needs it is very important to engage our customer service team when you are placing orders with suppliers. Do not wait for the goods to be ready to advise otherwise it could be up to 3 weeks before a booking can be made. Ideally share with us a copy of your PO with an expected goods ready date, we will then engage with the supplier immediately and work with them to have your goods shipped at the earliest possible time. For many customers we are now digitally connected allowing orders to flow from your system straight into ours and the return of all key data and milestones back into your operating system. For further details on how to proceed on this efficient process please contact our sales team on sales@sccargo.com.au
Blank Sailings
A number of blank sailings have been in place either side of the 2022 New year, the subsequent reduction in capacity only adds to the delays and extended time required for bookings.
Feeder vessels
Many of the smaller and inland ports are dependant on feeder vessels in order to connect to mother vessels. Many feeder vessels are currently not operative with the main ports affected by this being Xingang, Dalian, Qingdao and Xiamen.
China Covid Zero Strategy
The impact of this strategy is a multiplier of issues including the recent closure of the key shipping port at Ningbo, there are now significant delays and backlogs at Ningbo with some shipments seeking to be rerouted out of Shanghai. The Covid zero strategy is also affecting trucking, districts can be locked down on short notice resulting in trucks not being able to move through the locked area without a permit. Also if truck drivers reside in the locked down area they are effectively out of action until the lock down is lifted. Many truck driver’s and port side workers are also in self isolation as result of contracting Covid or being deemed a close contact.
Beijing Winter Olympics 4th February to 20th February
We are hopeful that the conclusion of the Beijing Winter Olympics brings about a change in the current shipping conditions, post CNY and now the Olympics is what would normally lead into a quieter shipping period. This year it will likely be a period to catch up on the delays and backlogs and reset for the second half of 2022.
Rates
Ocean freight rates continue to remain high and have seen a slight increase in the lead up to CNY, we are hopeful to see them reducing but not likely until after the winter Olympics.
As always with your overseas orders, please engage the SCC team sales@sccargo.com.au at the earliest possible time as we remain a key component of your supply chain.
