How holiday affects export in China
If you are a beginner of having trading business with China or you have arranged your production in China, Chinese holidays might cause certain problems to your plan. This blog is aiming at presenting the potential influence to your business arrangement in China that caused by the Chinese holidays. Perhaps you can find useful information that benefits your business.
We have attached a sheet on this blog that states all the national holidays in China. Almost all the factories take holidays according to this sheet. On these days, factories will stop their production line and the production lead time will be longer. This might cause late delivery and economic losses on the buyers.
Exportation during the holidays:
Logistics companies also take holidays according to the sheet, there are cases that the products are finished in the factory but no logistics companies were available for pick up or the logistic companies will pick up the shipment, store it in the transfer warehouse and handle it after the holidays.
Chinese customs is also a problem, the export traffic will be shot up before the holidays and it could lead to a custom blockage.Some factories starts their Chinese New Year Holiday/spring festival one week before the actual holiday starts to make sure all their workers can get back to their hometown on time.
The production efficiency is also very low after the spring festival since the turnover rate is usually very high. A factory can easily lose ten percent of its production line workers if the workers decide to stay at their hometown or they get a better job. One interest practice to retain the workers is to hold off the worker’s bonus before the holidays, workers can get the bonus if they come back after the holidays and they will lose their bonus if they don’t come back.
Again, we have attached a sheet of Chinese national holidays, this sheet could not cover all the holidays for all the Chinese companies but it will at least give you an idea of what you are dealing with. Here is Corbo’s suggestion:
- Make sure your delivery date (shipping out from the factory) is at least seven days ahead of any holidays and spare even more time if it is an ocean shipment.
- Make good planning for your purchasing/production schedule and spare extra days for the Chinese holiday
- Clearly express to your supplier that you want your products to be exported before the holiday if you are aware of certain holidays would affect your schedule.
- Put Chinese holidays into your Google calendar if your Chinese suppliers become crucial to your business.
- Here is the link of Chinese holiday for Google calendar, you can add the Chinese holiday into your calendar and see if your production schedule will be affected by the holidays.
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