flexport
NEW “DEMAND PLANNING 101” COURSE -  Learn how to better align supply and demand in 5 minutes. Watch Now
English
Flexport
Chinese New Year blog 12-09-21@1.5x

Dec. 16, 2021

For Europe, Lunar New Year Delays May Be Relative

brand-mike

Ready to Get Started?

Flexport makes shipping your cargo transparent, reliable, and affordable

The pre-Lunar New Year period is typically the busiest time for export out of China, as factories rush to get cargo shipped before they close for the holiday.

This year is a bit different, though. The market has experienced peak-level demand throughout already. Here’s what may happen on the Far East Westbound trade lane.

Blank Sailings

Pre-Covid, all available capacity would get deployed ahead of the New Year, and blank sailings would only take place afterwards, once demand dipped.

Now, port congestion leads to vessel delays and vessel sliding, so carriers are introducing blank sailings earlier than in the past.

Covid Lockdowns

The Covid situation in China continues to bring uncertainty. Currently, there is a lockdown in Shaoxing and Zhenhai districts in Zhejiang province.

Depending on developments, there is a possibility lockdowns will be extended to further regions. This would affect production and operations.

Demand Backlog

While demand is strong compared to supply, the overall booking intake for pre-Lunar New Year has been relatively stagnant on the Far East Westbound trade. There is not a huge cargo rush from Asia to Europe, like there is to the US. In terms of absolute volume, December is slightly lower than November.

However, blank sailings and vessel sliding result in limited capacity, so space remains tight. Most January sailings, based on proforma schedule, are expected to delay into the post-New Year period.

But this is because delays already range from anywhere between one week to up to four or five weeks.

We haven’t experienced a Lunar New Year like this one before, so it’s wise to expect and plan for disruptions pre- and post-holiday.

For more insights into trade lane activity, subscribe to the Freight Market Update.

Share the Article

About this author

More From Flexport

Ocean-Alliances-bloghero-Jan13.22

Blog

Ocean Alliances: Everything You Need to Know

Read More
port fees 1 6 22

Blog

As Containers Pile Up, So Do Port Fees. Here’s What You Can Do.

Read More
Warehouse-Tech-Blog 12.31.21

Blog

Is Your Warehouse OK? Depends on How They Collaborate

Read More
arrowImagearrowImage

Ready to Get Started?

Sign up for a Flexport account or ask to see our platform in action.

Get Free Weekly Supply Chain News Updates

Subscribe for the latest news on trade lanes, customs and tariff changes, and expert economic insight.

I agree to the storing and processing of my personal data by Flexport as described in the Terms of Service and Privacy Policy.