• [email protected]
  • +55 (27) 3019 - 3681
  • 9 9282 - 5359
  • 9 9949 - 5086
  • Chinese New Year: 5 Strategies to Minimize Impacts on Foreign Trade Operations

    According to information from the Ministry of Development, Industry, Trade, and Services, the trade exchange between Brazil and China surpassed US$ 130 billion throughout 2023.

    Besides being the main destination for Brazilian exports, China also stood out as the largest provider of imported goods to Brazil in the first ten months of 2023, contributing to approximately 30.6% of all Brazilian exports to the Asian country.

    These significant figures underscore the fundamental importance of the trade relationship between both countries. However, this economic partnership faces unique logistical challenges, especially due to China’s adherence to the lunar calendar, in contrast to the widely used Gregorian calendar by many countries.

    This difference results in variations in the dates of Chinese holidays, directly impacting global commercial transactions.

    In this scenario, the Chinese New Year stands out as a significant event that profoundly influences global business operations. During this period, China undergoes a recess of approximately three weeks, causing substantial disruptions in production and transportation.

    This pause plays a considerable role in the global supply chain landscape. Therefore, the development of a specific strategic plan for the Chinese New Year becomes crucial for any company involved in commercial activities with China.

    Fully understanding the logistical challenges associated with the Chinese New Year in the international trade scenario, we provide an in-depth analysis of 5 essential strategies for effective planning, aiming to address the specific challenges of this period and ensure the smooth continuity of import and export operations:

    Top Stock Valuation

    In this process, it is important to accurately identify the products that are in greatest demand or that are considered essential for the flow of operations. A careful analysis of historical sales during the Chinese New Year period is essential to adjust accordingly according to demand. In this way, by understanding consumption trends in this specific period, it is possible to make strategic adjustments to inventory, ensuring more efficient management aligned with seasonal demands.

    Strategic Order Anticipation

    This strategic anticipation makes it possible to deal more effectively with possible delays and ensure that demands are met within the necessary time. Furthermore, when placing orders, it is necessary to cover a period of approximately 30 to 40 days to ensure adequate coverage of needs during this time frame.

    In addition, when estimating the required quantity, it is advisable to consider not only the period immediately after ordering, but also planned for the first 3-4 months of the next year. This medium-term demand proposal provides a more comprehensive view and helps avoid possible interruptions in operations due to inadequacies in the quantity of available products. Therefore, by adopting this approach, the company positions itself more resiliently in the face of variations in production and inappropriate production.

    Advance Shipping Scheduling

    To ensure efficient logistics, schedule delivery at the port at least 10 days in advance of the ship’s departure date. This anticipation helps to avoid higher freight rates and prevent frequent delays, common due to the large volume of departures close to closing. This way, the company can optimize costs and ensure on-time shipments during Chinese New Year.

    Proactive Communication with Suppliers

    It is crucial to align deadlines and production capabilities through constant dialogue. Additionally, it is recommended to strengthen business relationships, especially if the partnership is recent, in order to avoid possible prioritization of older customers during the Chinese holiday. Establishing and maintaining solid ties contributes to more efficient collaboration, minimizing potential delays and ensuring the continuity of business operations.

    Development of a Quality Management Plan

    This involves implementing thorough inspections to reduce the risk of shipping delays resulting from quality issues. By carrying out rigorous checks, the company can prevent potential mishaps, ensuring that products meet established standards and are ready to ship efficiently. This proactive approach contributes to maintaining supply chain integrity and customer satisfaction.

    Chinese New Year is not just a cultural celebration, it is a pivotal point in global trade. The logistical particularities of this period require precise strategic planning.

    By understanding and anticipating these challenges, companies can face this festive period with greater security, maintaining efficiency and exploring the opportunities that arise at this time of year. We hope this in-depth guide provides a solid foundation for preparation and smooth sailing during Chinese New Year.