HONG KONG (AP) – Decades ago the Chinese New Year holiday, also known as Spring Festival, had little impact outside of China. But as the country has gained outsized economic influence, the holiday, which has enormous cultural significance in the Chinese-speaking world, has become more prominent. This is how it ripples around the world.
– FACTORY FREEZE
Chinese factories shut down for the holiday and then some, with hundreds of millions of migrant workers heading to their hometowns, part of the world’s largest mass movement of people. In the lead up to the holiday, factories run flat out to fill orders before shutting. The holiday itself runs from Feb. 18 to 24 this year, but workers start setting off as much as two weeks earlier on packed trains and buses. After the holiday they may take the same amount of time to return, or not. The holiday is a prime occasion to switch jobs.
It all means an annual headache for retailers and importers overseas who rely on China. Shipping companies warn customers that China’s transport and logistics networks are at capacity and their shipments must be at ports two weeks ahead of the holiday to stand a chance of getting on a boat before the country shuts down. This year, shipping delays are compounded by a slowdown at U.S. West Coast ports.
– QUIET MARKETS