Time to read: 3 min
Fictiv’s Monthly Supply Chain Update series gives you insight into the logistics challenges, transit times, and related manufacturing issues we’re currently facing.
In our December update, we discussed the impact of Chinese New Year (CNY) on overseas production. The holiday itself runs from January 31st-February 6th, so production facilities, airports, and customs are closed during this time.
Fictiv’s Overseas Production Holiday is from Jan 25 to Feb 7
This is why our last overseas shipping day was January 21st and our last production day will be January 28th. We will resume production with our manufacturing partners and shipping with our carriers on February 7th.
Impact of Omicron on Shipments
We’re confident that we’ll continue to fulfill orders on our promised dates, but the recent Omicron COVID outbreak has affected operations in some of the major airports in China, and delays may occur. The flare-ups have been concentrated in northern China, so more air shipments have been diverted to hubs in the south. Additionally, our domestic manufacturing partners are unaffected by the holiday, but there have been delays in deliveries due to Omicron caused staff shortages.
Last week, shipments out of the Shenzhen airport moved slower than expected when a worker tested positive for COVID-19 and operations had to be run by a skeleton crew while many were quarantined — which delayed the transit time of some orders by a day or two. However, as of January 21st, Shenzhen airport was back to standard operations and shipping capacity. This return to standard operations was also bolstered by additional released shipping capacity from other airports nearby, including Guangzhou.
Carrier and Customs Operations Update
From January 31 – February 3, carriers will not pick up any goods, and from February 4-6, there will be some pickups but no customs clearance or deliveries. So, we expect the warehouses at the airport terminals will be full when employees are back to work after CNY ends. China customs will also be on a break during the holiday, but a skeleton crew will remain working to help release some of the more urgent cargo.
That being said, we have developed our plans in anticipation of the export backlog. Our last shipping date before the holiday was January 21, to avoid congestion in the ports of origin and issues with the clearance process that could delay your order. And to ensure we get orders out on time, where possible we’ve been working with our manufacturing partners over the last few weeks to produce parts ahead of schedule to help get them shipped before CNY.
Rest assured, we’ll be ready to hit the ground running once our international partners return to work, but in the meantime, please contact logistics@fictiv.com if you have any questions!
Don’t Forget Our Shipment Upgrade Program
We realize not all our customers are familiar with import and export formalities when placing an order through our platform for production overseas.
That’s why we created a Shipment Upgrade Program for qualified orders, where we sell you goods under Delivery Duty Paid (DDP) terms of sale. If your order qualifies for our Shipment Upgrade Program, Fictiv assumes all the import and export responsibility, ensuring your goods are delivered up to your door. You can learn more about this program here.
