How do peak seasons affect apparel factory capacity?

Short answer: Factory capacity is shared between many customers, so lead times change with demand across the year. Before major holidays and in peak seasons for retail, many brands place orders at the same time, so sewing lines, fabric mills, dye houses and trims suppliers are busier. In China, the Lunar New Year holiday is a well-known example: many factories close for a period, workers travel home, and production can take time to return to normal afterwards. Shipping capacity and port operations can also be under pressure in busy periods. All of this means a lead time quoted in a quiet month may not apply in a busy one. Plan for this in three ways. First, plan orders earlier: share forecasts with the factory and place orders before peak periods, so fabric and capacity can be booked. Second, approve samples, materials and artwork quickly, since late approvals push orders into busier weeks. Third, book shipping early, and confirm the Incoterms rule and responsibilities. Under FOB, ICC Academy guidance notes that if the buyer fails to give timely notice of the vessel, or the vessel arrives late or closes for cargo early, the buyer bears the resulting risks and costs, even if the goods are not yet loaded. Under FCA, the buyer's carrier must collect on time. Ask the factory each season for its holiday dates and any capacity limits, and build those into your plan.

What changes in peak periods

• Factory lines are fully booked.
• Fabric and trim lead times extend.
• Holiday closures pause production.
• Shipping capacity is tight.

How to plan

• Share forecasts early.
• Place orders before peaks.
• Approve quickly.
• Book shipping early.

A worked example

As an illustration, a brand could ask its factory for holiday dates in the next six months, and place its reorder so fabric is ready and production is finished before the closure.

After holidays

Expect a slow restart and check the schedule again when the factory reopens.

Fabric and trims

Fabric mills, dye houses and trims suppliers also have peak periods and holidays. If fabric for your order is not booked early, production may be delayed even when sewing capacity is available. Ask the factory when fabric must be ordered to meet your date.

Limits

Capacity depends on factory, region and year. Use current information from your factory and forwarder rather than general rules.

Facts, recommendations and uncertainty

Established: under FOB, the buyer bears risks and costs if it fails to give timely vessel notice or the vessel is late, according to ICC Academy guidance. Recommendation: share forecasts, order early, approve quickly and book shipping early in peak periods. Uncertain: capacity in any given season.

Sources and further reading

• ICC Academy — FCA & FOB Incoterms® 2020 explained: key differences

Standards and regulations are referenced by their published scope. Test parameters, cycles and pass levels should be agreed with your laboratory for the specific product; legal requirements should be confirmed for each destination market.