The Chinese New Year (CNY), or Lunar New Year, is a joyous occasion in China but can be a challenging period for global supply chains.
In 2025, the holiday begins on 29th January and concludes with the Lantern Festival on 12th February. Its impact, however, extends beyond these dates, creating a ripple effect across industries worldwide. For businesses reliant on Chinese manufacturing, preparing early is vital to mitigate disruption.
Production typically begins to slow in early January as workers take leave. By mid-January, manufacturing output is significantly reduced, and logistics networks face capacity issues.
During the official CNY period, from 29th January to 4th February, most factories, ports, and freight services are shut down entirely. While operations resume gradually after the Lantern Festival, it can take until mid-March for factories to fully normalise production.
Impacts on supply chains
Severe delays: Factory shutdowns lead to delayed production and delivery timelines, particularly for industries like electronics, textiles, and automotive.
Increased costs: Freight rates rise sharply before CNY due to high demand, often including peak season surcharges. Post-holiday, container shortages and port congestion exacerbate delays and costs.
Labour shortages: Even after the holidays, a staggered return of workers impacts production capacity and shipment schedules.
Inventory challenges: Businesses dependent on “just-in-time” manufacturing often face stockouts due to extended lead times.
Mitigation strategies for businesses
Plan shipments early: Secure bookings with carriers well in advance of the holiday to avoid last-minute surcharges or delays. Consider less-than-container loads (LCL) to maintain flexibility.
Diversify suppliers and routes: Minimise reliance on a single supplier or port to reduce the risk of disruption. Explore alternate shipping modes, such as air freight, if feasible.
Optimise inventory management: Build up stock levels for high-demand products before the holiday period to cover production shortfalls.
Enhance communication: Collaborate closely with suppliers, logistics providers, and customers to ensure all parties are aligned on timelines and contingencies.
Post-holiday strategy: Prepare for slow recovery by staggering production schedules and ensuring sufficient resources to handle delayed shipments.
Supply chains must demonstrate resilience to navigate the challenges posed by Chinese New Year (CNY). Our POM and Clarity tracking platforms play a vital role in enhancing visibility and providing precise control, ensuring our customers’ supply chains remain protected and agile during this critical period.
To help us better support your needs, we kindly ask you to share your shipping forecasts. This allows us to gain a clearer understanding of your requirements, enabling us to manage your vendors and secure freight bookings effectively.
We’re here to help ensure your operations run smoothly despite seasonal disruptions. For tailored advice, comprehensive information on shipping during this time of year, or to request quotes, please EMAIL Andy Costara.
