Chinese New Year 2025: Challenges and solutions

Celebrated from 29th January to 4th February in 2025, CNY or Lunar New Year is a time of joy and tradition for millions. For global supply chains, however, it signals weeks of disruptions as factories shut down, ports operate at reduced capacity, and production slows. 

By understanding the challenges posed by CNY and implementing robust mitigation strategies, businesses can navigate the complexities of this period and maintain supply chain resilience.

Impacts of CNY
1. Disruptions in production: Factories, particularly those in the electronic, apparel, toy and automotive sectors begin scaling back operations in early January, leading to reduced output. The official holiday halts most manufacturing activities entirely.

2. Shipping delays: The rush to ship orders before CNY causes port congestion and container shortages. Post-holiday, the backlog of shipments can take weeks to clear.

 3. Increased logistics costs: High demand for shipping results in peak season surcharges and inflated freight rates.

4. Extended recovery times: Even after the Lantern Festival on 12th February, it takes 4–6 weeks for factories and logistics networks to fully normalise.

Strategies to mitigate impact
• Advance planning: Secure freight bookings and finalise critical orders well before early January. Anticipate delays and adjust delivery timelines accordingly.

• Inventory management: Stockpile essential items to cover customer demand during the low-production period.

• Alternative transport modes: Evaluate the feasibility of using air freight or diversifying shipping routes to mitigate delays.

• Supplier collaboration: Work closely with suppliers to identify potential bottlenecks and develop contingency plans.

• Post-holiday strategies: Prepare for the gradual return of operations by maintaining flexibility in production schedules and communicating regularly with logistics providers.

Supply chains must remain resilient to navigate the challenges of Chinese New Year, which is why we enhance vendor coordination and consignment availability, ensuring your supply chain stays functional and protected during this critical period.

To support your operations, please share your shipping forecasts. This helps us manage your vendors and secure freight bookings efficiently, minimising disruptions.

For advice, shipping insights, or to request quotes, EMAIL Colin Redman. We’re here to help you maintain seamless operations during this busy season.