How the Lunar New Year 2025 will Impact your Supply Chain: Key Dates, Challenges and Tips

Written by BTX Global Logistics | Jan 8, 2025 2:45:25 PM

The Lunar New Year, also known as the Chinese New Year (CNY), is one of the most important holiday periods in global logistics. For businesses, it can present specific challenges due to factory closures, reduced workforce and potential shipping disruptions. Here is everything you need to know about the Lunar New Year 2025 and how to keep your supply chain running smoothly during this period.

When is the Lunar New Year 2025?
The Lunar New Year begins on January 29th, ushering in the ‘Year of the Snake’. This marks the start of the holiday season, including a week of official public holidays — from January 28th to February 4th — and may extend unofficially for a few weeks.

The festivities commence on January 22nd and continue until February 9th. Many businesses start their Lunar New Year preparations early and reduce production up to three weeks in advance. Full operations may resume by the second or third week of February, typically after the Lantern Festival on February 12th.

Key Dates in Lunar New Year 2025 for your Supply Chain
Understanding the timeline of Lunar New Year closures helps businesses anticipate shifts in production, shipment schedules, and port operations. Here are the critical dates to monitor:

  • Early January:  Some factories begin slowing down production
  • Mid-January: Production drops as workers start taking leave and operational capacities at ports decrease
  • January 28 - February 4: Lunar New Year 2025
  • Early to Mid-February: Gradual reopening of businesses after the holiday period
  • February 12: Lantern Festival, marking the official end of the new year period, signaling a full return to work 

How will Lunar New Year 2025 impact shipping, logistics, and supply chains?
The Lunar New Year holiday period significantly affects the global shipping landscape due to the sheer volume of factory closures and a sharp decline in production, thus leading to disruptions in supply chain and logistics operations.

  • Factory shutdowns and production halt
    Many factories suspend operations or operate at reduced capacity for a week or two before the actual Lunar New Year festivities. This pause in production means orders placed during the holiday period are often delayed until production resumes.
  • Increased freight transportation rates
    High demand in the weeks leading up to the Lunar holiday often pushes freight rates up, as businesses try to ship goods out before the break. This can lead to a spike in transportation costs due to ‘peak season surcharges’ during this period.
  • Potential congestion and shipping delays
    Ports in China often experience a heavy rush of shipments before and after the holidays, resulting in container unavailability, bottlenecks, longer wait times, and delays in imports and exports. This can cause a domino effect across the entire supply chain.
  • Decreased workforce and slower operations
    The labor shortage often extends into the post-holiday season as workers gradually return to work — reducing staffing levels, impacting timelines, and causing further delays. Businesses usually need additional time to restore full operational capacity.
Key industries affected by the Lunar New Year closures include:
  • Electronics: Components and finished products
  • Textiles and apparel: Garments and accessories
  • Toys: Manufacturing and shipping of toys
  • Automotive: Parts and vehicle production

How to prepare your supply chain for Chinese New Year 2025
Planning and communication are the keys to managing your logistics operations and minimizing potential disruptions on your business. To prepare your supply chain, consider implementing these proactive strategies:

  1. Plan ahead and communicate your needs clearly.
    Know the dates for the 2025 Lunar New Year when planning your shipments. Talk with your logistics service providers to understand their solutions during the holiday period, potential causes for disruptions, and plan of action in case of delays. Ensure everyone is aligned regarding expectations, including timelines, costs, and services.

  2. Pre-book vessel space for containers or opt for LCL.
    Gauge your shipping requirements and secure space with your carrier at reasonable shipping rates well in advance. Alternatively, when dealing with large shipment volumes around peak season, opt for less-than-container loads (LCLs). This way, you reduce the risk of significant disruptions, as any delays affecting one container or vessel will not impact the entire shipment.

  3. Leverage data for effective inventory management.
    Analyze past customer behaviors and historical order patterns during the Lunar New Year season. Consider modifying your inventory strategy to maintain stock levels during this high-demand, low-production period. Identify critical inventory items for stockpiling to avoid shortages and ensure you can meet customer demands.

  4. Diversify your shipping routes and modes.
    Explore alternatives to minimize reliance on specific ports, routes, and transportation modes. Instead of shipping only via sea, consider intermodal and air freight options. Rather than shipping via larger ports (like Shanghai or Shenzhen) with higher congestion and longer dwell times, choose less-frequented ports (like Xiamen or Lianyungang). It may add to your transit time but can help avoid port congestion and related surcharges (like demurrage and detention).

  5. Maintain a just-in-case Lunar New Year shipping budget and timeline.
    Due to Lunar New Year induced delays or disruptions, operational costs can add up quickly. Cargo damage or container loss is also commonplace. So, always plan for contingencies and allocate emergency funds for these times. This helps you address unforeseen issues without particularly impacting your operations or profits. Having a buffer period also helps overcome unexpected port hold-ups.

Looking ahead
The Lunar New Year is a meaningful time of celebration, family reunions, and new beginnings. And while it may challenge your logistics strategies, it also showcases the strength of preparedness, communication, and the adaptability of a resilient supply chain.

Source: Maersk Logistics https://www.maersk.com/logistics-explained/freight-seasons/2024/11/14/chinese-new-year-2025 

BTX Global Logistics is a full-service shipping and logistics organization known for providing reliable, flexible solutions to its customers. BTX's services include air freight, ground freight, sea freight, retail logistics services, expedited shipping, trade show, customs brokerage, ecommerce, fulfillment, and more.
View full post