As one of the most significant holidays in China, Chinese New Year (CNY) profoundly impacts global shipping, logistics, and supply chains. Scheduled to begin on January 29, 2025, this festive period lasts up to two weeks, with many factories, ports, and businesses shutting down or operating with limited staff. Understanding the implications of CNY on your supply chain is critical to avoid disruptions and ensure seamless operations.
Factory Shutdowns and Production Halt
Chinese New Year sees a nationwide halt in production as factories close their doors for up to four weeks, starting a week before the holiday and often extending beyond its conclusion. The preparation for this shutdown leads to a pre-holiday production rush, with factories attempting to fulfill orders before employees depart for their hometowns. After the holiday, operations typically take another few weeks to normalize as workers return and production resumes.
Increased Freight Transportation Rates
The pre-CNY production surge drives demand for freight transportation, causing a sharp increase in rates for air, ocean, and land freight. Businesses rushing to ship goods before the holiday often face elevated costs, with rates sometimes doubling or tripling in the weeks leading up to CNY. Planning shipments well in advance is crucial to mitigating these expenses.
Potential Congestion and Shipping Delays
The holiday triggers significant congestion at ports and in logistics networks. Ports handle a higher volume of shipments before the holiday, leading to delays and bottlenecks. Post-CNY, the backlog of shipments can take weeks to clear, further compounding delays. Businesses should anticipate slower transit times and build flexibility into their schedules.
Decreased Workforce and Slower Operations
Many workers take extended leave to celebrate with their families, resulting in reduced staffing levels across factories, ports, and transportation hubs. This labor shortage slows down operations even after the official holiday ends, as businesses grapple with workforce gaps and productivity lags.
Key Dates for Chinese New Year 2025
- January 22-28, 2025: Pre-holiday production rush begins.
- January 29, 2025: Chinese New Year Eve—factory shutdowns commence.
- January 30 – February 12, 2025: Official holiday period.
- Mid to Late February 2025: Gradual resumption of operations.
How to Prepare Your Supply Chain
To minimize the impact of Chinese New Year on your logistics:
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Plan Ahead: Place orders and schedule shipments at least 1-2 months before the holiday to avoid congestion and rate hikes.
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Communicate with Suppliers: Maintain open lines of communication with your suppliers to understand their holiday schedules and production timelines.
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Diversify Suppliers: Explore suppliers in regions less affected by CNY to mitigate risks associated with the holiday.
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Build Inventory: Stock up on critical inventory before the holiday to maintain steady operations during the disruption.
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Work with a Logistics Expert: Partnering with a trusted logistics provider like Red Arrow Logistics can help you navigate the complexities of shipping during CNY.
Your Trusted Partner
At Red Arrow Logistics, we specialize in creating tailored solutions to address seasonal challenges. From proactive planning to real-time updates, our team ensures your supply chain remains resilient during the Chinese New Year and beyond.
Red Arrow offers the scale and scope of services including air, ocean, and ground transportation to meet the budget and schedule requirements of the largest and smallest companies alike. If we can be of assistance, please email us at [email protected] or give us a call at 425-747-7914.
