The Chinese New Year (CNY), also called the Lunar New Year, is one of the most significant celebrations in the Chinese calendar. The holiday begins on Wednesday, 29 January 2025, marking the start of the Year of the Snake, and extends until 5 February 2025.
For the global logistics industry, this festive season is a critical period that demands strategic planning as it impacts shipping, logistics, and supply chains. Factory closures, increased freight rates, and workforce shortages during this time can create challenges for businesses worldwide.
Key Impacts of Chinese New Year on Logistics
1. Factory Shutdowns and Production Halts
Many factories across China close for an extended period, starting as early as 22 January 2025, and sometimes not fully resuming operations until mid-February. This results in a pre-holiday production surge, with factories striving to meet orders before the holiday. After the break, it can take weeks to restore normal production levels, leading to delays in order fulfillment.
2. Increased Freight Transportation Rates
The rush to ship goods before CNY causes a spike in demand for freight services, driving up transportation costs. Businesses often face elevated rates for ocean, air, and land freight, with some carriers implementing peak season surcharges.
3. Congestion and Shipping Delays
Ports and logistics networks experience congestion before and after the holiday, as shipments are expedited pre-CNY and backlogs are processed post-CNY. Delays in transit and container availability are common, creating ripple effects across supply chains.
4. Decreased Workforce and Slower Operations
A large portion of the workforce takes extended leave during CNY, leading to reduced staffing levels at factories, ports, and transportation hubs. This often causes slower processing times even after the official holiday period.
How to Prepare Your Supply Chain for Chinese New Year
To minimize disruptions during Chinese New Year, consider these proactive strategies:
Plan Ahead
Place orders and schedule shipments at least 1-2 months before the holiday. Communicate with suppliers to confirm their holiday schedules and ensure alignment on production timelines.
Diversify Suppliers and Shipping Routes
Explore suppliers outside of regions heavily affected by CNY to mitigate production risks. Opt for alternative shipping routes or modes—such as air freight or less congested ports—to avoid delays.
Pre-book Freight Space
Secure container or vessel space in advance to lock in reasonable rates and guarantee availability. For smaller shipments, consider less-than-container load (LCL) options to reduce risks associated with delays.
Build Inventory
Stock up on critical inventory before the holiday to maintain steady operations during the disruption. Use historical data to anticipate customer demand and adjust inventory levels accordingly.
Allocate a Buffer Budget and Timeline
Prepare for potential disruptions by setting aside emergency funds to cover unexpected delays, surcharges, or other contingencies. Build flexibility into your shipping schedule to account for slower transit times.
Key Dates for Chinese New Year 2025
- 22 January 2025: Pre-holiday production rush begins.
- 28-29 January 2025: Chinese New Year Day & Eve, factory shutdowns commence.
- 29 January – 5 February 2025: Official public holiday period.
- Mid-February 2025: Gradual resumption of operations.
Opening hours for Bertling offices:
- China closed 28 January - 4 February
- Singapore and Malaysia closed 29- 30 January
- Indonesia closed 28-29 January
Moving Forward
The Chinese New Year period poses challenges for global logistics, but with proper planning and strategic adjustments, businesses can navigate this time effectively. By preparing well in advance, maintaining open communication with suppliers and logistics providers, and diversifying operations, you can keep your supply chain running smoothly throughout the holiday season.
Let us help you
At Bertling, we understand the complexities of logistics and are committed to providing tailored solutions that address your shipping needs. Contact us at Bertling if you have questions regarding your shipping. Our experts in air freight, sea freight, rail freight, and road freight ensure that your cargo reaches its destination efficiently and on schedule.
We would also like to takte this opportunity to wish our clients and business partners joyful and peaceful Chinese New Year holidays, lots of success, and the best of health for 2025, the Year of the Snake. We look forward to continuing to work with you, no matter the challenges that the New Year brings, and as usual, you can count on our full support.
Please stay safe and healthy!
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