What Chinese New Year means for retail logistics and shipping
Chinese New Year (CNY) is the biggest of the Chinese holidays. Their celebration of the Lunar New Year significantly impacts global supply chains, disrupting manufacturing and sea freight shipping.
For businesses reliant on goods from China, preparing early is crucial to avoid costly delays and disruptions. Here’s a detailed timeline and what it means for your operations:
Why Early Planning Matters
CNY is not just a one-day celebration. It involves weeks of preparation, travel, and extended holidays.
This period sees factories shutting down, ports operating at reduced capacity, and a surge in demand for shipments prior to the holiday.
A general recommendation is to start planning your shipment at least 4-6 weeks before the Chinese New Year. However, it’s best to consult with your freight forwarder or shipping company for specific advice based on your circumstances.
Failing to plan ahead could lead to missed deadlines, increased costs, and stock shortages.
Key Dates and What to Expect:
From Early January – Preparation Phase Begins
- Businesses start to prepare for the upcoming shutdown. This is the time to finalise and confirm orders before the holiday rush.
From Mid January 2025 – Partial Shutdowns Begin
- Factories start reducing operations as workers prepare to travel home for the holiday.
- Ports operate but may start experiencing slowdowns due to increased traffic and reduced workforce.
- Increased demand and limited capacity: Businesses rush to ship orders before the holiday, creating a bottleneck in capacity.
28th January 2025 – Chinese New Year’s Eve
- Widespread shutdowns: The majority of factories and businesses close. Ports and transportation services are still operational but at reduced capacity.
- Shipments during this time are heavily delayed.
29th January – 4th February 2025 – Peak of CNY Celebrations
- Significant delays: This is the height of the festivities, and logistics operations come to a near standstill. Shipping schedules are unreliable, and goods are unlikely to move during this period.
5th – 11th February 2025 – Extended Holiday
- Slow resumption of operations: CNY celebrations officially end, some businesses start to reopen, but many workers are still traveling back to their workplaces. Factory production is limited, and ports operations remain slow.
Mid February 2025 – Gradual resumption of work
- Factories reopen, backlogs persist: Businesses and factories begin reopening as employees return to work, but it takes time to clear the backlogs of orders and shipments. Ports remain congested and operating below full capacity.
Late February 2025 – Return to full operations
- Most factories and businesses are back to full operation. Ports work to clear any remaining backlogs and return to normal efficiency levels. However, businesses may still experience lingering delays until the backlog is fully resolved.
Early March 2025 – Stabilisation period
- Regular operations resume: Businesses and ports are operating as usual. Shipping schedules on time.
How to Avoid Shipping Delays
- Book Early: Ensure your shipments are booked at least 3-4 weeks before mid-January to secure capacity and avoid higher prices and delays.
- Communicate with suppliers: Discuss production schedules with your suppliers and confirm deadlines well ahead of the holiday period. If your goods are still in the manufacturing stage, you need to account for the time it will take to complete production. Many factories in China start winding down operations one to two weeks before the Chinese New Year.
- Stock up: Anticipate delays and ensure you have sufficient stock to cover the holiday period and any potential disruptions. Allow time for customs clearance and documentation, as these processes can be slower during the holiday period.
- Diversify supply chains: Anticipate delays and have contingency plans in place. If possible, explore alternate suppliers or shipping routes to mitigate risks during the CNY period. Air freight is not as impacted by CNY and requires less lead time than sea freight.
- Monitor progress: Keep in touch with your logistics providers to stay updated on shipping timelines and port congestion.
Chinese New Year varies each year because it is based on the lunisolar Chinese calendar. It will always fall between January 21 and February 21. By planning well in advance, businesses can navigate the challenges of this period and minimise disruption to their operations.
The key takeaway? Start early, communicate clearly, and plan for contingencies. By doing so, you’ll be well-prepared to handle the complexities of CNY and ensure your supply chain remains resilient.
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