Preparing your supply chain for Chinese New Year 2025

Chinese New Year (CNY), which falls on 29th of January in 2025, is one of the most celebrated festivals in China, however, it also marks a period of heightened risk and disruption to supply chains.

The ripple effects of factory closures, labour shortages, and logistics delays begin in early January and can last well into March, making preparation critical for businesses reliant on Chinese manufacturing.

Production typically begins to slow in early January as workers take leave. By mid-January, manufacturing output is significantly reduced, and logistics networks face capacity issues.

Industries most affected
Electronics: Components and finished products.
Textiles and apparel: Garments and accessories.
Toys: Manufacturing and shipping.
Automotive: Parts and vehicle production.

Key impacts of CNY on supply chains

Factory closures: Production slows significantly in early January, and factories shut down completely during the official holiday (29th January – 4th February). This results in delays for any orders placed during or shortly before the festive period.

Port congestion: Ports experience a surge in shipments before CNY as businesses rush to complete orders. Post-holiday, container shortages and delays are common as backlogs are cleared.

Freight rate increases: The high demand for shipping in the weeks leading up to CNY often results in inflated freight costs and additional surcharges.

Workforce recovery: After the Lantern Festival on 12th February, a gradual return of workers slows the resumption of full production capacity, extending lead times.

How businesses can mitigate these risks

Align production schedules: Work with suppliers to prioritise critical orders and adjust timelines to avoid peak disruption periods.

Build buffer inventory: Increase stock levels of high-demand products before January to ensure sufficient supply during low-production weeks.

Secure freight space early: Book shipping slots months in advance to avoid delays or inflated costs. Consider air freight as a faster alternative for essential shipments.

Explore alternative suppliers: Reduce reliance on a single source by diversifying your supplier base or leveraging suppliers in unaffected regions.

Communicate proactively: Regularly update customers about potential delays and expected lead times to manage expectations.

Supply chains must demonstrate exceptional resilience to overcome the challenges of Chinese New Year (CNY). Our PowerView supply chain management platform is a key enabler, offering enhanced global visibility and control over inventory and consignments. By providing precise insights, it ensures our customers’ supply chains remain agile, protected, and efficient during this critical period.

To better support your operations, we encourage you to share your shipping forecasts. This will allow us to gain a comprehensive understanding of your requirements, enabling us to proactively manage your vendors and secure freight bookings in a timely and efficient manner.

We are committed to helping your business maintain seamless operations, even in the face of seasonal disruptions. For tailored advice, detailed information on shipping during this period, or to request a quote, please EMAIL Matt Fullard at matt.fullard@noatumlogistics.com or visit www.noatumlogistics.com/uk