Lunar New Year 2025 - The Year of the Snake
Chinese New Year, also know as the Spring Festival and Lunar New Year, is the most important traditional festival in China. Chinese New year is celebrated in different ways in many countries throughout Asia, such as Singapore, Vietnam, and more.
In 2025, the celebration will coincide with the Year of the Snake, specifically the Year of the Wood Snake, as it combines the animal sign with the five elements: wood, fire, earth, metal, and water.
During this holiday, families of multi-generations will gather and enjoy a rare time of reunion. Although it is a week-long national holiday, many people arrange their leave travelling in advance and often return to their hometowns even if they are far away.
When is the Chinese New Year 2025?
Chinese New Year in 2025 falls on Wednesday, January 29. This date is based on the lunar calendar and varies yearly, typically between January 21 and February 20.
China observes an 8-day public holiday for the Lunar New Year, from New Year’s Day to the 8th day of the lunar calendar year.
People will gather for a big New Year's Eve dinner on January 28th, and some will continue the celebrations till the Lantern Festival on February 12th.
Key dates for the 2025 Chinese New Year：
- 2025 Chinese New Year's Eve: January 28, 2025
- 2025 Chinese New Year's Day: January 29, 2025
- 2025 Chinese Spring Lantern Festival: February 12, 2025
- 2025 Chinese New Year Holiday: January 28, 2024 - February 4, 2025
How long will CNY affect your supply chain?
During the Chinese New Year Holidays, many businesses and factories in China shut down for up to two to four weeks. This can cause significant delays in both production and delivery of goods. Thus, the impact of holidays on shipping can last from four to eight weeks.
Importers should be aware of these disruptions and place orders in advance to avoid inventory running out. It is also important to keep in mind that many workers do not return immediately after the holidays, which can lead to a slower resumption of production.
Here's a time breakdown chart shows the key actions from November 2024 through February 2025 during this period, to help importers and exporters understand the different stages leading up to and after the festival:
The challenges for your supply chain
Slowed down production
Though the Chinese New Year celebration lasts only one week, the factories will typically close 2-4 full weeks ahead as workers travel to their hometowns earlier. It also takes weeks after the holidays for factories to ramp up production to full capacity.
The impact of these plant closures could affect the supply chain over several months. Many Importers usually place orders in advance or arrange for alternative suppliers to avoid shortages. A careful inventory strategy helps to mitigate the risk of extended lead times and possible stock-outs during this period.
Port and shipping congestion causing shipping delays
As companies worldwide try to get their goods out of China before the holiday, the major ports in China will expect a shipping peak. The surge in demand will lead to a shortage of containers and vessels, which in turn will lead to increased shipping and processing time.
Due to the potential congestion in ports, a longer lead time and unexpected cancellations are possible.
To minimize the risk of shipping delay, the key is to add flexibility to your freight portfolio. Booking and shipping in advance, choosing other alternative modes of transportation, and using multiple container types and carriers are all ways to go. Certainly, it is important to maintain close communication with your suppliers.
Fluctuation in freight rates
Freight rates around the Chinese New Year tend to be highly volatile due to surging demand and limited capacity. Rates are expected to rise sharply in the weeks leading up to the holiday, before falling as demand stabilizes.
Air freight is also affected as companies shift to faster shipping options to minimize delays, pushing up prices.
It is important for businesses to budget for potential rate fluctuations and incorporate flexibility into their freight planning to manage costs effectively.
Your local partner is here to help
We understand that it is important to have a good functioning supply chain during the busy shipping season around Chinese New Year. In collaboration with our local office in China, we ensure you are fully prepared for this hectic period. Together, we make sure your shipments arrive at their destination on time.
Want to learn more about our services in and for China? Click here for more information or feel free to contact us.