The Lunar New Year comes early in 2025
Lunar New Year, commonly referred to as Chinese New Year or simply “CNY,” takes place each year between late January and mid-February — typically starting on the second new moon following the winter solstice.
Because of that timing, CNY will arrive earlier in 2025 than it did last year. It will start on Wednesday, January 29, 2025, and be celebrated for 15 days.
CNY celebrations can be grand and include many ceremonial and cultural festivities in Eastern Asia. As the most prominent holiday of the year in this region, Chinese New Year always has a profound impact on global supply chains.
How will CNY affect your supply chain?
Because many overseas factories shut down for the entire 15 days of CNY, companies that ship internationally typically know things will slow down during this period. But that isn’t the only reason for disruption. As a public holiday, residents of China get 7 days off from work, but many workers take 3 weeks off prior to the new year to travel home and spend time with family. This means the holiday can delay manufacturing and transportation for more than 5 weeks.
Here is what you can expect to see leading up to and during the Lunar New Year:
Increase in demand
Shipping demand often increases in the weeks leading up to Chinese New Year as businesses work to move freight ahead of the holiday. This uptick in activity can result in higher shipping volumes as companies aim to complete shipments before workers begin their holiday break.
Longer lead times
Overseas suppliers may adjust their lead times during this period to accommodate the holiday schedule. These longer lead times often span several weeks before and after Chinese New Year, typically extending timelines by 4 to 5 weeks.
Potential shipping delays
The temporary closure of factories and businesses across Eastern Asia during Chinese New Year can contribute to shipping delays. Reduced export activity from China during this time may cause backlogs at ports, potentially leading to disruptions before, during and after the holiday.
Slower communication
During Chinese New Year, communication with overseas suppliers or shippers may slow significantly. Many businesses in the region reduce operations or close temporarily, which can delay responses or pause correspondence entirely.
How to avoid disruption
Knowing what to expect is essential to minimizing the holiday’s impact and avoiding freight backlogs. To mitigate these disruptions, most shippers plan to ship their goods well before the holiday. If that isn’t possible, international air is often the best solution for getting goods on time.
Prepare for CNY with ArcBest
ArcBest knows how to help you prepare for the Chinese New Year. With a full suite of solutions available to solve potential disruptions, trust us to help you navigate this year’s global event with ease.
