Chinese New Year: A Celebration and Its Broader Implications on Freight Forwarding

Chinese New Year, also known as Spring Festival or Lunar New Year, is the most significant traditional festival in China. It is also widely celebrated in many other Asian countries, such as Singapore and Vietnam, with varying local customs and traditions.

The traditional Chinese zodiac combines five cultural elements—Wood, Fire, Earth, Metal, and Water. The year 2025 marks the Year of the Wood Snake.

This holiday is a cherished time for families, often spanning multiple generations, to come together and enjoy rare moments of reunion. While officially recognised as a week-long public holiday, many people plan their holidays in advance, often travelling long distances to return to their hometowns.

When is Chinese New Year in 2025?

In 2025, Chinese New Year falls on Wednesday, 29th January. The date is based on the lunar calendar and varies each year, typically occurring between 21st January and 20th February.

The official public holiday lasts for eight days, from the first to the eighth day of the lunar new year. Families traditionally gather for New Year's Eve dinner on 28th January, and some extend their celebrations until the Lantern Festival on 12th February.

Key Dates for Chinese New Year 2025:

• New Year's Eve: 28th January
• Chinese New Year (Day 1): 29th January
• Lantern Festival: 12th February
• Public Holiday Period: 28th January – 4th February

How Long Does Chinese New Year Affect Supply Chains?

During the Chinese New Year holiday, many businesses and factories in China close for two to four weeks, leading to significant delays in production and the delivery of goods. The ripple effects on shipping and logistics can last for four to eight weeks.

In preparation for the closures, factories ramp up production in the weeks leading up to CNY to fulfil orders. This pre-holiday rush creates significant pressure on transportation networks, including air, sea, and rail freight. The period leading up to the holiday typically sees factories working at full capacity, resulting in increased congestion and delays in shipping.

Importers should plan for these disruptions and place orders well in advance to avoid stock shortages. Additionally, it is important to note that many workers do not return immediately after the holiday, which can result in a slower recovery of production capacity following the celebrations.

Transportation Challenges Across Modalities

• Air Freight: The pre-CNY surge often leads to capacity shortages and price hikes in the air freight market. In the weeks leading up to the holiday, the high demand intensifies competition for limited cargo space, particularly as pandemic-era uncertainties around crew availability and flight cancellations continue to affect logistics.
• Sea Freight: Similar to air freight, sea freight experiences port congestion, delays, and rate increases during this period. South China, for instance, often suspends feeder services to the Pearl River Delta, further straining inland transportation and exacerbating delays.
• Rail and Road Freight: While rail freight services typically run up until the final week before CNY, road freight capacity begins to tighten as early as mid-January. History suggests that it takes up to four to six weeks post-CNY for logistics networks, particularly rail and trucking services, to return to normal operating levels.

Strategic Planning is Key

For businesses dependent on Chinese manufacturers, planning ahead is critical to minimise disruptions. Key strategies include:

1. Order Early: Place orders well in advance to avoid the pre-holiday rush and ensure inventory levels are sufficient to cover the downtime.
2. Collaborate Closely with Logistics Providers: Maintaining strong communication with logistics partners can help mitigate unexpected delays or disruptions.
3. Diversify Suppliers: Relying on alternative suppliers outside China during CNY can help reduce dependency and sustain operations.

E2G Holiday Notice for Chinese New Year 2025

E2G Ireland's headquarters in Dublin will remain open during the Chinese New Year period. However, our warehouses in China will be closed for the holidays from 26th January 2025 (27th day of the 12th lunar month) to 3rd February 2025, a total of 9 days. During this time, no shipments or deliveries will be processed in China.

While our Dublin headquarters will operate as usual, parcels and luggage destined for China will only be accepted for collection during the holiday period. Please note that all shipments will be dispatched after the Chinese New Year holidays.

Thank you for your understanding and cooperation. Wishing you a happy and prosperous Year of the Snake!

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(Cover image source: https://chinesenewyear.net/lunar-new-year-2025-guide-year-of-the-snake/)