Managing Supply Chain Disruptions During Chinese New Year

Chinese New Year—also known as the Lunar New Year—is the most significant annual holiday in mainland China and parts of East and Southeast Asia. While the official public holiday typically lasts one week, the impact on manufacturing and logistics often extends for several weeks as factories shut down, workers travel home, and freight capacity tightens.

For businesses reliant on Asian production networks, the holiday has become a predictable disruption that requires advance planning rather than reactive response.

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Chinese New Year Supply Chain Impact: Key Facts

• Holiday timing: Chinese New Year typically falls between late January and mid-February. In 2025, it begins on January 29.
• Official closures: Public holidays usually last 7 days, but factory shutdowns often extend 2–4 weeks due to early slowdowns and staggered reopenings.
• Production slowdown: Many manufacturers begin reducing output one to two weeks before the holiday.
• Labor movement: Large-scale worker migration leads to temporary labor shortages, particularly after the holiday period.
• Logistics constraints: Ports, trucking services, and warehouses operate at reduced capacity, contributing to shipment delays before and after the holiday.
• Global exposure: Electronics, textiles, consumer goods, and industrial manufacturing sectors are among the most affected.

Source: Industry estimates from global trade platforms and logistics providers.

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Production Planning and Inventory Management

To mitigate the impact of shutdowns, companies often accelerate production schedules ahead of the holiday. Orders are placed earlier than usual, and inventory buffers are built to cover anticipated downtime.

While this approach increases short-term storage and financing costs, it reduces the risk of supply gaps during peak disruption periods.

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Workforce Availability and Restart Delays

Labor availability remains a key challenge following Chinese New Year. Although factories may officially reopen on schedule, staffing levels often take time to normalize as workers return gradually.

Some businesses plan for phased restarts, prioritizing essential production lines before resuming full operations. This approach helps stabilize output while accounting for labor constraints.

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Logistics and Freight Capacity

Shipping and logistics bottlenecks are a recurring feature of the Chinese New Year period. Reduced port activity, limited trucking capacity, and warehouse slowdowns can delay shipments even after factories resume operations.

To manage these risks, companies frequently secure freight bookings in advance or adjust shipping timelines to reflect reduced capacity.

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A Predictable Disruption in the Global Supply Chain

Rather than treating Chinese New Year as an exceptional event, many businesses now integrate it into annual planning cycles. Procurement schedules, delivery commitments, and revenue forecasts are adjusted to reflect anticipated slowdowns.

As global supply chains remain sensitive to capacity constraints, the ability to plan around predictable disruptions such as Chinese New Year has become a core component of operational resilience.

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