Chinese New Year 2025

From January 29 to February 11 , 2025 , China celebrates the Chinese New Year, which implies a significant pause in manufacturing and logistics activities. in this great factory of the world. This period generates a high demand for freight in the previous weeks, driving an increase (20% approx. traditionally ) in costs , while importing companies like you are looking to secure your shipments before factories and ports close.

Below we explain some of the most notable effects :

1.Factory closures and halt in production:                  
During the celebrations, many factories in China close their operations for at least two weeks or Up to a month and a week or two BEFORE the holidays , many also suspend manufacturing or operate at reduced capacity , or experience a rush to fill orders before the holidays and a backlog of orders is created . This means that Orders placed during this period are often delayed and delivery times are extended. In addition, once the holidays are over, the return to productive activity is not immediate, as workers often travel long distances to their hometowns and return in a staggered manner or to the city of the factory where they worked. This can lead to a slow recovery in production levels due to staff shortages .

The industries particularly impacted are: electronics, textiles and fashion, toys and automotive.

2.Increase in transport rates: 
High demand in the weeks leading up to the Chinese New Year often drives up freight rates as most importers try to get their goods shipped before the shutdown. And this year in particular, with the victory of US President Donald Trump, who promises to impose huge tariffs on Chinese imports , massive orders were placed early to overcome Trump’s tariffs and get as much inventory out of China as possible before the start of the holiday. This results in peak season surcharges.

3.Congestion and delays in shipments:
Ports in China typically experience a significant increase in shipping traffic before and after the holidays, leading to bottlenecks, container shortages, long wait times and delays .

How to prepare your supply chain for Chinese New Year 2025

To minimize disruption and ensure your business runs smoothly during this period, consider the following strategies:
1.Monitor statistics to manage inventory effectively: Analyze past order patterns during the Chinese New Year and adjust your inventory strategy to maintain adequate levels during this period of high demand and low production.

2.Budget extra margin and time: Budget for unexpected costs and allow extra time to handle potential shipping delays.

3.Plan ahead and communicate your needs: Coordinate with your logistics agent to understand potential disruptions and their solutions. Make sure everyone involved is aligned on expectations, timelines, and costs.

4.Reserve shipping space and consider alternative options: Evaluate your shipping needs and secure shipping space in advance to avoid delays and obtain better rates. Diversify routes and modes of transport .

In any case, remember that at GUANGZHOU CHINA -LATIN LOGISTICS we are here to help you with any contingency that may arise. Get in touch with us now!

Written by YEN