Chinese New Year shutdown: How to plan supply chain
Last updated: 30 May 2025
Prepare your supply chain for 2025’s Chinese New Year shutdown with strategies to minimize disruptions and ensure smooth operations
Key takeaways
- Start planning for Chinese New Year 2026 at least 6–8 months in advance to avoid production delays and shipping bottlenecks
- Place orders early and confirm supplier shutdown schedules to secure manufacturing slots and meet delivery timelines
- Build a 30–40% inventory buffer for top-selling and seasonal products to maintain stock levels during the extended factory closures
- Book freight early, split shipments when needed, and budget for a 20–30% surge in transportation costs leading up to the holiday
- Maintain strong supplier and logistics communication, and prepare financially with a 15–20% contingency fund to handle unexpected expenses
While China’s annual exports of 23.8 trillion Yuan (2023) underscore its manufacturing dominance, the predictable CNY shutdown is less of a sudden disruption and more of a scheduled pause that global supply chains must systematically prepare for.
The coordinated 2-3 week pause allows millions of workers to return home for Chinese New Year festivities.
As Lunar New Year approaches, businesses should start preparing 6-8 months in advance to minimize disruptions and maintain smooth operations.
Take a look at the top strategies and critical timelines to navigate the CNY shutdown period. But first, let’s begin with how to prepare for this annual event.
Table of Contents
Chinese New Year 2026: When do the celebrations start?
In 2026, according to the lunar calendar, Chinese New Year (also known as Lunar New Year) falls on February 17, marking the beginning of the Year of the Horse. The official public holiday in China runs from February 17 to February 23, 2026, but the impact on manufacturing and logistics extends well beyond these dates. Factories typically begin slowing down operations in late January, with many workers starting their travels home by early February.
Timeline for Chinese New Year 2026
- Main festival: February 17, 2026 (Tuesday)
- Official holiday period: February 17 – February 23, 2026
- Factory impact period: Late January – Late February 2026
- Lantern Festival (end of celebrations): March 3, 2026
The holiday disrupts manufacturing across East and Southeast Asia, including China, Taiwan, Vietnam, Malaysia, Singapore, and Indonesia where CNY is an important holiday. Production typically resumes gradually about 1-2 weeks after the festival as workers return, but full operational capacity may take an additional 2-3 weeks after factories close due to labor shortages, order backlogs, and shipping delays.
Chinese New Year shutdown 2025 timeline
To help you plan effectively, here’s a breakdown of how the shutdown typically unfolds around the festival. (Note: This is an approximate guide—actual dates vary by supplier and region. Always confirm closure schedules with your partners.)
3-4 weeks before CNY
- Production begins slowing down
- New orders face extended lead times
- Suppliers stop accepting last-minute rush orders
1-2 weeks before CNY
- Most factories halt production
- Workers start traveling home
- Logistics experience delays as pre-holiday shipping surges
Chinese New Year (Day 1)
- Official holiday begins (Festival starts)
1-2 weeks after CNY
- Peak holiday period (Factories remain closed)
- Minimal operations, if any
2-3 weeks after CNY
- Workers gradually return
- Partial production resumes (Low capacity)
3-4 weeks after CNY
- Majority of workforce back
- Production ramps up but may face backlogs
4-6 weeks after CNY
- Operations typically return to full capacity
- Logistics normalize, though congestion may persist
Impact of Chinese New Year on supply chain
Let’s examine the key impacts you can expect during the Chinese New Year period, which is also a time to wish for good fortune.
1. Manufacturing slowdown and production gaps
The most immediate impact will be factory shutdowns lasting 2-4 weeks across China. Production begins slowing down 3-4 weeks before CNY, with quality control becoming increasingly challenging as workers prepare for departure. Orders received late may face delays extending 4-6 weeks after CNY.
2. Reduced workforce
The holiday triggers a mass exodus of workers returning to their hometowns, followed by a staggered return post-celebration. Companies often face staff turnover during this period as some workers use the holiday to transition to new jobs. When operations resume, reduced productivity is common during the ramp-up period, particularly as new workers require training, which can temporarily affect production quality.
3. Logistics and shipping challenges
The pre-holiday period (December 2024-mid-January 2025) sees a dramatic surge in shipping as everyone is trying to get their goods out before the New Year shutdowns. It can create severe capacity constraints across supply chains. Container shortages become prevalent across major ports, driving freight rates and peak season surcharges. The same applies to air freight as well.
Documentation processing times extend significantly while ports face increased congestion from rushed shipments.
Customs clearance backlogs, delayed container returns, and disrupted shipping schedules can become common challenges.
→ Take a look at our complete guide on shipping from China to Australia
4. Cost implications
Transportation costs typically surge during the CNY period due to heightened demand across shipping modes. Ocean freight rates often increase by 20-30% in the weeks leading up to CNY, driven by limited vessel space and increased export volume, on which business relies. Air freight rates similarly spike as businesses rush to move critical inventory before the shutdown.
Expect additional costs from extended storage requirements at ports and warehouses, particularly if you’re building pre-CNY inventory buffers. Plan your budget to accommodate these predictable cost increases rather than paying premium rates for last-minute solutions.
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5. Supply chain ripple effects
Poor planning during CNY can trigger supply chain disruptions and potential quality issues. Without adequate preparation, global retailers may face inventory shortages, while manufacturers might struggle with raw material supplies. Companies operating on just-in-time production schedules are particularly vulnerable – inadequate stock buffers can halt production lines and create backorders.
But, these challenges are largely preventable. Businesses that accurately forecast demand, build appropriate inventory reserves and maintain clear communication with suppliers typically navigate the CNY period without significant disruption, especially with most factory workers returning from their hometowns . The key lies in viewing CNY not as an unavoidable obstacle but as a predictable business cycle requiring strategic planning.
6. Regional impact beyond China
Chinese New Year celebrations extend across multiple Asian countries, each observing their own traditional holidays during this period.
Vietnam celebrates Tet Holiday, coinciding with CNY, leading to a 1-2 week pause in manufacturing operations. Asian manufacturing hubs like Taiwan, Hong Kong, Singapore, and Malaysia also experience varying degrees of slowdown as workers celebrate with their families.
While these regional celebrations are shorter than China’s typical 2-4 week shutdown, their overlapping timing creates a broader pause in Asian manufacturing and logistics operations.
7. Transportation network stress
In the weeks leading up to CNY, transportation within China follows a planned transition phase that affects shipment timelines. The movement of goods from factories to ports requires additional lead time–what typically takes 2-3 days might extend to 5-7 days as facilities and transportation networks prepare for the Chinese New Year holiday period.
For your business, this means adjusting pickup schedules to align with the pre-CNY timeline. The most effective approach is coordinating with suppliers to schedule shipments by 3-4 weeks before CNY, ensuring your products reach ports well before the holiday celebrations begin. Early planning prevents potential delays that could impact your inventory arrival dates by weeks.
Mitigating CNY disruptions: Create your action plan
Successfully navigating the Chinese New Year shutdown requires strategic planning and proactive measures. Here’s your comprehensive action plan to minimize supply chain disruptions:
1. Strategic forecasting and inventory planning
Begin your CNY preparation by analyzing historical sales data, particularly Q1 performance, to create a comprehensive inventory strategy. Focus on both regular demand patterns and seasonal peaks through the second quarter. For ongoing inventory needs, implement a split-delivery approach – if you typically order 1,000 units for spring season delivery, schedule 500 units each in the two months preceding CNY to maintain consistent stock levels throughout the CNY period.
Build additional safety stock for two key categories: your top-selling items and seasonal products. For instance, seasonal merchandise must arrive 4-6 weeks before CNY to avoid missing crucial selling windows. Calculate your safety stock requirements by considering your production timelines and adding a 30-40% buffer to your average monthly sales.
This enhanced buffer protects against both CNY-related delays and unexpected demand spikes. Remember to factor in longer manufacturing lead times during the pre-CNY period – start placing orders 4-6 months in advance based on your suppliers’ cut-off dates and production schedules.
2. Place your orders in advance
Understanding manufacturing lead times is crucial for CNY planning. Start by requesting your suppliers’ CNY production calendar, particularly their order cut-off dates. Most suppliers begin accepting CNY-sensitive orders 4-6 months in advance, considering typical production times: 30-45 days for manufacturing, 15-20 days for quality checks and packaging, plus 7-10 days for inland transportation to ports.
For example, if you need products in the month following CNY, work backward:
- Final shipping deadline: 2-3 weeks before CNY
- Production completion: 4-6 weeks before CNY
- Order placement: 4-5 months before CNY
Remember to factor in complexity. While simple products might need just 30 days for production, custom or complex items could require 60-90 days. Communicate with your suppliers to understand their specific timelines and build your ordering schedule accordingly. This proactive approach helps ensure your goods are manufactured, inspected, and shipped before the holiday period begins.
3. Supplier communication and relationship building
Establish open communication channels with your suppliers now. Request their specific CNY shutdown schedule and discuss potential challenges. Ask critical questions like:
- What is their last production date before CNY?
- When will they resume their operations?
- What contingency plans do they have for urgent orders?
- How will they manage quality control during the transition period?
4. Quality management implementation
Institute a robust quality control process, especially for orders scheduled just before and after CNY. Consider:
- Implementing third-party inspections for pre-CNY shipments
- Requesting sample approvals earlier than usual
- Setting clear quality benchmarks with suppliers
- Establishing a protocol for handling defective products during the holiday period
5. Logistics planning
As CNY approaches, shipping demand surges and freight costs escalate significantly. Book your shipping arrangements early to secure both capacity and better rates. Coordinate closely with suppliers and shipping partners to establish clear timelines – aim to have all pre-CNY shipments at ports at least 10 days before sailing dates to avoid last-minute rush premiums.
Consider these strategic approaches when communicating with shipping companies :
- Book premium shipping services for critical inventory when costs are still reasonable rather than paying inflated last-minute rates
- Diversify risk by splitting shipments across multiple vessels and dates
- Consider alternative transportation routes, comparing costs and transit times
- Secure warehouse space in advance for early-arriving shipments, as storage facilities fill up quickly during peak CNY period
Most importantly, maintain regular communication with your logistics partners to understand their CNY schedules, cut-off dates, and rate changes. Early planning can help you avoid paying premium rates that typically increase by 20-30% during the pre-CNY rush.
6. Post-CNY preparations
Plan for the gradual production restart after the holiday. Expect reduced capacity as factories ramp up with potentially new workers. Schedule less urgent orders for 4-6 weeks after CNY when production capacity typically normalises. Keep additional safety stock to bridge any production gaps during this period.
7. Financial planning
The Chinese New Year period demands robust financial preparation to manage escalating costs. Due to limited vessel capacity and increased demand, expect shipping rates to surge by 20-30%.
Factor in potential air freight requirements for time-sensitive inventory – though costly, this might be necessary for maintaining stock levels. Early shipments mean additional warehouse space and extended storage periods, so calculate these holding costs into your budget.
Build a contingency fund of 15-20% above your normal operating costs to cover unexpected expenses like premium shipping rates, urgent deliveries, or quality inspection fees. Without this financial buffer, you might face difficult decisions between costly solutions or stockouts during the CNY period.
The year of the dragon and your supply chain: Final thoughts
Navigating the Chinese New Year requires strategic foresight and meticulous planning. While supply chain disruptions during CNY are inevitable, their impact on your business doesn’t have to be severe. Success lies in early preparation, starting at least six months before the holiday.
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Disclaimer: The information contained is general only and largely our views. Before acting on the information you should consider whether it is appropriate for you, in light of your objectives, financial situation or needs. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions, estimates, mentioned products/services and referenced material constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. WorldFirst shall not be responsible for any losses or damages arising from your reliance of such information.
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