Burning firework sticks during Lunar New Year

Lunar New Year 2025: How to Minimize Supply Chain Disruptions

January 2025 - Prepare your business for Lunar New Year with proactive strategies to avoid delays.

The Ripple Effect of Lunar New Year on Supply Chains

Lunar New Year, one of the most significant holidays in Asia, brings widespread closures in factories and workforce absences that can disrupt supply chains across the globe. Importers must navigate increased demand, shipping delays, and reduced production capacity during this time. For businesses exporting goods from Asia, taking proactive steps is crucial to sustain smooth operations during this holiday season.

This article explores:

What is Lunar New Year
When is Lunar New Year 2025
Ways Lunar New Year May Impact Your Business
Key Shipping Tips to Prepare for Lunar New Year 2025

What is Lunar New Year?

While much of the world marks the solar New Year on January 1, those observing the lunar calendar in the Asia-Pacific region are gearing up for Lunar New Year on January 29, 2025. For businesses exporting goods from Asia, taking proactive steps to prepare for this holiday season is crucial.

Lunar New Year, also referred to as Chinese New Year, is a traditional celebration that marks the beginning of the new year according to the lunar calendar. It is one of the most significant holidays in many markets across Asia. As a time of reunion and renewal, Lunar New Year is celebrated with family gatherings and festive traditions. Given its cultural importance, many people take time off to celebrate at home.

When is Lunar New Year 2025?

Lunar New Year in 2025, the Year of the Snake, falls on Wednesday, January 29. Unlike the solar-based calendar, which begins on January 1, the date of Lunar New Year varies each year, typically falling between late January and February. In 2025, festivities will begin on the eve, January 28, and may last until February 12 in some markets.

How Will My Business Be Impacted by Lunar New Year?

If your business involves exporting goods from Asia, you will likely be impacted by the Lunar New Year holidays. Factories and businesses in markets that observe Lunar New Year typically close for a period of time, and operations may be reduced or halted for up to three weeks, depending on the market. This disruption can impact global logistics and supply chains. As a result, businesses often move shipments forward to avoid shipment delays, which can strain capacity and affect shipping timelines. As business continuity is important, here are a few key considerations when planning your shipments around the Lunar New Year holidays:

Production slowdowns: In the weeks leading up to Lunar New Year, warehouses and factories will gradually reduce production. This can lead to a demand surge in goods as businesses try to fulfill orders before the holiday. In some markets, many factories will cease operations entirely and may not fully resume production for up to several weeks after the holidays, making it take up to a month for businesses to reach pre-holiday production levels.
Factory and warehouse closures: Expect warehouse and factory closures from a few days to up to three weeks, as workers travel home to celebrate with their families.
Labor shortages and port disruptions: Labor shortages and limited port operations during this period can create additional bottlenecks. The reduced workforce may also result in more flight cancellations and blank sailings, leading to temporary fluctuations in shipping rates. As production ramps up after the holidays, allowing extra time for pre- and post-holiday shipments is essential to avoid delays.

By planning in advance and understanding these challenges, you can better navigate the impact of Lunar New Year on your business operations.

Key Shipping Tips to Prepare for Lunar New Year 2025

Proper planning to accommodate the one-to-several weeks pause surrounding Lunar New Year should begin well in advance, ideally at least a month before the holidays. Here are key strategies to ensure smooth shipment operations.

Book Your Shipments Early. To avoid disruptions during the Lunar New Year holidays, plan to book your shipments before January 29. Visit the UPS^® Forwarding Hub and enter your shipping details to check current rates and secure space before the holiday begins. As quotes are valid for seven days, you can lock in your rate quickly to avoid pre-holiday rate spikes.
Prioritize Time-Sensitive Goods. If some goods in your shipment are more urgent than others, consider splitting the shipment and using air freight to move these time-sensitive goods. This can help you to meet deadlines and ensure that critical products arrive on time.
Explore Alternative Transportation Modes. If you typically ship by ocean, consider switching to air freight. With faster transit time, air shipping can help you avoid delays and keep your supply chain moving smoothly during the holiday period.
Ensure Your Documents are Accurate. Accurate and complete shipping documentations is essential to prevent delays at customs. Make sure all paperwork is in order and communicate clearly with your suppliers, freight forwarders and all other stakeholders to minimize potential bottlenecks and ensure a smooth shipment process.
Have a Contingency Plan. Lunar New Year celebrations can lead to unexpected delays. It is crucial to have a backup plan in place to mitigate risks of disruptions or delays and ensure business continuity during this festive period.
Stay in Touch with Us. Communicate with your UPS sales professional to keep them informed about shipping needs in the first few months of the year. They can offer additional guidance to help you navigate the shipping complexities during Lunar New Year holidays and keep your shipments on track.

By preparing ahead of time and implementing these strategies, you can minimize the impact of Lunar Near Year on your supply chain and maintain smooth operations.