Impact of Lunar New Year on 2025 Supply Chain Operations

As the Lunar New Year approaches, it's crucial to anticipate and prepare for its significant effects on global trade, particularly concerning manufacturing outputs, port operations, and logistics. This year, the potential impacts may be further compounded by the possibility of labor disruptions on the U.S. East Coast due to unresolved port labor negotiations.

Key Dates:

• Lunar New Year: January 29, 2025
• Official Public Holidays in China: January 28 – February 4, 2025
• Lantern Festival (End of Festivities): February 12, 2025

Anticipated Impacts:

• Factory Shutdowns: Many Chinese factories are expected to cease operations for two to four weeks, starting as early as mid-January, with full production resuming by mid-February. This extended downtime can lead to delays in order fulfillment and production backlogs.
• Port Congestion: Increased shipping volumes before the holiday can cause congestion at major ports, leading to longer processing times and potential delays in both imports and exports.
• Labor Shortages: The mass migration of workers returning home for celebrations may result in reduced workforce availability, affecting manufacturing and logistics services.
• Exacerbated by Potential U.S. Labor Disruptions: Ongoing labor negotiations on the U.S. East Coast could lead to strikes or slowdowns at key ports. These disruptions may amplify delays for cargo routed through East Coast ports during the Lunar New Year period.

Kintetsu World Express is committed to supporting you through this period. Our team is ready to assist in developing tailored logistics solutions to minimize the impact of the Lunar New Year and any labor disruptions on your supply chain operations. Please reach out to your local KWE representative for assistance.

Sources: