The Lunar New Year (LNY) is one of the most significant holidays in Asia, and its impact on global supply chains is profound. With factories closing for up to two weeks and ripple effects lasting up to six weeks, businesses that rely on Asian sourcing need to plan ahead to avoid costly delays.
Why It Matters
During LNY, production slows dramatically as workers return home, ports experience congestion, and carriers implement blank sailings. This creates a surge in demand for shipping space before the holiday and a backlog afterward, driving freight rates and extending transit times.
Key Risks
- Factory Shutdowns: Manufacturing capacity drops sharply from mid-January.
- Port Congestion: Increased vessel queuing and container shortages.
- Freight Rate Spikes: Costs rise significantly during the pre-holiday rush.
- Extended Lead Times: Delays can persist well into March.
How to Stay Ahead
- Book Early: Secure space before the “Red Zone” (Jan 20–26) when demand peaks.
- Build Inventory Buffers: Stock up on critical goods to cover the holiday period.
- Diversify Routes: Consider alternative ports or air freight for urgent shipments.
- Communicate with Partners: Align forecasts and timelines with suppliers and carriers.
- Plan for Post-Holiday Recovery: Expect slower production ramp-up and quality checks.
Our Commitment
At Meachers Global Logistics, we’re here to help you navigate these seasonal challenges. From proactive booking strategies to alternative routing solutions, we’ll work with you to keep your supply chain resilient and your business moving.
Contact us today to discuss your Lunar New Year logistics strategy and secure your supply chain against seasonal disruptions.
