As the Year of the Horse approaches, logistics professionals worldwide are preparing for one of the most challenging and interesting periods in global trade: Chinese New Year. Celebrated across China and East Asia, the Lunar New Year is a time of cultural celebration and a season to be prepared in advance in supply chains.
When Is Chinese New Year 2026?
Chinese New Year officially begins on Tuesday, February 17, with an eight-day public holiday running from February 16 to 23. However, possible impacts to logistics typically start weeks earlier, as many factories might begin scaling down operations in late January and truck drivers force return earlier to their home provinces for the holidays. Full production is expected to resume gradually after the Lantern Festival, the 15th day of the new Lunar year in early March, making early planning essential for supply chain stability.
How Chinese New Year Affects Global Logistics
The effects of Chinese New Year ripple across the entire supply chain:
- Factory Shutdowns: Production slows 2–3 weeks before the holiday, leading to delays in order fulfillment and inventory shortages.
- Freight Rate Spikes: Pre-holiday demand drives up transportation costs, with peak season surcharges across Sea, Air and Intermodal Freight.
- Port Congestion: Major ports like Shanghai and Shenzhen face bottlenecks, while smaller ports such as Xiamen offer alternatives.
- Labour Shortages: Workforce availability drops sharply, affecting warehousing, customs clearance and last-mile delivery.
- Air Freight Disruptions: Reduced cargo capacity and slower customs processing lead to higher costs and longer transit times.
Industries most affected include electronics, textiles, toys and automotive, all of which rely heavily on Chinese manufacturing and export.
Strategies to Mitigate Disruption
To navigate the challenges of Chinese New Year 2026, businesses should consider:
- Early Planning: Finalize orders and shipping schedules by the end of 2025.
- Pre-book Freight Space: Secure container slots early or opt for LCL (Less-than-Container Load) shipments to reduce risk.
- Inventory Management: Stockpile critical items based on previous demand to avoid shortages.
- Diversify Routes and Modes: Use Intermodal and Air Freight options and route through less congested ports.
- Budget for Contingencies: Prepare for unexpected costs such as demurrage, detention, or cargo damage.
Communication is key: aligning with suppliers, carriers and logistics partners ensures smoother operations during this high-risk period.
Trade Tensions and the Road Ahead
Chinese New Year 2026 arrives during a period of cautious optimism in global trade. After months of escalating tariffs between the United States and China, a bilateral agreement signed in November 2025 has introduced temporary relief. China has suspended its retaliatory tariffs and lifted export controls on rare earths, while the United States has delayed further tariff increases until late 2026. The baseline reciprocal tariff of 10% on Chinese goods remains in effect and additional measures have been paused.
Despite these developments, the effects of the trade war are still visible. Container bookings between China and the United States remain significantly lower than in previous years and major ports continue to report reduced vessel traffic. Retailers and manufacturers are approaching the Chinese New Year season with caution, scaling back orders and adjusting inventory strategies.
For logistics professionals, this means that while port congestion may ease, the overall environment remains fragile and unpredictable. The usual increase in deliveries before the holidays could be dampened, and renewed tensions could quickly undo recent progress.
Businesses should plan early, diversify sourcing and monitor trade developments closely as the Year of the Fire Horse begins.
