Yesterday, 29 January 2025, marks the Chinese New Year, and this year marks the beginning of the Year of the Serpent, according to the Chinese zodiac. The Chinese New Year, also called the Lunar New Year or Spring Festival, is one of the biggest celebrations in China and other countries with a Chinese community. It marks the beginning of spring and is celebrated with many traditions, rituals and festivities.
Chinese New Year is determined by the lunar calendar and begins on the second new moon after the solstice of 21 December, meaning it falls between 21 January and 20 February every year. The festival often lasts 15 days and ends with the Lantern Festival. During this period, people say goodbye to the old year and welcome the new year.
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Consequences new year
Chinese New Year impacts different markets every year, from the container industry to manufacturing companies, and even the global supply chain. This impact is especially felt in the weeks leading up to, and during, the festival. Here are some key ways Chinese New Year affects markets:
Disruptions in production
- Closure of factories and businesses: During the period around Chinese New Year, many factories in China close for an extended period, often from two to three weeks, to allow workers to visit their families. This results in a temporary reduction in production capacity.
- Loss of working hours: As many employees take weeks off, production in industries such as electronics, textiles, toys and consumer goods can drop significantly. Companies often have to plan their production schedules ahead to compensate for these delays.
Disruptions in the global supply chain
- Delays in shipments: It is a well-known phenomenon that exports of goods from China, especially via sea freight, often slow down during Chinese New Year. Many container ports, warehouses and transport companies reduce their working hours or close temporarily, causing delays in the shipment of goods worldwide.
- Higher transport costs: The delays in shipments may lead to increased demand for other forms of transport, such as air freight, which increases the cost of shipments. This can affect global businesses that depend on timely delivery of goods.