The holiday season isn’t the only time for smart planning—Chinese New Year presents one of the biggest challenges for ecommerce supply chains. With factories across Asia shutting down for weeks, this annual pause disrupts production schedules and shipping timelines, forcing businesses to secure funding well in advance to keep operations running smoothly.

Leading ecommerce brands are staying ahead by leveraging Clearco's tailored solutions: Invoice Funding and Receipt Funding. With Invoice Funding, businesses can confidently place bulk inventory orders before factories close, ensuring they stay stocked through the holiday season. For those who’ve already paid their vendors, Receipt Funding provides quick access to cash—funding eligible receipts in as little as 24 hours. These solutions empower businesses to manage cash flow, maintain inventory levels, and avoid costly disruptions.

In this guide, you’ll learn how to navigate supply chain challenges during Chinese New Year by using Clearco’s Inventory and Receipt Funding programs. From funding inventory months in advance to unlocking cash flow for marketing and logistics, Clearco ensures you’re always ready to deliver for your customers—even during the most challenging times.

2025 Chinese New Year Logistics Schedule: Key Actions and Timeline

Source: Ascent Logistics

Mastering Lead Times: Strategic Planning for Seamless Supply Chains

Lead time is the journey your product takes from the factory to the warehouse shelf. Planning around these timelines makes all the difference in keeping your inventory steady during Chinese New Year shutdowns.

Manufacturing Production Timelines

Manufacturing time kicks off when your factory begins production. The duration can vary depending on the product's complexity and order size. Production capacity decreases steadily in the month before Chinese New Year, with many factories halting new orders entirely to complete existing work before closing.

Shipping and Transportation Considerations

Shipping times from China to the U.S. depend on origin and destination ports. Ocean freight from the Port of Shanghai to the Port of Long Beach in California typically takes 13-21 days, while shipments to Port Newark on the U.S. East Coast can range from 26-36 days. Port locations, shipping routes, and potential logistics complexities can influence overall transit times.

Customs clearance varies but generally takes 3-5 days with proper documentation. Missing or incorrect paperwork can stretch delays to weeks. Domestic transportation adds another 2-7 days, depending on your warehouse location.

Holiday Season Production Impacts

Holiday seasons can impact manufacturing timelines, potentially extending beyond standard production windows. Seasonal periods may create shifts in production capacity and shipping schedules, with factories adjusting their operations in anticipation of closures.

Here are some tips for preparing for success:

• Add 50% buffer time to normal lead times during Chinese New Year
• Factor in pre-holiday production slowdowns starting mid-January
• Schedule orders to arrive before factories begin closing
• Consider air freight for urgent items (though costs spike during holidays)
• Monitor supplier cutoff dates for pre-holiday orders

Map out your complete supply chain timeline, factoring in each stage. Lead times vary based on suppliers, products, and seasons.

How to Calculate Inventory Needs During Chinese New Year Factory Closures

Smart safety stock planning becomes crucial when factories shut down for Chinese New Year. Planning your buffer inventory helps prevent stockouts and keeps customers happy during extended production breaks.

Safety Stock Calculation Method

Safety stock calculation follows a simple formula: take your maximum daily orders multiplied by maximum lead time during CNY, then subtract your average daily orders multiplied by normal lead time. 

If your maximum daily orders are 50 units and maximum CNY lead time stretches to 90 days (50 x 90 = 4,500), while average daily orders are 30 units with normal 30-day lead time (30 x 30 = 900), your safety stock should be 3,600 units (4,500 - 900 = 3,600).

Production and Shipping Challenges

During peak seasons, production and shipping timelines can experience significant operational delays, while ocean freight rates face increases driven by Peak Season Surcharges, strong demand, and regional conditions in the Western Mediterranean and Far East.

Port congestion and severe weather delays add extra days or even weeks, and customs clearance might take twice as long during holiday periods.

Successful safety stock planning starts with understanding Chinese New Year's supply chain disruptions. Many businesses see shipping challenges and rate increases beginning in early January. Factor in potential minimal goods movement during holiday periods and the manufacturing slowdown that occurs before and during the Chinese New Year.

Storage and Inventory Considerations

Storage costs need careful consideration when increasing inventory levels. Warehouse space limitations and carrying costs can impact your safety stock strategy. Still, maintaining higher stock levels during Chinese New Year typically costs less than potential lost sales and disappointed customers from stockouts.

Most planning mistakes happen when companies underestimate pre-holiday production slowdowns or miss supplier order cutoff deadlines. Regional variations in closure dates also catch businesses off guard. Communicating clearly with suppliers about order deadlines and with customers about potential delays helps manage expectations.

Instead of treating Chinese New Year as a single date, view it as a three-month event. One month before for preparation, two weeks during the holiday, and up to six weeks after for production to return to normal capacity. Maintain smooth operations throughout the period by adjusting your safety stock calculations.

Smart Financing Solutions for Chinese New Year Inventory Planning

Small businesses drive 99.9% of U.S. commerce and employ over 61.7 million people. Yet according to the 2023 Small Business Optimism Index from the National Federation of Independent Business, many struggle with capital access—4% name financing as their top challenge, while 24% face higher rates on recent advances.

Funding shouldn't stand between you and smart inventory planning. Delaying orders due to cash flow concerns can lead to complications, especially during Chinese New Year factory shutdowns. Clearco’s Invoice Funding and Receipt Funding provide tailored solutions to help merchants prepare ahead and thrive during this critical period.

Flexible Funding for Inventory Orders

Clearco's Invoice Funding empowers businesses to place large inventory orders well in advance of factory shutdowns. By funding up to 100% of your inventory invoices, Clearco pays your suppliers directly, enabling you to secure stock without tying up your cash flow. This proactive funding approach ensures your shelves remain stocked during the holiday season and beyond.

For merchants who’ve already paid their suppliers, Clearco's Receipt Funding offers a practical solution to unlock cash flow quickly. Once approved, you can upload your paid receipts, and Clearco reimburses you in as little as 24 hours, providing flexibility to reinvest in critical business expenses.

Key Benefits of Invoice and Receipt Funding

• Funding Amounts: Access up to $1,000,000 USD for eligible invoices or receipts.
• No Collateral Required: Both solutions require no personal guarantees or equity dilution.
• Flexible Repayment Terms: Capped weekly payments make managing cash flow easier.
• Expanded Use: Use funds for inventory, marketing, logistics, and more.

Clearco’s Invoice and Receipt Funding solutions deliver non-dilutive working capital tailored to your business needs. By providing upfront funding for inventory or reimbursing eligible receipts, Clearco equips merchants to place larger orders, sustain cash flow, and outpace the competition with ease.

Preparing Your Ecommerce Business for Chinese New Year Success

Chinese New Year marks a significant pause in manufacturing, but with the right plan in place, your business can continue running smoothly. Start preparations at least three months ahead of factory shutdowns with these key steps:

1️⃣ Manage Lead Times Proactively
Conduct a thorough supply chain review to identify potential bottlenecks. Map out your timelines from production to delivery and consider adding buffer time to accommodate holiday-related delays.

2️⃣ Align Order Volumes with Demand
Base your inventory planning on historical data and projected sales growth. Calculate safety stock using maximum lead times and peak order rates to minimize the risk of stockouts.

3️⃣ Secure Funding for Smarter Inventory Decisions
Don’t let cash flow constraints limit your ability to stock up. Explore funding options like Clearco’s Receipt Funding program to ensure healthy inventory levels without financial strain.

With strategic planning, holiday disruptions can transform into opportunities. Businesses that prepare early often gain an edge, securing market share while competitors grapple with shortages. Visit Clear.co to explore funding solutions that help keep your shelves stocked and your customers satisfied during manufacturing pauses.