Golden Week, celebrated from 1-7 October 2024, is a significant Chinese holiday marking the National Day of the People's Republic of China, which commemorates its founding in 1949. Like the Lunar New Year, this period sees the closure of most businesses, including factories.
Golden Week has significant repercussions for ocean freight:
• Factory Closures: The shutdown of all Chinese factories heavily disrupts just-in-time supply chains and logistics operations.
• Carrier Omissions: Many ocean carriers skip sailings during this period, affecting shipping schedules.
• Pre-Golden Week Rush: Anticipating the holiday and the upcoming Christmas season, shipping volumes rise significantly 2-3 weeks before Golden Week.
The Pre-Golden Week Rush impacts logistics in several ways:
• Rising Demand: Factories and shippers expedite their operations to fulfil orders before the holiday.
• Christmas Volume Increase: The approach of the Christmas season further intensifies the rush.
• Logistics Strain: This surge creates greater demand for container vessels and heightened activity in freight forwarding, peaking 2-3 weeks before the holiday.
Additional pressures in 2024:
• Market-Driven Surge: Elevated shipping volumes are straining global supply chains, leading to equipment shortages and more frequent blank sailings.
• Port Congestion: Major ports in Asia are experiencing heightened congestion and delays.
Preparing for Golden Week:
• Book in Advance:
Ocean Freight: Secure space 3-4 weeks in advance
Air Freight: Book 1-2 weeks in advance
• Stay Flexible: Adjust transit times to manage cost fluctuations and respond to evolving conditions.
• Prioritise Shipments: Focus on moving the most critical shipments first to avoid potential delays.
• Consider Alternatives: Explore different routes and transportation modes to navigate possible disruptions.
The impact beyond China:
• Rising Demand: Neighbouring regions face increased pressure on their logistics services due to the backlog from China.
• Space and Equipment Shortages: These challenges impact the availability of transport and logistics services throughout the region.
With the Chinese Golden Week nearing, careful planning is vital to managing its impact on your supply chain. Acting early and collaborating closely with us will help prevent delays and minimise potential disruptions to your shipments.
The AWL Team are here to help you with any questions or concerns:
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