Chinese Golden Week is approaching – What should shippers expect?
China is preparing for its Annual Golden Week Holiday that runs from the 1st through to the 7th October and most businesses and factories will shut their doors to celebrate the holiday.
The Golden Week is a 7-day national holiday in China that celebrates the establishment of the People’s Republic of China and with China being one of the world’s most important economies and many importers and exporters relying on this trade lane, the extended shutdown has the ability to cause some headaches throughout many supply chains.
Airports and seaports will keep operating but with reduced manpower due to low production volume coming from the mostly closed from factories. Normally, government institutions such as customs offices will be closed from October 1 to October 3, 2024. Historically for shippers, the biggest impact comes in the following areas during Golden Week:
- Increased Freight Costs: With businesses racing to meet deadlines before the holiday shutdown, freight costs can spike by as much as 50% on certain trade lanes
- Port Congestion: Some Chinese ports can be overwhelmed by the volume of goods being shipped out, often causing delays that take weeks to clear, long after the Holiday period has finished.
- Disruptions to Production: With many Chinese factories closed during Golden Week, halting the production of goods. This can create delays in receiving critical supplies and components, affecting manufacturing schedules.
Airfreight Options
To ensure shippers don’t get caught without product, it is important to diversify your supply chains and look at airfreight options to meet critical deadlines when required.
It is expected that airfreight volumes will grow over the next few weeks with ongoing disruption to most Seafreight trade ex-China and South East Asia likely as a result of the holidays. We have a range of airfreight services available to meet your needs so please reach out early to look at options and avoid being caught short over the Golden Week period.
For rates and schedules, please reach out to your Key Account Manager at Harders.