In China, Golden Week is a week-long national holiday. It commences on October 1st commemorating the founding of the People's Republic of China. Golden Week kicks off a 7-day festival, including parades, ceremonies, and other displays.
The seven days of celebrations, however, indicate a typically disruptive time for experienced shippers. This period impacts manufacturing, import, export, and trade generally.
Golden Week is usually celebrated from October 1-7. However, sometimes the holiday will be longer to include the “Mid-Autumn Festival”, which is based on the Lunar calendar. Factories will be closed for the holiday week.
Impacts of the Golden Week on trade and shipping
As we approach October 1, and Chinese factories will be closed for a week, importers rush to finish production and ship goods from China before the holiday's closures. This generally results in a rapid increase in demand, and space capacity becomes limited as carriers seek Peak Season Surcharges (PSS). This results in a tighter capacity and high prices for both ocean freight and air freight. Carriers will be more overbooked than usual, which will likely result in rolling cargo. That is shipments in transit at such a busy time are often left off their scheduled sailings due to overbooking.
Likewise, trucking services will be in higher demand, so you may also see higher prices for trucking at the origin. We’ll also witness blank sailings immediately after Golden Week. Because factories will be closed over Golden Week, carriers will plan blank sailings to maximize vessel use.
The customs service will continue to operate, but with dramatically reduced resources. Commercial items will take a back seat in terms of customs due to a large number of tourists and travelers visiting China for the holidays.
Port facilities will also run with only a skeleton staff to handle freight throughput. Because of China's prominence as a manufacturing hub and other Asian nations' participation in Golden Week, the event often results in a drop in trading across the Far East. It also has an impact on global trade to some level.
How to prepare for the Golden Week?
Are you new to doing business with Chinese manufacturers? Are you a new importer or exporter? There are no particular secrets; all it takes is planning and preparation. In either case, we will guide you here on planning your shipping to avoid Golden Week worries.
Perhaps you're thinking, "It won't be an issue if I avoid booking shipments during Golden Week." However, staying out of difficulties is not so simple, since the vacation has a ripple effect in the shipping sector. Check below the ultimate 10 tips for efficient preparation for the Golden Week.
Tip#1: If your company is involved in exporting or importing from the world's greatest supplier of manufactured goods, make a huge red circle on your calendar and order enough inventory for the entire month of October, if possible.
Tip#2: If you’re shipping via ocean freight and want your cargo to arrive in time for the winter holidays, please note that you will need to book your shipments prior to Golden Week.
Tip #3: Moreover, you need to determine which batch of shipment is the most urgent and plan accordingly. Most importantly, you should conduct thorough research on the routes and capacity of the carriers.
Tip #4: You also have to stay informed of all possible announcements of blank sailings, freight cancellations, rate hikes, and surcharges.
Tip #5: Consider opting for 40 ft containers as 20 ft containers will be in high demand. Although you might not require the extra space, the lower demand for the 40-ft could result in better rates and availability.
Tip #6: If you are in need of open-top containers, reefers, and flat racks should start making arrangements earlier than the timeframe we recommended.
Tip #7: Lastly, you need to forecast your upcoming shipping requirements and start preparing accordingly. Also, remember to keep your customers informed about the situation and changes in plans to avoid any possible miscommunication.
Tip #8: If none of the above tips work out for your particular requirement then consider the option of air freight.
Tip #9: If you find you can’t avoid shipping close to the holidays, here are ideas that will help you to avoid Golden Week Woes:
- Consider those with extended quoted transit time while seeking a sea freight service. Because most shippers desire to reduce transit time, slower services have less overbooking, therefore your cargo is less likely to be rolled if you use such services.
- If your cargo usually travels overland following discharge, you may want to extend your search for sailings (or flights if you use air freight). Consider alternatives to your usual point of discharge. This gives you a lot more possibilities at a time when capacity is limited. You could even discover a better freight rate than you would on your regular route.
- Raise Golden Week Awareness Among Your Customers. , it may be worthwhile to inform your consumers about Golden Week and the potential for shipment interruptions. If customers are aware that early October is a critical period for supply availability, they may be persuaded to change their purchasing habits. This, in turn, may relieve inventory pressure and assist you to avoid shipping during the Golden Week closure.
Tip #10: Be flexible,
- Think of a solution that has a slightly longer transit time. Your cargo is less likely to roll since these solutions are less likely to be overbooked.
- Choose a different port of discharge if your cargo is going inland; this will give you additional alternatives when selecting a sailing.
- Take into account selecting the trans-load option after discharge at the point of destination if your goods are travelling inland
- There's always air shipping if you are on a tight schedule but take into account that it costs higher and limited availability are projected to continue.
Plan ahead and work closely with your team of Vervo Middle East
- Share your forecast with us as soon as you can.
- Book shipments ahead of time.
- Let us know which shipments are the most urgent.
- Consistent past performance matters, if the historical consistency is not present, carriers will be more reluctant to support space during times of space capacity tightness.
After The Golden Week
Things don't immediately get better in the weeks following Golden Week. Factory closures over the Holiday season result in a sharp decrease in the number of items available for delivery. As a result, in the case of ocean freight, carriers may cancel sailings to avoid underutilization of their vessels. Rolling a cancelled, or blank sailing can leave your shipment in limbo. Here comes the role of a reliable logistics partner to help you make pre- and post-Golden Week preparations. When you need a broad range of shipping alternatives and the freedom to pick between ocean freight and air freight during this crucial time, why not use Vervo Middle East Free Quotes? We cover all important trade routes to and from China and the UAE, and you can get a professional quote with the most convenient solution from an expert in an hour. Request a Golden Week shipping quote here!