China’s Golden Week is a week-long holiday that actually occurs twice a year, in what are known as the golden weeks. As importers rush to move their cargo out of China before the holidays, capacity is expected to be limited and rates are expected to be quoted high for both ocean and air freight, due to the fact that most factory, warehouse and office workers take their vacations at the same time so that businesses across the country can shut down completely.

The first of these weeks, known as the Chinese Lunar New Year Golden Week, takes place early in the year, in January/February, giving people time to celebrate the Chinese New Year.

The second Golden Week, known as the National Day Golden Week, will be held in 2019 from October 1 to October 7. Factories will close for a full week, with operations resuming on Tuesday, October 8.

How does China’s Golden Week impact international logistics?

Ocean and air freight rates will rise as demand for Chinese exports increases, with importers trying to get their cargo out of the country before factories fully cease operations. This will further constrain space that is already under pressure due to the peak season.

Trucking services at origin are also expected to experience high demand, so inland transportation rates will naturally be quoted higher than usual.

An unavoidable effect of China’s Golden Week will be the blank sailings announced by carriers immediately after Golden Week in order to optimize vessel utilization. Because factories will be closed during this week-long holiday, blank sailings are inevitable until operations return to their usual pace and new bookings and departures can be made.

How can importers prepare for the Golden Weeks?

Whether it is for the winter holidays or simply to keep your inventory stocked, as an importer, your main concern is that your cargo arrives on time if you are shipping by sea. During the Chinese golden weeks, we recommend booking your shipments at least 2 weeks before the holidays, planning ahead and working closely with your logistics provider to avoid unnecessary delays.

• Book 1 week before Golden Week if you are shipping by air.
• Book 2-3 weeks before Golden Week if you are shipping by sea
• Share your plans and  needs with your logistics partner as early as possible.
• Define which shipments are the most urgent for your business and communicate this to your logistics partner so the necessary planning can be done.

Consider alternative options.

• Services with longer transit times are less likely to be overbooked; consider a slightly longer transit so your cargo is not caught up in bottlenecks and delays.
• An alternative discharge port could be a good option (if your cargo is moving inland), as this will give you more routing and port options to choose from.
• Consider air shipments if you are in a hurry. Keep in mind that air freight rates are considerably higher compared to ocean shipments, especially during the peak season, when tight capacity has pushed prices above the usual range.

Source: Shiplilly