The Golden week is the People’s Republic of China’s most extended holiday, and it's running from 1 to 7 October 2023. Golden Week is the biggest week for tourism in China when people have a week off to reunite with families and take trips. Many tourist attractions raise tickets prices, prices of flights and hotel rooms soar during National Day Golden Week.
What is the impact of the Golden Week in Logistics
Securing reliable, on-time freight shipments and deliveries during peak holidays is especially critical and challenging during this time of the year in Asia.
China is one of the world's largest and most significant markets, and there is immense pressure to maintain productivity and supply chain efficiency throughout the year. During Golden Week, however, the biggest exporter in the world takes a seven-day break to celebrate its National Day, resulting in a reduced number of employees working at China's various ports and terminals. Factories will also face minimised capacity as workers leave for this public holiday, leading to a decrease in the production rate during this period. To ensure shipments reach their destinations on time with better cost efficiency, it is essential to plan supply chain logistics well in advance to allow for enough lead time.
High demand and limited space available
With the pre-Golden Week rush usually starting three to four weeks before the main event, many companies tend to speed up their production process to transport goods in and out of China before the public holiday. The higher demand for transportation puts added pressure on ocean freight, inland transportation, air freight, and other logistics services, causing an increased likelihood of cargo delays.
Like a proverbial game of musical chairs, companies that haven’t planned ahead or aren’t working with a logistical service provider that can offer multiple solutions, may find that when the music stops, in this case when Golden Week hits, they won’t have cargo spot. The above-mentioned factors lead to an overall gridlock for many companies.
The impact after the Golden Week
In the week (9-15 Oct) right after Chinese Golden Week, carriers have announced a record-high cut in earlier announced capacity, as they seek to manage the fall in demand with that of fewer ships. From Asia to Europe, 41% is blanked (8 sailings) – equally amongst the alliances. From Asia to North America West Coast, 50% in blanked (19 sailings) – with Ocean Alliance responsible for half of it. Expect more on the horizon, as overcapacity reigns.
Our Bertling Logistics office in China will be closed September 29th to October 6th.
Should you require any guidance or have inquiries concerning shipments to and from China during Golden Week, we are here to provide the necessary information and assistance. Please do not hesitate to reach out to us.