How To Manage The Golden Week In China?
There is no doubt that China plays an instrumental role in the world’s economy and trade. It is by far one of the most important, popular and largest markets in the world. This significant Chinese status in the world put a lot of pressure on China to meet with the rest of the world’s expectations concerning logistical infrastructures to maintain a certain level of productivity and efficiency to keep the global supply chain oiled, running, and stable.
If you are doing or intending to do business in China or with a Chinese partner, you should be aware of the Golden week China. Below we included all the information you need to survive this golden week.
What Is The Golden Week In China?
The national golden week in China refers to the first week of October. During this week people celebrate the foundation of the new China. It lasts from the first of October to the 7th. During this week, most Chinese workers take a break from work and professional life resulting in crowded trains, buses, airports and shortage of workers.
The Impact of The Golden Week On The Supply Chain and Logistics
Most factories in China are closed in the golden week which leads to an interruption in the production and the whole supply chain. Vital services are reduced to the minimum and with operations running slowly, productivity and efficiency levels diminish and it becomes logistically impossible for buyers and sellers to get their products moving into and out of China.
The golden week also impacts shipping lines. Major shipping alliances announce a cut or a reduction in services during this week. They usually cancel some sailing operations due to slow and limited productivity.
Therefore, in order to avoid failure in getting your goods at the scheduled time, it is recommended that you avoid planning shipments from or to China during the golden week and the week after.
The Effect Of The Golden Week On Rates and Availability
Since the golden week in China takes place during the peak season, it is quite normal to expect a huge unplanned rise in shipping rates and the availability of carriers. The shortage of workers as well as soaring rates, high demand, low space, and equipment availability, make shipping during this week extremely expensive.
Importers and Exporters always try to secure the shipment before the golden week starts, consequently, demand dramatically increases. To cope with these rising demands, shipping lines impose new rates.
The Advantages Of The Golden Week In China
Just like anything else in the world, what is disadvantageous to some is advantageous to others. The golden week in China may be a nightmare for importers and exporters due to the low productivity levels and high shipping rates, it is an opportunity for many companies to make profit and actually benefit.
The golden week in China is one of the best opportunities for travel companies to make money. During this week, Chinese travel especially to neighboring countries such as Japan, Thailand, Hong Kong, and South Korea. Domestic consumption also rises to give a slight push to the Chinese economy during this operational shutdown in China.
How To Manage The Golden Week In China?
Managing the golden week in China is not an impossible mission. It only requires good planning and implementation. Below you will find the best tips to manage this unusual week perfectly:
- Choose the carrier wisely: Conducting research about the rate changes and surcharges announced by carriers is necessary to get the best rate during the golden week.
- Book the space for your shipment in advance: It is recommended that you book a space for your shipment 3 to 4 weeks before the golden week. Container space during the peak season is on high demand and you may not secure a space for your shipment if your freight forwarder does not contact the carrier at least 3 weeks in advance.
- Consider Different container types: Most importers and exporters prefer the 20-ft containers, thus these containers are usually the first to be booked and their rates increase. You should always have an alternative if you can’t find one or the price is not suitable for you.
The golden week in China is difficult for both importers and exporters. However, with good planning and effective management, you can actually benefit from it as consumption rises remarkably.