Golden Week is well known in the logistics and supply chain, it happens every year in the first week of October and inevitably affects all local freight forwarders and their final customers' freight.
October 1st is China's National Day, a week of celebrations will be carried out across the country, and almost all companies will cease operations until October 7.
What to expect from Golden Week this year?
The pre-Golden Week peak usually starts in early September. Chinese domestic factories have accelerated the production process to ship products out of China on time. Therefore, restrictions on sea and land transportation have increased the chances of rolling goods and delayed deliveries.
If you want to deliver goods on time during the winter holidays this year and ensure that the goods arrive at their destinations timely, please follow our advice and book containers at least 3 to 4 weeks in advance, and include all necessary value-added services.
Prognosis of the three most severely affected regions during the Golden Week this year: North America, Asia-Pacific, and Northern Europe.
Strong and sustained demand affects trade between Asia and North America.
As global demand for ships has reached an unprecedented level, resulting in congestion on all large trade routes, global and local freight forwarders seem to be experiencing a similar situation to the congestion that occurred in Yantian Port in South China in the past few months.
However, the current empty container turnover rate is about 1.0% to 1.5%, which is a significant drop from 10.6% in the second quarter of 2020.
Due to extreme weather conditions, local challenges have increased - the strong typhoon season threatens the supply chain of China and neighboring countries.
While the overgrown shipping industry is struggling the pandemic, local freight forwarders still face another hurdle. Experts predict that from August to December, the Northwest Pacific and the South China Sea will be hit by 16 to 18 typhoons, and the port of Yantian has been suspended.
When the typhoon hit the coast, the ports of Yantian, Ningbo, and Shanghai were stopped, which caused ships to wait for three days.
Congestion in the Asia-Pacific region is also affecting European ports.
In the port of destination, especially in Antwerp, the waiting time for ships has been as long as 10 days. The latest congestion in Asia-Pacific and North America inevitably also affects major European ports. As the Golden Week approaching begins to have an impact on the European region, major hub ports may become congested.
When we are about to enter the last quarter of a difficult year, knowing the latest news will allow you to plan your shipments in the fourth quarter more actively and accurately.