Act now to prepare your business over the impact of Chinese Golden Week as factories shut down for a week. Learn more.
As the year moves forward, shippers across the globe are starting to prepare for the Chinese Golden Week, which occurs during the first week of October. Chinese National Day, commemorating the 1949 founding of the People’s Republic of China, is celebrated on October 1, but its importance is honored through a seven-day holiday known as “Golden Week.” During this time, all factories and operations cease in respect for the holiday. In addition, carriers have a tendency to charge higher trucking rates in advance of Golden Week, says Global Trade Magazine, so time becomes an even more important factor. Since e-commerce never sleeps, shippers and carriers must work diligently to ensure a hassle-free, smooth transition before and throughout the period.
Shippers and the Impact of Chinese Golden Week
The impact of Golden Week is more than just seven days. For carriers and factories, operations will not resume until Monday, October 9, 2019. Although most often, the country resumes operations on the weekends surrounding Golden Week, it is equally important that all shippers and carriers know what to expect.
Final sailings will take place up until the beginning of Golden Week. This means midnight shipments on the evening of September 30 may be available, and unfortunately, the rush to continue shipping and serving customers while factors fall silent requires an advanced strategy.
Shippers cannot wait until the last day or even week before Golden Week begins to prepare for observation. All carriers will be booked solid as the holiday approaches, and those that do not secure capacity will face uncertainty and a delay of at least nine days.
This could easily push your customers toward Amazon and its omnipotence. Once again, preparation is everything to success. Paired with spot rates expected to climb 1-4.8%, as in recent years, during the period, explains the Journal of Commerce, shippers must act immediately.
How to Ensure a Smooth, Hassle-Free Cargo Management Throughout the Week.
Chinese Golden Week is nothing new, and shippers have always taken steps to prepare. However, advancements in technology have reshaped the way in which shippers plan for the holiday. Instead of relying on outdated, labor-intensive processes to contact carriers, providing shipment data, waiting on a quote, speaking with a freight forwarder in-person, reviewing available options and completing endless reams of paperwork, shippers can streamline the entire process with technology. In fact, shippers’ use of technology falls nicely within our five recommendations to ensure a disruption-free holiday, which includes:
- Use data to generate accurate, timely forecasts.
- Ensure clear, concise communications with suppliers to plan for cargo readiness.
- Complete bookings as soon as possible, well-before Chinese Golden Week begins.
- Automate the booking process with a digital freight forwarding platform/partner.
- Let technology do the heavy lifting and managing exceptions.
Act Now to Maintain Consistency Throughout the Holidays
Consistency in shipping is key to success, and the Chinese Golden Week represents another risk importers and exporters face. While China prepares for this joyous celebration, carriers and shippers alike must begin working together with extreme resolve. Spot rates will increase, and carriers will want to divert empty vessels for sailing in other areas. It is a risk, but shippers that take the time to work together and in advance can find success and a disruption-free operation.
Choose Shypple to help you prepare for any change in routine operations. Through technology and digital freight forwarding partnerships, we can all work more efficiently, effectively and seamlessly, regardless of what holidays or unexpected disruptions may arise. Get started now by visiting Shypple online.