If you’re importing from China, you have probably heard a holiday called the Golden Week.
Just like Chinese New Year, there are a number of factors you need to about Golden Week.
Let’s dive right in.
- How Long Do Chinese Golden Week Celebrations Last?
- What Happens During The Chinese Golden Week?
- What Is The Difference Between The Chinese Lunar New Year And Golden Week?
- What Are The General Impacts Of Golden Week In China?
- How Will Golden Week Impact My Shipments From China?
- Does The Chinese Golden Week Influence Blank Sailing?
- Can The Golden Week Impact My Supply Chain Even If I Do Not Ship From China?
- Do Freight Rates Hike During The Golden Week In China?
- Does The Golden Week Celebrations Affect Contract Manufacturing In China?
- How Should I Prepare For Golden Week?
- Is Consolidated Shipping A Good Option Following The Chinese Golden Week?
- Do Things Get Better Immediately After Golden Week?
- How Do I Avoid The Freight Capacity Crunch During Golden Week?
- What Are The Golden Week Effects On E-Commerce Shipping From China?
- What Is The Best Incoterm When Shipping During The Golden Week Rush?
- What Are The Risks Of Ocean Freight Transport During Chinese Golden Week Rush?
- Is The Cost Of Cargo Insurance Affected By The Chinese Golden Week Celebrations?
- What Are Some Tips For Shipping During Golden Week?
- How Can A Freight Forwarder Help Mitigate The Effects Of Chinese Golden Week?
- What Is The Safest Way To Pay Chinese Suppliers During The Golden Week?
- How Does China Warehousing Work During The Chinese Golden Week?
- Are There Any Pros To The Chinese Golden Week?
- How Do I Handle Post Golden Week Backlog?
What Is Golden Week
It is a week that celebrates China’s national day. The Golden week allows the Chinese people to travel across the world as they enjoy this day.
It is given the name Golden week following the growth of tourism in China during this time, contributing to China’s economic growth.
How Long Do Chinese Golden Week Celebrations Last?
The Chinese Golden Week lasts for seven days. It is from the 1st of October to the 7th of the same month. The one-week celebrations were in reverence to the People’s Republic of China established in 1949.
What Happens During The Chinese Golden Week?
During this time, the workers of different manufacturing industries and businesses break for the seven days of the Golden Week.
It is when employees get to meet up with friends and family to have fun and bond more.
This means that any business transactions are put on a halt until the Golden Week is complete.
Shipments tend to delay, and businesses from other countries that rely on supply from China’s industries run short of stock during that week.
What Is The Difference Between The Chinese Lunar New Year And Golden Week?
The Chinese Lunar year allows Chinese people to celebrate the Chinese New Year in the Chinese calendar.
It takes place at the beginning of the year between January and February.
On the other hand, the Chinese golden week takes place on the first seven days of October.
The Chinese Lunar year celebrates a new year in the Chinese calendar. While the Golden week celebrations celebrate the Peoples Republic of China attained in 1964.
The two celebrations also differ on the time durations for celebrations.
The Chinese New year celebrations last for two weeks, while the Golden week celebrations occur within a week.
What Are The General Impacts Of Golden Week In China?
The golden week has had tremendous effects on business in China and worldwide following the closure of businesses and china factories.
The government as well observes the Golden week celebrations and thus takes a break from its operations.
This translates to processes that require government clearance certifications being put on a halt until the week comes to an end.
Commercial products are also suspended from being imported or exported following the increased flow of incoming and outgoing tourists.
Ports are also on schedule to run but with limited staff, as most of them have departed for the golden week events.
The Golden week impacts can trickle down to affecting the global business environment. It is because China acts as the leading global supplier for various businesses across the world.
Since various Asian countries observe the golden week, trade operations significantly decline since all staff members are on holiday.
How Will Golden Week Impact My Shipments From China?
Shipments that happen days before the golden week of China are exposed to expensive rates for air freights and ship freights.
There is also increased demand for shipments from China hence the cause of the high rates charged for shipping.
This is because of the increased demand for stocks from business persons before the commencement of the golden week.
It helps boost their sales once factories shut down in China during the golden week.
Does The Chinese Golden Week Influence Blank Sailing?
However, blank sailing happens after the events of the golden week due to bulk demand for goods following the closed factories.
Can The Golden Week Impact My Supply Chain Even If I Do Not Ship From China?
The Golden week has resulted in the increased scarcity of capacity for shipping, especially to shipping services within the Asia-pacific region.
Other Asian countries fully observe the Golden week celebrations.
Asian countries serve as the other leading supplier of products and services to other countries.
Therefore, if you are not shipping from china, you are most likely shipping from these Asian countries.
It affects shipping even though it is directly not from China.
Additionally, shipping containers become scarce and unavailable all through from August to September across the Asian-Pacific countries.
Do Freight Rates Hike During The Golden Week In China?
Yes, there is increased demand for higher space for shipping; all shipping lines resort to hike their price pre and post the golden week events.
The golden week also causes the truck services to increase their prices.
Generally, shipping during the golden week and days before and after the golden week is very costly due to increased freight rates.
Does The Golden Week Celebrations Affect Contract Manufacturing In China?
Yes, China manufacturers also observe the golden week celebrations. As a result, they will close their dealings and get back once the celebrations are over.
The golden week celebrations affect China manufacturers and halt all businesses and factory dealings to observe the week.
Golden Week Celebration
How Should I Prepare For Golden Week?
The golden week presents many inconveniences, especially to clients expecting shipments from China and neighboring Asian countries.
However, as a business owner, there are five ways in which you can prepare yourself to help evade the skirmishes of the golden week.
First of all, you need to have a freight forwarder in place. Freight forwarders are convenient in terms of getting in touch with the intended supplier.
Additionally, freight forwarders also have a transparent background on what happens during the Golden Week.
Freight forwarders help advise you on the best time to conduct sales and highlight the best means of transport during this time.
They also get to assist in presenting goods that are urgent to clients on time.
Secondly, arrange to book your shipments earlier to the golden week events. It is advisable that if you are using air freight to make bookings for shipment two weeks earlier.
If you are shipping by ocean, make preparations one month before the golden week. This helps your goods avoid the congestion caused during shipping.
Earlier bookings also allow for your goods to arrive on time.
Another way to adequately prepare for shipments for Golden week is opting for FCL shipping rather than LCL shipments. Most ports operate on temporary staff, and LCL requires offloading at various stop points.
This creates inconveniences since there are no workers to make the offloads; hence the goods will delay at the ports until the staff is back.
It is best to use FCL shipments to avoid these hurdles as they require less interference with the cargo hence easy to ship during the Golden Week.
Another way to prepare for the Golden week is to carefully select the best and convenient means of transport. Air transport might be the fastest. However, congestion at the airport can result in your cargo getting rolled.
This is because transport means that offer the shortest time for travel is prone to overbookings.
A multimodal means of transport that incorporates various means of transport is best for use for urgently needed goods.
Moreover, to avoid incurring chassis and trucking fees, PTL offers the best solution. Partial Truck Load does not have to make stopovers at trucking terminals.
Thus there are no trucking fees attached.
There are also incidences of chassis shortages which prompts trucking companies to incur chassis split fees to avail the chassis at the port.
These costs are avoidable with the option of using the partial truckload option.
Is Consolidated Shipping A Good Option Following The Chinese Golden Week?
No. It is because consolidated shipping calls for the need to make various stops at terminals to unload cargo.
It creates inconvenience since time is of the essence following the massive demand for shipments during this season.
Opting for the FCL shipping method is the most convenient and less time-consuming for shipping around the golden week in China.
Do Things Get Better Immediately After Golden Week?
No, it takes quite some time before things get back to normal after the Golden Week.
Factories get back to deal with the pre-dominant backlog at their firms. Cases of shipments getting rolled at, canceled, and prone to blank sailing are very rampant and need to be addressed as well.
Therefore, there is still much backlog to deal with before getting back to normal after the golden week.
How Do I Avoid The Freight Capacity Crunch During Golden Week?
Freight capacity crunch stands out as the most common problem experienced during the Golden Week. Therefore, to avoid inconveniences such as cargo rolling, consider the following.
Opt for the means of transport that have the longest transit time. During Golden week, most cargoes tend to book shipment methods with the fastest transit times.
This results in overbooking, which increases the chances of cargo getting rolled. On the other hand, slower means are less likely to expose shipments to getting rolled, and there is less overcrowding.
Another significant way to avoid a capacity crunch for shipments that travel by land is to include an alternative to the regular discharge port.
It allows the cargo to opt for alternatives that are not congested, especially during the Golden Week. Chances of even falling for a cheaper rate are higher with this shipping model.
What Are The Golden Week Effects On E-Commerce Shipping From China?
The e-commerce sector thrives primarily during this season. This is because most people want to enjoy their holidays with family and friends.
Most orders are thus made through online platforms since most of the businesses are closed during the golden week season.
Generally, spending on e-commerce is usually on a large scale during the golden week in China.
Here are more information about e-commerce shipping from China.
What Is The Best Incoterm When Shipping During The Golden Week Rush?
Incoterms for shipping during the Chinese golden week are dependent on the space to which the cargo occupy. Additionally, it is dependent on ports of origin and their destination.
There are numerous incoterms, including FCA, CPT, CIP, DAT, DAP, etc. They are classified into various groups, each defining the terms for the incoterm.
Freight forwarders come in handy in helping to choose the best incoterm for your cargo, especially during the golden week.
It is essential to consult with them and agree on the best incoterm during this season as they all have different properties.
What Are The Risks Of Ocean Freight Transport During Chinese Golden Week Rush?
The significant risk of cargo that opts for ocean freight during this season is the risk of being rolled over.
This means that the cargo might miss being on board the shipping vessels.
This is majorly caused by the overwhelming capacity caused by the high bookings by various clients.
There are also risks of increased ocean freight rates due to the increased bookings.
Is The Cost Of Cargo Insurance Affected By The Chinese Golden Week Celebrations?
If your cargo is not insured and is doing so during the peak season, prices might differ slightly, or sometimes they do not change.
The main aim of insurance covers is to facilitate compensation for your cargo in theft or damage.
Cargo is highly susceptible to damage or theft, especially during the peak season, such as the golden week in China.
LCL shipments are most prone to theft because of the various handlings at different terminals.
It is advisable to thus acquire an insurance cover for your cargo to evade such misfortunes falling on your cargo.
What Are Some Tips For Shipping During Golden Week?
Below are some of the ways that shippers can create convenience during the Golden Week.
This is achieved by making early bookings for freight. Thus for air freight, a week earlier and for ocean freight, a month earlier is advisable.
Also, avoid using LCL shipping during the golden week. Majorly use the FCL shipping method.
Avoid shipping containers that are likely to get rolled. For example, the 45HC containers are likely to be rolled due to their large size.
Lastly, avoid making bookings for multiple containers under a single bill of lading.
Account For Extra Fees
Shipping during the golden week is bound to attract various types of fee charges. This includes a fee for trucks as they wait for the cargo at the port.
There is also a split chassis fee imposed on the chassis as they are transported to the port. Moreover, if you are considering using the air freight and ocean freights, be ready for extra charges,
Airfreight and ocean freight rates increase following the demand for goods during the golden week.
Ensure That All The Required Documents Are In Line With Customs Requirements For Shipping
The last thing you would wish for during the Golden week is for your cargo not to be authorized due to missing information.
These include HTS codes, commercial invoices Cis, and other relevant documentation and information for your shipment.
How Can A Freight Forwarder Help Mitigate The Effects Of Chinese Golden Week?
Freight forwarders can be of help during such times of acquiring shipments from China.
As a result, freight forwarders familiarize themselves with other means for transportation to which they can use to aid shipments during this time.
They further make price comparisons for these modes of transport and offer tracking services to clients from shipping to the arrival of the shipments.
Freight forwarders also keep clients in the know following shipping pre and Golden post-week.
Freight forwarders also make sure that your cargo reaches the stipulated destination despite constraints of temporary staff at the vendors’ sites. It is common for most staff to switch jobs during the Golden week events.
What Is The Safest Way To Pay Chinese Suppliers During The Golden Week?
Various suppliers have different paying methods that every client adapts to.
Freight forwarders understand the various payment methods and advise accordingly on how to pay.
In terms of safety, the suppliers have adapted the safe methods for which to make payments to.
Therefore, as a client, it is best to familiarize yourself with the stipulated payment methods.
Lastly, it is advisable to make payments before the golden week. It assures the possibility of your shipment arriving on time.
Moreover, paying suppliers during the golden week is risky as most suppliers might adapt to new businesses.
It results in long and strenuous processes of recovering back the money.
The safest way to therefore pay suppliers is through making early bookings before the golden week. If the golden week catches up with you, it is best to wait for the manufacturers to start their operations again.
This way serves as an assurance for getting the goods you have paid for.
How Does China Warehousing Work During The Chinese Golden Week?
Warehousing China staff during this Chinese special week are also on a break as they celebrate the golden week.
Thus most warehouses are closed down during the week. A few maintenance staff who are on shifts help to keep tabs on the warehouses.
However, typically, all warehouses are closed for business during the Chinese new week season.
Are There Any Pros To The Chinese Golden Week?
The Chinese Golden week does not entirely result in negative influences. It also presents a business opportunity for the decorative and hospitality Industry.
Vacation travelers in Chinese ought to be among the booming businesses in Chinese during this time. Most people are on travel to meet up with friends and relatives and have a good time.
There is also a significant sale on luxury items and decorative items such as the lanterns at fireworks that light up during the occasions.
The Chinese golden week records an increase in domestic shopping among Chinese. Therefore, any business that avails its products in the Chinese market during the Golden week makes massive profits.
How Do I Handle Post Golden Week Backlog?
Backlog, especially during the post-Golden week of China, can be very frustrating, especially for business owners who urgently require their cargo.
However, things can be hastened for those who have urgent shipments. Freight forwarders come in handy in such situations.
Making communications to vendors as well as freight forwarders concerning the urgency of the cargo is advisable.
Provide all the necessary information and logistics concerning the cargo and let the freight forwarder help you get your cargo on time.
For all your freight forwarding services, contact BanSar now.