Golden Week shipping presents an opportunity for businesses to optimize their logistics, even as Chinese factories close down for the holidays. While this period can be challenging, there are effective strategies to minimize delays and save money. Read this blog to learn how you can sail through Golden Week without interruptions.
National Day Golden Week in China has a massive impact on global shipping activities, as production comes to a temporary halt and the workforce at ports and terminals decreases dramatically.
Companies rush to complete production ahead of the holiday, further straining supply chains and leading to spikes in freight rates, as well as hefty port charges for shippers.
If Golden Week usually disrupts your business with last-minute container shortages and hefty port charges when your shipments are delayed, you’re not alone.
Luckily Container xChange—the largest global container marketplace—can support you to navigate Golden Week with ease. With 100,000+ containers available in 2,500+ locations, and 1,700+ trusted partners just waiting to work with you, getting your hands on a container is no longer a hassle.
Check out just how easy it’s to find the containers you need in just a few seconds with our public search below.
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What is National Day Golden Week in China?
National Day in China commemorates the founding of the People’s Republic of China in 1949. It’s the second longest public holiday in China, running for a week each year. This week long holiday is referred to as ‘Golden Week’.
During this time, many people choose to take time off work to travel and attend festivals. Most factories across the country also come to a temporary halt.
This means many companies have to rush to finish production and shipping before the shutdown, especially imports from China to the US. This in turn puts a strain on capacity, causing shipping rates to shoot up.
Carriers quickly become overbooked, and the risk of cargo rolling increases dramatically. Once Golden Week is over, we usually witness a slowdown in demand.
When is Golden Week 2024?
Golden Week in China begins on October 1st each year and runs until October 7th. Depending on the year, the dates may vary, and sometimes Golden Week is extended due to additional holiday adjustments or when weekends are included.
Golden Week shipping in China: 2023 recap
In September 2023, spot rates between the Far East to the East Coast were 40% higher than at the end of Q2. These higher rates were driven by carrier strategies to manage trade capacity, with data from Sea-Intelligence revealing a reduction in sailings in July and August.
Restrictions along the Panama Canal also meant that carriers and forwarding companies chose alternative shipping routes, leading to further pressure along the Asia-East Coast trade lane.
In a survey conducted by Container xChange after Golden Week 2023, 74% of the 1,500 supply chain professionals interviewed said that they experienced delays and disruptions during the 2023 peak period. However, they confirmed that the delays and disruptions were minimal and container prices began to fall immediately after Golden Week.
Impact of Golden Week on the supply chain
Golden Week in China has a significant impact on the overall supply chain. Let’s dive into how the global import/export industry is affected during this period.
Increased demand before the holiday period
Leading up to the holiday, it’s usual to see increased demands as factories rush to finish up and send orders before the slowdown commences. This surge in demand can cause temporary bottlenecks and overburdened manufacturing schedules.
Shipments out of China also increase drastically before the holiday period, as shippers rush to get goods delivered before the holiday begins. This leads to heavy container traffic, especially at major US ports. This increase in demand also means inflated shipping rates.
Factory closures and reduced production
During the holiday period itself, the majority of factories and businesses close down in China, as workers head home and celebrate the festival. This means a major reduction in overall production and a skeleton staff at ports and terminals.
Output from Chinese factories during this week is minimal, and all port operations are drastically reduced and can be expected to be slow.
Congestion on major shipping, road and rail routes
As we mentioned above, shipping volumes tend to increase in the weeks leading up to Golden Week.
This in turn leads to congestion at ports and a spike in freight rates due to a high demand for shipping space. Slots on vessels become expensive and difficult to organize, and congestion leads to container pile-ups at ports.
Backlogs and operational delays
With congestion along key shipping routes due to an increase in container traffic, backlogs, and operation delays occur. These delays and backlogs lead to containers waiting in ports past their allotted free days, incurring hefty port charges for shippers, including Demurrage and Detention fees.
Aftermath on the industry
Once Golden Week comes to an end, backlogs, delays, and congestion usually continue until businesses and factories can catch up. It’s also common to see Blank Sailings immediately after the holiday, as carriers try to optimize vessel utilization.
Freight rates should start to come down as demand and shipping operations return to normal levels over time, and congestion decreases.
China Golden Week shipping predictions 2024
Freight rates typically rise significantly during peak season and Golden Week, with increases of up to 50% recorded in previous years.
Key ports such as Los Angeles, Long Beach, Shanghai, and Rotterdam are particularly susceptible to congestion and delays around this time, so it’s important to keep this in mind if you’re planning shipments on this trade lane.
In response to the ongoing Red Sea crisis, shippers appear to have advanced order volumes this year, resulting in an extended peak period.
Traditionally, seasonal demand at US ports comes to a head in August. However, there appears to have been an earlier-than-usual surge in demand on the Transpacific route. This has been coupled with robust inbound volumes to Europe.
In addition, inbound volumes for both the Middle East and Latin America continue to be strong, contributing to upward pressure on shipping rates.
A freight forwarder recently told the Loadstar that spot rates on Asia-North Europe have already breached $10,000 for many customers, and claimed that elevated pricing would continue until China’s Golden Week holiday. And could even persist until the second quarter of next year.
The freight forwarder was quoted saying, “I think this is an early peak season, but I also believe this will continue into Golden Week—after speaking with customers they are mindful of the current challenges and do not want to be in a situation where they have no stock for Christmas, and are forecasting strong orders until at least then.”
Golden Week shipping: How to plan ahead to avoid delays
Leading up to peak shipping season and Golden Week, it’s more important than ever to plan ahead if you want to avoid extra costs and major delays. Here’s how:
Book shipments well in advance
Booking your shipments in advance can help you avoid heavily inflated rates around peak season and Golden Week. We recommend getting your shipments organized at least one to two months in advance.
Additionally, work with suppliers to adjust production timelines, ensuring that your most critical shipments are completed before the holiday begins.
Communicate with partners and customers
Leading up to and during Golden Week, check in with your suppliers regularly. Keeping a close eye on your cargo’s movements means you’ll have a chance to adjust plans if needed.
Some customers may not be aware of Golden Week, so you’ll need to warn them. Also, provide regular updates over this period to manage their expectations and foster trust.
Ship your goods as FCL instead of LCLWhat is less than container load? Less than container load (less than container load, LCL) is a shipping term that refers to the delivery of cargo in smaller quantities than a full container load. A f... More
FCL (Full Container Load) shipments are a better option than LCLWhat is less than container load? Less than container load (less than container load, LCL) is a shipping term that refers to the delivery of cargo in smaller quantities than a full container load. A f... More (Less than Container LoadWhat is less than container load? Less than container load (less than container load, LCL) is a shipping term that refers to the delivery of cargo in smaller quantities than a full container load. A f... More) shipments during peak season.
An FCL shipment consists of cargo from just one shipper, and can thus be loaded, transported, and unloaded more quickly than LCLWhat is less than container load? Less than container load (less than container load, LCL) is a shipping term that refers to the delivery of cargo in smaller quantities than a full container load. A f... More shipments.
This is because LCLWhat is less than container load? Less than container load (less than container load, LCL) is a shipping term that refers to the delivery of cargo in smaller quantities than a full container load. A f... More shipments need to be consolidated and deconsolidated with goods from multiple shippers, which takes time, especially during busy periods such as Golden Week.
Lease SOCs on xChange to avoid port charges
Shipping delays and container pile-ups at ports during Golden Week also mean you’ll have to shell out on Demurrage and Detention charges. These are charges imposed when shipping containers are not moved out of a port or terminal within the allotted free time.
If you’re worried about all the cash you’ll have to lay down this Golden Week due to delays, we’ve got the perfect solution for you.
On Container xChange, you can lease out SOC (Shipper Owned Containers) instead. SOCs, unlike COCs (Carrier Owned Containers) are not operated by shipping lines. Thus, you won’t be liable to shell out on port charges if your containers get stuck at ports.
Instead, you bring your own containers and avoid this issue altogether. Here, you lease a container one-way from a container owner and negotiate the rates, terms, and conditions directly.
So you can settle on the per diems and free days before the container is shipped, and avoid any nasty surprises later on. Sounds good, right? Learn more about using SOCs and their benefits in the blog post.
Use a trusted supplier network to avoid being let down
During Golden Week, it’s more important than ever to work with partners you can trust, and won’t let you down.
You can make use of our large network of vetted and pre-approved partners anytime you need. Save time and reach out to potential suppliers quickly and efficiently to organize a deal.
If you want to connect with trusted suppliers and lease SOCs at rates that suit your budget, click below to start your journey with Container xChange today.
Avoid port charges and save with Container xChange
If shipping goods before, during, or after Golden Week can’t be avoided, at least unnecessary port charges and delays can—with our convenient and easy-to-use marketplace.
Here are just a few of the benefits you’ll enjoy once you subscribe to Container xChange:
Access 100,000+ containers in 2,500 locations: On our platform, you’ll have instant access to 100,000+ containers in 2,500+ locations worldwide, in one place. So finding the units you need at the last minute is easy.
Work with 1,700+ trusted industry partners: We vet all of our partners—so you don’t have to. Connect with reliable industry players worry-free to make deals that suit your business fast.
Find matching offers instantly: Once you type in your search criteria, you’ll see a list of offers that match your requirements in just seconds. So you can browse and compare options in one convenient place, and make the best decisions without wasting time.
Negotiate prices and rates directly with suppliers: Once you’ve found an offer that suits you, you can reach out to the supplier directly on the platform—no middlemen slowing things down and charging extra commissions.
Pay quickly and safely: When your deal is finalized, pay right on the platform using our safe payment feature. It’s encrypted for an extra layer of security—so you can put your online payment anxieties to rest.
Ready to leverage our large network of suppliers to find container deals quickly and easily and avoid those nasty port charges once and for all? Click the banner below to speak to our expert team about how to get started on our platform right away.
Golden Week shipping: Common FAQs
What is Golden Week in China?
Golden Week in China starts on 1 October and runs until 7 October each year. During this time, most Chinese factories close down, as people take the week off to travel and attend festivals. Factory closures and skeleton staff at ports during this period drastically affect import and export activities around the world.
What happens during Golden Week in China?
During Golden Week in China, which runs from 1 October to 7 October each year, factories and businesses across the country shut down for the week. This means production grinds to a halt in many sectors, creating delays and bottlenecks in the supply chain.
Are shipments from China delayed during Golden Week?
During Golden Week, shipments from China are delayed due to factory closures, leading to bottlenecks in shipping and major congestion at ports. In anticipation of Golden Week, many shippers rush to move their goods before the shutdown, leading to increased freight rates and shipping traffic.
How will Golden Week impact my shipments?
Golden Week may impact your shipments in various ways, including increased freight rates, delays in delivery, extra port charges and customs delays. To minimize these challenges, organize shipments one to two months before this holiday.
