Golden Week, also known as Golden Week China, is a festival of great importance in Asia that is celebrated from October 1 to 7 in commemoration of the birth of the People’s Republic of China. During this week, military parades and official ceremonies are held throughout the country, causing many government institutions and factories to close their doors. This shutdown has a significant impact on China’s infrastructure and the rest of the world.
This celebration that places the People’s Republic of China at the top, has significant implications in the logistics sector due to the increase in transport demand and a large number of shipments of merchandise not only within the local market, but also to other parts of the world, since we must remember the relevance of this country both in the manufacture and export of products internationally.
The Golden Week China and its global impact
Many companies and factories close during Golden Week China, which means that companies that depend on the production and supply of products can be affected by a disruption in the supply chain, which has a significant impact on both the global economy and the logistics sector.
To reduce this impact, it is important to plan and prepare in advance to ensure timely delivery and meet customer needs. This may include planning alternative shipping routes, allocating additional resources, and collaborating with local logistics partners to ensure efficient delivery during that week.
Spillover effects on international trade
Golden Week may have a major impact on trade due to temporary disruption in production and shipping of goods from China, congestion at Chinese ports, and increased demand for product shipping during this busy week. Below, we share other effects that you should consider for your shipments of goods:
- Reduction in the capacity of the factories due to the high demand on holidays.
Fully knowing that China is currently the largest manufacturer and exporter in the world, it is clearly understandable that during this great national celebration, the high demand for orders and shipments by businesses and private customers will significantly decrease the production capacity of the factories. To this we must add the fact that these days are practically holidays, which makes this type of operation even more difficult due to the lack of personnel typical of those festive dates.
- Lack of space after high demand for shipments
A typical problem that arises during this festive week is the lack of available space on cargo ships due to the high demand that skyrockets and that makes in some cases an almost impossible task to coordinate shipments with a high number of goods for a date even estimated. This results in imminent delays in deliveries from China to other parts of the world, also generating considerable economic losses due to non-compliance with the established deadlines.
While delays in delivery times caused by Golden Week China are a concern for carriers, the integrity of the goods is just as important. For this, we always advise the approach with our experts in logistics risks that in addition to having a broad vision of the market, also have insurance plans adaptable to the characteristics of your business. At ONUS Insurance we are knowledgeable about everything related to the logistics industry thanks to our years of experience being leaders in this competitive sector, we invite you to meet us.