2023-11-06 10:49:06
The Golden Week china It is an event that lasts precisely one week, and has a significant impact on the dynamics of international logistics. During it, in China a break in productivity and for workers to take a vacation, travel or carry out other activities. In this article we will detail what the Chinese Golden Week is, when it takes place and how it influences the logistics industry.
What is Chinese Golden Week?
Golde Week is a Chinese event that consists of closure or reduction of production in companies in the republic. It was implemented in 2000 and is done in order to celebrate the creation of the People’s Republic of China.
Although the ideal is for companies to stop production, others reduce working hours and only produce the minimum necessary to supply. The objective is to boost tourism and improve lifestyle. Due to the impact it has on the world economy, Golden Week has received criticism and there have been requests to reduce the number of days it lasts.
When is Chinese Golden Week?
Total, Chinese Golden Week comprises three holidays throughout the year. In them, the slogan is that companies close, which allows their workers to enjoy a vacation and also take a break.
Between January and February. This golden week coincides with the Chinese New Year. In May, it usually begins on the first day of that month and was reintroduced in 2019. The best known, which begins in the first week of October. It can last up to eight days.
What happens during the Chinese Golden Week?
When this golden week begins, workers take a break. It is common to see crowds taking a train, bus or plane to enjoy a brief vacation and start a trip with family or friends.
Companies, ports and terminals stop production or leave it at a minimum, which undoubtedly impacts importers and exporters. It is normal to see a series of delays and delays in logistics activitiesso the import and export sectors of products and merchandise are greatly affected.
Therefore, it is recommended that these activities and logistical tasks be carried out and completed before the Chinese Golden Week begins. In this way, importers and exporters will not be affected by the downturn in the production chain and logistics operations.
Chinese Golden Week: what it is and how it impacts international logistics 6
How does the Chinese Golden Week influence the logistics industry?
Because many industries anticipate production shutdowns during China’s golden week, there is often a saturation in logistics activities prior to the closure of these companies. For example, it is common for the international logistics industry to be at its peak by the end of September.
Other ways in which the Chinese Golden Week impacts the international logistics industry are as follows:
A decrease in demand for products during the golden week. Because foreign companies prevent this break, they do not usually place orders or purchases during Golden Week. Therefore, there are usually shortages until at least three weeks after said holiday.
Problems getting a space for loading merchandise. In addition, there is an increase in rates and the risk of losses due to failure to meet previous deadlines increases. The same occurs for services by land, sea and air, where demand and, therefore, prices also increase.
Overbooking becomes more common, this due to the increase in load. Generally, the day after the end of the Golden Week, the blank sailing or the cancellation of a stopover or route for a ship. This allows the use of the ships to be optimized. It produces a increase in demand from the e-commerce sector. The most common thing is that there is an increase in saturation on the route between Europe and China.
As we see, the Chinese Golden Week has a very large impact on the world economy, as it produces changes in the dynamics of shipping, transportation and the logistics sector. Therefore, we recommend acting with prevention and planning our orders in advance, in case we are in the import and export sector.
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