Dachser, a global logistics company, has issued a warning to its customers to prepare in advance in order to minimize potential disruptions to supply chains during China’s upcoming Golden Week. This holiday, which falls between October 1 and October 7, will see most businesses and factories in China closed, coinciding with a peak season for airfreight which is already capacity-constrained.
The extended shutdown during Golden Week can have a significant impact on the international supply chain, stated Dachser, headquartered in Germany. Production in China will be halted for a week, and factories may operate at reduced capacity even after the holiday. While airports will remain open, they will have reduced manpower due to lower production volume from factories, according to the company.
Dachser recommended that shippers communicate with their suppliers and customers to assess the availability of goods and make shipment bookings at least one to two weeks in advance to mitigate potential disruptions in the supply chain. Additionally, Flexport advised securing airfreight capacity ahead of time to avoid delays or missed shipments.
As the holiday approaches, importers are rushing to finish production and make pre-Golden Week sailings, leading to further constraints on freight space and increased prices for ocean and airfreight. The company cautioned shippers to keep in mind the high prices and tight capacity for airfreight that are expected to continue.
Earlier warnings from freight forwarders highlighted an air cargo capacity crunch out of key Asian markets during the peak season due to new product launches and e-commerce demand. Recent discussions from Xeneta and TIACA emphasized the need for shippers to secure space and make contingency plans as the air cargo market faces capacity shortages in key Asian markets during the peak season.
