During the period of 2011 to 2019, September which is usually the peak of the peak period, reported the highest number of containers handled at the Shanghai port in 2018 alone. The analysis conducted and shown in the graph above in figure 2, does not reflect a high number on the containers handled in the Port of Shanghai during the peak season exclusively. Figure 2: Data Collected from the Chinese Ministry of Transport (2011-2019) and prepared by * A further analysis of the collective data for the months in the past 9 years, revealed that this is not the case. This, unarguably reflects China’s influence on global trade.Įven though there is an existence of the rush to meet up on exports and imports demands as well as the high prices in the sale of containers before the Golden Week Celebrations, it may seem easy to assume that the number of containers handled in September will be more in the port of Shanghai. It is evident that the containers handled in the past 9 years has substantially increased overall with the monthly trend being more or less same over the years. Looking at the data in figure 1, generated from the Chinese Ministry of Transport for container handling in the port of Shanghai, the largest port in the world based on the number of containers handled. Figure 1: Data Collected from the Chinese Ministry of Transport (2011-2019) and prepared by * A lot of countries experience the challenge of a high freight rate, which leads to the shortages and hiked prices for shipping containers, during this period. Usually, other countries have to wait till this backlog is cleared out. Scarcity of space for cargo is created by carriers as more space is allocated to Chinese shipments. Post the golden week, the demand for containers and trade traffic are expected to remain high due to the pressure to re-shelf the diminishing stock ahead of Christmas and serve the strong demand. Overall, as the country is preparing for the holiday, international trade movement is at its peak. Exporters rush to finish production and prepare for pre- golden week sailings while importers rush to make enough orders and ship as well. In order to serve the industry in time, there is a lot of pressure on importers and exporters. The peak season in the shipping industry is from mid-August and stretches through October when the demand is high, supplies are low which results in tight capacity and high freight rates. The golden week lies in the peak season of trade resulting in price hikes of containers, freight rates and an increase in blank sailings. Shippers everywhere are affected with Golden week as it results in capacity reduction all over Asia- Pacific and creates backlogs that needs to be cleared before proceeding to other processes and orders. The pre-golden week rush coincides with the beginning of the Christmas season, thus putting a lot of pressure on ocean freight. Even those who don’t trade with China are affected by the Golden week celebration. As the world trade leader, the Golden week in China affects the supply chain all over the world. Factories also get in a rush to complete their order in time. The golden week is an excellent retail opportunity, because of the increase in purchases made. Golden week generally attracts a lot of tourists and Chinese citizens tend to travel to their hometown. How does the Golden week impact the shipping industry? The Golden week, which is celebrated majorly for 7 days in China, has had only two 8-day golden weeks celebrations, in the past two decades with this year being the second one. If the two celebrations coincide, there is a week of holiday in China which is hence referred to as the ‘Golden Week.’ Almost all companies, including factories, are closed during the week and the transport services are halved. This is around the time of the mid-autumn festival. The customs vary throughout Asia on how it is celebrated.Ĭhina celebrates its national day on October 1 to commemorate the founding of the People’s Republic of China in 1949. The festival is held on the 15th day of the 8th month of the lunar calendar with a full moon at night, corresponding to mid-September to early October of the Gregorian calendar. Mid-Autumn is a famous festival in many Asian countries like China, Thailand, Korea, Cambodia, Malaysia, Vietnam, Philippines, etc. Today marks the beginning of the mid-autumn festival in China, let’s see how it affects the container shipping industry and the trend in the past 9 years.
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