In China, Golden Week is the celebration of its National Day, which consists of a holiday period during which millions of people travel and productivity drops considerably. It was created by the Chinese government to stimulate domestic consumption and tourism, allow workers to rest, and promote national unity.
This celebration takes place twice a year, between January and February and, most importantly, in the first week of October. Studies show that retail trade in some countries visited by Chinese tourists during this period increases sales by up to 50%.
How does Golden Week impact transportation and logistics processes?
- With the exception of essential sectors, Chinese factories, offices, and businesses suspend their activities or operate at very low capacity for a week.
- Millions of people travel, generating high demand for transportation, hotels, and tourist attractions. Online searches for travel items during this period can increase by over 250%.
- Companies may face product shortages during and after the holiday season.
- Industrial and logistics activity slows down, causing congestion at ports, shipping delays, and increases in logistics and freight costs.
- Supply chain efficiency declines: in 2023, 74% of professionals in this area experienced delays and disruptions during this holiday season.
Recommendations to reduce these impacts
Plan ahead: forecasting demand, increasing inventory levels, or adjusting production schedules can help minimize supply chain disruptions.
Use cutting-edge technology: systems, platforms, and applications can offer solutions for monitoring, managing logistics operations, or anticipating crisis scenarios in order to act in a timely manner.
Supplier diversification: like Golden Week, seasonal sales such as Black Friday or Christmas can cause logistical disruptions, so reducing dependence on a single supplier is a precautionary measure to avoid the risk of delivery delays.
ED Forwarding, a member of the PSA Group, has strategic alliances, partners, and collaborators that have enabled it to maintain the flow of supply chains and coordinate shipments and on-time deliveries even during periods of high demand for transportation and logistics services, such as Golden Week.
