Golden week is approaching - how to avoid price peaks on China exports
October the 1st is the National Day of the People's Republic of China. It's celebrated as usual this year as pandemic restrictions are eased, and the festivities are taking place all over China.
This year, the national day coincides with "mid-autumn day", a 2000-year-old holiday, and a day when many choose to get married. The holiday this year, the so-called "golden week" lasts for eight days, October 1st to October 8th.
Transports are affected during Golden Week
During the period 1-8 October, factories are closed, and transport is at a standstill. It is also conceivable that production is slow just before the period and just after, as much Chinese travel to their home provinces to visit relatives and friends. Also, blank sailings from several shipping companies are already being announced during this period.
Expect higher costs on imports from China
As usual, this holiday also affects the prices of exports from China to Sweden. In the last week alone, the price between Far East Mainports and Gothenburg has risen by 10 per cent.
Before the holidays, production in Chinese factories is high, and a lot of goods are to be shipped out, which means that the price peak has not yet been reached.
How to avoid price peaks in China imports
That this holiday is on the calendar is nothing new. Every year, this price peak occurs at the end of August and into September.
Make sure you have access to relevant data and history on the price variation.
Have a little extra control over your specific trade lanes and, if possible, plan your purchases so that production is complete before the pressure on transport increases.
Also keep in mind that after Golden Week, October the 8th and onwards, the factories have a long backlog to catch up on and prices for transport remain high also in October.
Do you also want to start working more data-driven with your transports?
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