Preparing Ocean Freight Logistics for Golden Week 2024

Preparing Ocean Freight Logistics for Golden Week 2024

Golden Week celebrates the National Day of the People’s Republic of China with a week-long holiday. Falling on the first week of October, this year’s celebrations will span from October 1st to October 7th, 2024. During this time, closures of factories and ports across the country occur. This impacts organisations with ocean freight forwarding needs, who face a rush in the weeks before and after Golden Week.

This year, the Red Sea disruptions are placing added pressure on supply chains during Golden Week. Supply chain managers will already be setting preparations in place to avoid unnecessary costs and get their shipments delivered as fast as possible. We sat down with Mathew Grundy, Stockwells Pricing Manager, to take a closer look at how ocean freight rates, container availability and ship capacity may affect ocean freight logistics during Golden Week 2024. 

Extended shipping times

With conflict making the Red Sea channel a high-risk route for shippers, many are diverting their vessels. This extra time on the ocean may also be coupled with other issues that cause shipping delays. For example, overcrowding at The Port of Singapore will have significant impacts on Golden Week 2024. With route changes and unexpected arrivals still occurring, the port’s capacity is strained to the point of reduced productivity. This will likely be exaggerated in the weeks surrounding Golden Week, as there will be a spike in ships moving to and from China that require servicing at the port. 

Increased ocean freight rates

Ocean freight rates are expected to increase around Golden Week 2024. Nearing peak time, rates have been increasing on a roughly fortnightly basis. They’re now predicted to reach around $3000 to $4000 USD — double the price they were in October 2023. 

Stockwells’ Business Intelligence Hub is a key player in helping clients avoid unnecessary costs. We analyse every phase in the journey of our client’s cargo, such as the cost of different shipping lines. This allows us to pinpoint cost-saving opportunities across the board— taking the pressure off supply chains during an already fast-paced time of year.

Reduced ship capacity in Australia

A capacity squeeze on ships in the Australian market means planning shipments in advance is crucial for smooth sailing during Golden Week 2024. Supply chain disruptions have increased ocean freight rates across the globe, but Australia has been slower to catch up. In an effort to increase revenue and meet increased demand during this time, many shipping lines are moving their largest ships to other areas of the world. 

For example, ocean freight rates in North America and Mexico are around double the cost of what they are in Australia. With mostly smaller vessels available, shipping lines are more limited than usual when it comes to the amount of cargo they can transport at a time. 

This reduced capacity means that securing space on vessels around Golden Week 2024 may be especially competitive. Stockwells advises giving your Stockwells logistics partner and manufacturer as much notice as possible to have the best chance of obtaining your ideal route. 

Reduced free time for containers at ports

Issues like port congestion and container backlogging has left shippers navigating a global container shortage. In 2024, many ports have reduced the amount of free days for containers to be kept at ports. This means that meticulously-planned port transport is especially important during Golden Week 2024. 

Wherever possible, our team protects our clients from avoidable fees. In preparation for Golden Week 2024, we’re liaising with our network of warehousing centres, fleet of trucks and third-party contractors to uphold a streamlined client experience. 

Stockwells logistics solutions — the importance of advanced notice 

For clients preparing for the ocean freight rush around Golden Week 2024, planning in advance is essential. With enough notice, we have access to the best possible transport options for your shipment. We’ll tailor solutions with a deep consideration for shipping times, ocean freight rates, ship capacity and port transport. 

To place orders or learn more about how Golden Week 2024 will impact your supply chain, please get in touch with your Stockwells logistics partner — we look forward to hearing from you. 

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