Dachser warns of potential golden week supply chain disruption
17 / 09 / 2024
Photo: Jaromir Chalabala/ Shutterstock
Dachser has warned customers to “start preparing now to minimise potential disruptions” to supply chains ahead of Golden Week in China.
The forwarder said that from October 1 to October 7, most businesses and factories in China will be closed for the Golden Week holiday, which takes place during an already capacity-constrained peak season for airfreight.
“As one of the world’s most important economies, this extended shutdown can significantly impact the international supply chain,” said Germany-headquartered Dachser in a statement.
Production at businesses in China will be paused for a week and factories may not run at full capacity post-Golden Week.
Airports will keep operating but with reduced manpower due to low production volume from factories, said the company.
Dachser advised shippers to communicate with suppliers and customers to assess the availability of goods and arrange shipment bookings at least one to two weeks in advance to reduce potential supply chain disruption.
In its customer guidance, Flexport also advised securing airfreight capacity in advance to avoid delayed or missed shipments.
“As we approach October 1, importers are rushing to finish production and make pre-Golden Week sailings. This will further constrain freight space (which is already very tight during peak season) and drive up prices for both ocean freight and airfreight. Carriers will be more overbooked than usual, which will likely result in cargo being rolled.”
However, the company suggested that shippers “keep in mind that it’s been a pricey season for airfreight, with high prices and tight capacity expected to continue”.
Earlier this month, freight forwarders warned of an air cargo capacity crunch out of key Asian markets during the peak season as new product launches and e-commerce demand put pressure on an already strained market.
A recent webinar from Xeneta and TIACA also highlighted the need for shippers to secure space and make contingency plans as the air cargo market faces capacity shortages out of key Asian markets during the peak season.
