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Oversea situation, Golden week update

Update from Asia, with latest news on the COVID-19 and Golden week.

Due to the logistic and container situation in Asia, this year's Golden Week (from 1 October to 7 October) will truly impact your supply chain further.

We gathered some information, together with some market forecasts. 

 

Situation in China

Limited or no production during Golden week

Golden week is a public holiday and almost all businesses, factories as well as government organizations will be closed or low-staffed. Meaning that production slowed down or stopped completely.

Airports, seaports, some terminals, and warehouses will keep running with limited capacity, and Customs offices will be closed.

ColliCare offices in China will be closed from October the 1st to the 7th.


Energy crises in China

A growing power supply crunch in China is forcing factories to cut production, threatening to slow the economy and place even more strain on global supply chains.

Companies in the country's industrial heartlands have been told to limit their energy consumption to reduce demand for power, state media has reported.

Especially when it hits some major industrial and shipping hubs, such as Guangdong, Jiangsu, and Zhejiang province, the delays caused by shortages and global shipping delays are mostly like to happen. 

The reason is mainly that China industries are facing huge pressure from soaring energy prices.

Container ships piling up

Container ships now piling up at anchorages off China’s ports 
The number of container ships berthed near Shanghai and Ningbo has surged in recent weeks.

There are now 242 container ships waiting for berths countrywide.
 

Situation in India

In India, all the ports are full-time operational with no closure or restrictions, same goes for factories and offices.

Vessel space and container availability remain an issue, a persistent situation ever since the period of COVID-19 second wave. We experience a slight improvement but far from optimal.

Rise in freight rates is a major area of concern and a global market situation. We are following the situation closely, forecasting this will persist during fall and winter 2021.

In terms of highest freight rates to lowest freight rates from India, this is what it looks like: USA and Canada, Africa, Europe, Asia, Middle East 

 

Air freight recommendation

For air freight, booking 2 weeks in advance is needed to secure cargo space.

 

Rail freight recommendation

For rail freight,  booking 3-4 weeks in advance is needed to secure cargo space.
 

We recommend you take precautions in order to reduce the impact on your supply chain
 

  • share your logistic needs and shipment deadline making us able to offer you the most suitable solution

  • communication with your suppliers and customers to avoid possible delay

  • place booking as early as possible

  • prepare the accurate shipment plan and indicate the most urgent shipment if possible

 

For any questions please contact your regular contact persons within ColliCare, we will be happy to help you