Golden Week, capacity issues and Peak Season Surcharge
1 September 2020
For those who import from China, Golden Week is probably a familiar concept. Shipping routes from the Far East are exceptionally busy over this week of festivities. As a result, capacity margins – already very scarce this year – will be further reduced. The Peak Season Surcharge (PSS), set as a result of this scarcity, may therefore be increased. So what’s the outlook?
Golden Week 2020
Golden Week is one of China’s most important holidays. Many families travel long distances to celebrate it together. It is therefore customary that people in China are free for a longer period of time around these kinds of important holidays.
In 2020, Golden Week will be celebrated from 1 to 8 October. During this period, importers must take the following restrictions into account:
- Factories are closed
- Ports come to a virtual standstill
- Our Chinese agents work at minimal staffing levels
These restrictions cause serious capacity problems every year. So in the run-up to Golden Week, everyone wants to ship their goods ‘as fast as possible’. Containers can no longer be rolled over to the next sailing. After Golden Week, on the other hand, there is not enough cargo supply. As a result, shipping companies cancel last-minute sailings and containers are also delayed then too.
Can’t avoid importing from China around Golden Week? Then make sure you place your booking well in advance. There is then a greater chance that your cargo will be loaded on the planned sailing. You could of course consider transporting your freight from China by rail. This is possible for both FCL and LCL. Ask us about the options.
Peak Season Surcharge (PSS) from 20 August
The current capacity issues in the shipping industry are unprecedented. This is mainly because shipping companies are cancelling many sailings for various reasons. Other factors, such as the peak season and Golden Week, are likely to exacerbate the capacity shortage. Which is why shipping companies have set a Peak Season Surcharge (PSS).
The PSS applies to all bookings from the Far East with an on-board date from 20 August 2020. If these capacity issues intensify further, this surcharge may be increased again in September. Ritra Cargo’s clients will of course be notified in good time if this happens.
Do you have questions about the Golden Week, the capacity issues or the Peak Season Surcharge? Your Ritra Cargo contact will be happy to answer them for you!
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