China’s National Holiday (Golden Week)

As we approach China’s National Holiday, also known as Golden Week, we would like to remind everyone that the country will largely be shutting down from October 1st to October 7th. This national observance brings significant changes to the shipping landscape, and it is crucial to be prepared. 

In the lead-up to Golden Week, we anticipate experiencing space and equipment shortages as businesses push to get their cargo out before the holiday closure. To mitigate delays and ensure timely shipments, we strongly encourage planning ahead and booking shipments as early as possible.
For cargo arriving during this period it is crucial that suppliers are paid in advance of the closure to ensure consignments are released (eg Telex Release / Surrendered BL) to minimise the risk of additional storage/detention costs in Australia   

It is also important to note that during this holiday period, carriers are likely to implement blank sailings. These cancellations could significantly reduce the available space on vessels, further complicating logistics and potentially driving up freight rates.

Shipping Update: Current Challenges and Developments

Shipping remains volatile, primarily due to the escalating dangers in the Red Sea, where eight vessels were attacked in August alone. In response to these threats, most carriers are continuing to divert their vessels around the Cape of Good Hope in Africa, bypassing the Suez Canal. This route change significantly impacts transit times and has led to increased freight costs. Moreover, the longer journeys are contributing to container and vessel shortages, as ships are caught up on these extended trips longer than usual.

Many major ports are feeling the strain from this route alteration, with Shanghai and Ningbo experiencing some of the worst congestion. On a positive note, there is some improvement in Singapore, as port congestion has started to ease, with vessel wait times and container transit times showing signs of recovery.

Turning our attention to shipping patterns from China to Australia, the situation is currently critical. Most vessels are overbooked, forcing carriers to offload containers or cancel bookings altogether. Unfortunately, this issue is expected to worsen as we approach Golden Week, a peak time for shipping traffic. Additionally, ongoing schedule disruptions have prompted carriers to change voyages and omit certain ports in a bid to regain lost time on routes to Australia.

Weather conditions also play a significant role in shaping the shipping landscape at this time of year, as there are already reports that a major typhoon could impact parts of China in the coming days. Furthermore, recent high winds along the east coast of Australia have led to vessel delays, port and empty park closures