Extended May Day Likely to Disrupt Supply Chains

Chinese officials announced changes to the May Day Holiday weekend in an act to stimulate China’s economy amidst disappointing first quarter data. Observance of the holiday will now take place between May 1-4, 2019.

Despite the shift from one to four days, it will not create any additional days off for workers. Instead, workers are expected to make up lost time on the job during two newly designated work weekends on Sunday, April 28 and Sunday, May 5.

At this time, it is uncertain exactly how much the extended holiday will disrupt supply chains for upcoming shipments. However, importers should brace for a potential mini-peak season fraught with delays and rolling cargo as Chinese factories scramble to get the cargo out within the new time constraints.

The modifications are not expected to generate space issues in and of themselves, but will likely exacerbate any space issues created by the additional blank sailings issued by carriers for the 2019-2020 contract season.

Shapiro will continue to monitor the situation and will provide updates as they become available.