Delays and congestion in ports due to the holiday season

23 December 2024

The global container shipping industry is currently facing a challenging period. With the holiday season approaching, significant delays and congestion are building up in container ports across Europe and Asia, putting even more pressure on the logistics chain.

Problems on the waterways

The volume of ships and rising freight rates are causing difficulties around the holiday period. Many ships are arriving overloaded, while terminals are struggling to maintain high throughput speeds.

Additional issues, such as the crisis in the Red Sea, are forcing ships to take longer routes, like sailing around the Cape of Good Hope, which further extends transit times. In addition, adverse weather conditions in regions such as China and South Africa are causing incidents and adding to delays.

Overcrowded container ports

Container ports in China and Northern Europe are experiencing severe congestion in the lead-up to the holidays. In ports like Shanghai and Ningbo, the number of ships awaiting processing has doubled. European ports such as Rotterdam, Antwerp, and Hamburg are also gridlocked.

This increased traffic is partly due to shippers sending their imports from Asia early, hoping to avoid potential logistics issues such as strikes or other disruptions. Meanwhile, terminals are facing space shortages, and truckers are waiting for hours to collect empty containers. Shipping lines are raising surcharges, which in turn increases transportation costs for shippers.

Impact of early Chinese New Year

The Chinese New Year falls on 29 January 2025. As always, this has a significant impact on global sea freight. During this festive period, Chinese factories close in large numbers as workers visit their home town to celebrate with family. This results in temporary production downtime, affecting logistics chains worldwide. Naturally, a peak in freight rates and port congestion is expected to continue through the Chinese New Year period.

The combination of holiday season disruptions, logistics challenges and extreme weather conditions makes this period particularly complex for container shipping. For shippers, early planning is crucial.

Do you have questions about your specific shipment? Please don’t hesitate to contact your regular contact person.