Port congestion in Northern Europe hampers shipping flow

27 August 2024

Port congestion is a significant obstacle for the logistics sector, especially on the crucial trade routes between Asia and Europe. Several shipping companies have recently decided to revise their schedules for multiple Asia-Europe liner services. According to the shipping lines, the adjustments are necessary due to the abnormally long waiting times at terminals in northern Europe. But what exactly is port congestion, why does it affect you and how does it disrupt entire shipping schedules?

What is port congestion?

Terminals operate within a ‘time window’. During this pre-agreed, limited period, time is reserved for loading and unloading a ship. If a container ship does not arrive, unload, load and depart within this time frame, the schedule is disrupted. When this happens repeatedly, port congestion quickly becomes an issue. Given the massive numbers of TEUs that container ships now carry, this problem cannot be resolved and cleared up in just a few days.

And with the delays we’ve been facing for several months, you can imagine that terminals cannot always cope. Consequently, a port or terminal experiences a buildup of ships, goods and other logistics activities. This results in delays and disruptions at the port, shortages of storage capacity and insufficient personnel available when needed.

Impact of the Red Sea crisis and bad weather in South Africa

Congestion in European ports has worsened due to the Red Sea crisis, which has forced ships to detour via the Cape of Good Hope. This increases transit times and causes a buildup of vessels at various ports.

Naturally, this situation also exacerbates the global congestion problem. As a result, not only shipping lines but also you as a shipper are affected. The consequences you experience include delays in shipping schedules, carrier surcharges and late freight deliveries.

Moreover, the route via South Africa is now affected by adverse weather conditions, which have already led to a cargo ship capsizing. In mid-August, MV CMA CGM Belem lost 99 containers during a severe storm near Richards Bay, South Africa. This incident occurred just a month after another CMA CGM ship lost 44 containers in a similar storm in the same region.

These circumstances present additional obstacles for shipping between Asia and Europe, meaning you, as a shipper, must anticipate further delays.

Adjusted schedules and significant delays

Several shipping companies, including Maersk, have already reported severe terminal congestion in ports around the Mediterranean and Asia, leading to significant delays and adjustments to sailing schedules. As a result of this congestion, they have announced that several shipping routes will need to be revised and adjusted.

Adjusting schedules is a direct response to the current crisis and aims to minimise further delays. In some cases, Rotterdam has been removed from the route, with ships being rerouted to another European port until further notice.

Whether these measures will be sufficient to resolve the congestion problems remains to be seen. Global supply chains are still under pressure due to international conflicts, adverse weather conditions and the aftermath of the peak season, which means the situation will remain challenging for the shipping industry for the foreseeable future.

Questions?

If you have any questions about your specific shipment, please don’t hesitate to contact your regular contact person.