Global Trade Faces New Challenges as Port Congestion Worsens in Europe and Beyond
Port congestion at major European hubs is intensifying, with significant increases in waiting times for berth space reported across Bremerhaven, Antwerp, Hamburg, Rotterdam, and the UK's Felixstowe. According to maritime consultancy Drewry, these delays, attributed to labor shortages and low water levels on the Rhine River, are disrupting global supply chains and threatening to push up shipping costs. The situation is further complicated by the temporary rollback of US tariffs on Chinese imports, which has accelerated shipping demand between the two largest economies.
The ripple effects of these disruptions are not confined to Europe. Similar congestion patterns are emerging in Shenzhen, China, as well as Los Angeles and New York, where the number of container ships awaiting berth has been on the rise since late April. This global bottleneck underscores the interconnected nature of modern trade networks and the vulnerability of supply chains to a range of logistical and political factors.
Rolf Habben Jansen, CEO of Hapag-Lloyd AG, has noted recent signs of improvement at European ports but warns that it may take another six to eight weeks before the situation is fully under control. The need for a gradual restoration of regular journeys through the Suez Canal is emphasized to avoid overwhelming ports with vessel traffic, which could lead to further congestion.
Meanwhile, the temporary truce in US-China tariffs has yet to significantly impact trans-Pacific shipping volumes, according to Torsten Slok, chief economist at Apollo Management. With the 90-day pause in tariffs set to expire on August 14, the global trade landscape remains uncertain, as businesses and governments alike navigate the challenges of port congestion, labor shortages, and fluctuating trade policies.
