Author Name: Tiffany Lee – Marketing Analyst at FreightAmigo｜7/7/2022

Port congestion is getting worse all over the world. The containers bound for the United States were previously clogged at ports in Germany, the Netherlands etc. due to the European strike and slowdown of labor productivity. Port congestion may take several months to recover completely. Ford, BMW, and IKEA furniture were all impacted by the European strike and clogged up at ports, according to recent U.S. customs data. The situation over the next three months remains uncertain, even if there are no additional strike activities in the future.

According to Andreas Braun, Product Director of Crane Worldwide Logistics, due to the European strike, U.S. importers should now check four to five weeks in advance to see if there is a vessel available.  They must also find a location to locate their empty containers in advance.  Together with ongoing container shortages issue, shipping costs may rise and result in inflation.

Latest statistics from Sea-Intelligence shows that only 30% to 40% of ships arrive on time. The port congestion has been worsening by the slowdown in ship arrivals and container clearance handling.  Shortage of trucks, containers, and continuous European strike are also delaying the arrival time.

Port congestion is caused when container ships are blocked in various ports, including Antwerp, Hamburg, Le Havre, and Rotterdam, due to European strike and lockdowns. According to Clarksons, 36.2% of container ships in the world are experiencing port congestion, a 4.7% increase from the period between 2016 to 2019 (pre-pandemic).

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