Logistics News | Global Port Congestion Hits a New High

Author Name: Tiffany Lee – Marketing Analyst at FreightAmigo｜2/8/2022

According to a study by Clarksons, the world’s leading provider of integrated shipping services, the container ship port congestion index has reached a new high on July 14. The boxship fleet capacity at port was 37.9%, which was greater than the previous peak level of 37.3%, recorded on October 21 last year. This also stood above the pre-pandemic average of 31.5%, recorded between 2016 and 2019.

The current container ship port congestion in North America is showing an unprecedented severity. According to Marine Traffic, a total of 153 container ships were waiting near the ports on the morning of July 28. Most of them were found in ports along the US East Coast and Gulf Coast. Clarksons also pointed out that some containers were shifted to the East Coast to avoid the current railway strike on West Coast. This increased the throughput of the East Coast, resulting in a record high of 1.2 million TEU in mid-July.

Some shipping companies emphasized that some American and European ports are outdated and underdeveloped. Also, some labor unions strongly opposed the idea of automation. Moreover, port workers have gone on strike because they are dissatisfied with the disproportionate salary increase and inflation rate. Recent strikes at Dutch and German ports are some of the examples. Also, British railway workers are planning to go on strike in the upcoming months. While typhoon season is arriving in Asia and the situation of container ship port congestion is likely to get worse. Shipping schedule delays are likely to continue.

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