GLOBAL PORT CONGESTION REACHES HIGHEST LEVEL IN FOUR YEARS
The Loadstar global container shipping is experiencing its highest level of port congestion since 2022, with more than one in ten container ships delayed at ports worldwide. The renewed pressure on vessel capacity is contributing to higher freight rates and is expected to keep the market tight during the peak shipping season.
According to shipping analyst Linerlytica, 10.9% of the global container fleet, representing 3.72 million TEU of capacity, was waiting at anchor last week due to port congestion – the highest level recorded in four years. Demand continues to outpace supply, with global container demand measured in TEU-miles growing by 7.3%, compared with fleet growth of 5.4%, further tightening vessel availability, as reported by The Loadstar.
The impact is reflected in freight rates. According to Drewry's World Container Index, the spot rate from Shanghai to Rotterdam increased by 7% this week to USD 4,682 per 40-foot container. Drewry expects rates on the Asia–Europe trade to continue rising over the coming weeks, supported by strong peak season demand and disciplined capacity management by carriers.
This year's peak season also started unusually early, with demand strengthening already in May, unlike last year when the market softened during the summer. Loadstar reported that MSC has announced further General Rate Increases (GRIs) for the second half of July, targeting USD 7,700 per 40-foot container on the Asia–North Europe trade, following an earlier announcement of USD 7,500 effective from 1 July. These announced rates do not necessarily reflect the prices ultimately paid by shippers, as final freight rates remain subject to commercial negotiations.
Although current Asia–Europe freight rates are well above last year's summer peak of USD 3,468 per FEU, they remain significantly below the exceptional levels seen during the Red Sea crisis, when rates exceeded USD 8,400 per FEU. Nevertheless, the combination of ongoing port congestion, strong cargo demand and limited spare vessel capacity suggests that pressure on global supply chains is likely to continue throughout the remainder of the peak season.