New wave of congestion in container ports

Container ports are facing a new wave of congestion, with approximately 9 million TEUs stuck, approaching critical levels of the COVID-19 pandemic. The crisis in the Red Sea has forced container ships to reroute to the Cape of Good Hope, increasing TEU-mile demand by 12%.

 

Experts believe that the year has exceeded expectations in trade volumes, driving markets to exceptional levels. This increase in congestion results from a combination of limited port infrastructure, vessel diversions and overall trade growth of 8% year-on-year from January to April.

 

The expectation of vessel and equipment shortages in the third quarter led shippers to advance exports to May and June, triggering an early peak season and exacerbating logistical bottlenecks. According to a UK statistics outlet, the percentage of boxships detained in port increased from 27.5% in February to 31% in June, although still below the 37% pandemic. Diversions to longer routes and a 19% increase in fleet capacity since 2022 have added to the complexity of the situation.