Port congestion is not a recent issue; it has been a persistent problem for global trade for decades. However, in 2024, it reached a critical tipping point, disrupting supply chains worldwide. As this challenge is expected to persist into 2025, businesses must adopt strategies to mitigate its impact and remain competitive.
This article delves into the complex factors driving the crisis, offering practical insights into the challenges straining ports and global commerce.
Factors driving global port congestion crisis in 2024
In 2024, port congestion has worsened for many ports around the world. The negative effects are huge:
- Shipping costs are rising due to higher freight rates, demurrage charges, and congestion surcharges imposed on carriers. On some trade lanes, shipping companies may not agree to long-term contracts, privileging expensive spot rates.
- Inflationary pressures are mounting as these increased shipping costs are passed on to the price of goods, potentially diminishing consumers’ purchasing power.
- Production and delivery delays can result in stockouts or overstocking. This disruption can harm sales, damage retailers’ reputations, and reduce customer satisfaction. To mitigate delays, businesses might need to maintain higher inventory levels, increasing warehousing and storage costs. Delays in perishable goods can lead to spoilage, causing significant waste.
- From an environmental perspective, ships waiting at ports or taking longer routes to avoid congestion contribute to higher greenhouse gas emissions. The additional fuel consumption worsens air pollution and accelerates climate change. Moreover, port congestion increases waste and resource use.
- On the social front, port congestion significantly impacts local communities, with GHG emissions deteriorating air quality and heightening noise pollution. Additionally, communities may face disruptions due to the heightened activity and strain on infrastructure.
The crisis results from a combination of factors, including surging trade volumes, labor shortages, and geopolitical tensions. The compounded effects of these issues have strained port operations, causing significant delays and disruptions that ripple through the entire supply chain.
Increased global trade volumes
Labor shortages
Labor shortages, exacerbated by post-pandemic workforce shifts and aging labor demographics, significantly impacted port operations in 2024. With fewer dockworkers available to unload and process cargo, ports experienced delays, which contributed to congestion and extended the time ships spent waiting to be serviced.
Global supply chain disruptions
Ongoing disruptions in the global supply chain, including container shortages and inconsistent shipping schedules, contributed to port congestion in 2024. These issues led to uneven cargo arrivals, with periods of intense activity followed by lulls, complicating the efficient management of port operations.
Geopolitical tensions
Geopolitical tensions escalated with a series of attacks in the Red Sea since the end of 2023, particularly around Yemen, where conflict has intensified. These attacks targeted commercial vessels, raising significant security concerns for shipping companies operating in the region. As a result, to avoid conflict zones, many ships were forced to opt for safer passages around the Cape of Good Hope, in the southern tip of Africa.
This rerouting not only added significant travel time and costs but also led to congestion at African ports, which were unprepared for the sudden increase in traffic. The shift in trade flows this year caused delays and bottlenecks. The resulting uneven distribution of cargo across global ports further strains global supply chains already under pressure.
Stricter environmental regulations
Stricter environmental regulations these recent years required ships to use cleaner fuels and adhere to slower sailing speeds to reduce emissions. While environmentally beneficial, these measures inadvertently slowed down supply chains, leading to delays and contributing to congestion as more ships took longer to reach and clear ports.
Technological disruptions
Despite advances in port automation and digitalization, technological disruptions, including cybersecurity threats and system outages, impacted port efficiency. These disruptions caused operational delays and data inaccuracies, contributing to port congestion as logistics processes were temporarily halted or slowed down.
Insufficient infrastructure investment
In some other regions, infrastructure investment has lagged behind the growing demands of global trade. Aging port facilities meant that many terminals were unable to efficiently handle the increased volume of shipments, leading to congestion and extended wait times. Africa, South America, and South and Southeast Asia are particularly concerned.
- Lagos Port Complex (Nigeria): despite being one of the busiest ports in West Africa, Lagos Port struggles with outdated infrastructure and limited capacity, resulting in significant congestion and long wait times for ships.
- Port of Mombasa (Kenya): as a major gateway for East African trade, Mombasa Port has faced challenges with aging infrastructure and slow expansion efforts, leading to delays in cargo handling and increased congestion.
- Port of Santos: this Brazilian port, which is also the busiest port in Latin America, has struggled with congestion due to limited infrastructure development, particularly in container handling, which has not kept pace with the growing volume of trade.
- Port of Buenos Aires: Argentina’s main port faces challenges with outdated facilities and a lack of investment in modernizing equipment, contributing to inefficiencies and congestion.
- Chittagong Port, the largest port in Bangladesh, suffers from severe congestion due to outdated infrastructure and insufficient expansion, despite the rapidly growing volume of exports, particularly in the garment industry.
- Nhava Sheva (Jawaharlal Nehru Port, India): while being one of the busiest ports in India, Nhava Sheva has faced delays and congestion issues due to the slow pace of infrastructure upgrades and the high volume of trade.
- Port of Manila (Philippines): it has faced significant congestion due to limited space for expansion and inadequate infrastructure to handle the growing volume of shipments, leading to extended wait times for vessels.
- Tanjung Priok Port: Indonesia’s busiest port has struggled with congestion due to underinvestment in infrastructure and inefficiencies in cargo handling operations.
Extreme weather events
Because of climate change, extreme weather events, such as hurricanes and typhoons, became more frequent last year, temporarily shutting down ports or slowing down operations. These disruptions caused delays in cargo handling and created a backlog of ships waiting to dock, exacerbating congestion in already strained ports. Such a situation happened more than once since the beginning of 2024:
- In February 2024, a severe winter storm brought heavy snow and ice to ports in Northern Europe, including Rotterdam and Hamburg. The extreme cold and poor visibility hampered port operations, leading to significant delays in cargo handling and a buildup of ships waiting to enter the ports.
- In March 2024, the powerful Hurricane Elias caused significant disruption to port operations in the Gulf of Mexico, particularly in ports such as Houston and New Orleans. The storm led to port closures, delays in cargo handling, and a backlog of vessels waiting to dock.
- Cyclone Bindu disrupted shipping routes and port operations in the Indian Ocean in April 2024, particularly affecting the Port of Colombo in Sri Lanka and Port Louis in Mauritius. The storm caused port closures and delays, resulting in congestion as vessels sought safe harbor or were forced to wait offshore.
- In May 2024, unprecedented flooding along the Mississippi River caused disruptions at ports such as New Orleans and Baton Rouge. The high water levels and strong currents delayed barge traffic and impacted port operations, leading to congestion and delays in cargo movement.
- Typhoon Nuri struck the South China Sea in June 2024, causing severe disruptions at major ports in Hong Kong, Shenzhen, and Guangzhou. The storm resulted in the temporary shutdown of these ports, creating congestion as ships were forced to delay their arrivals or reroute to alternative ports.
The most congested ports in the world in 2024
Some ports were more severely impacted by port congestion in 2024, with a significant increase between May and June.
- The port of Durban in South Africa experienced severe congestion, with average anchor and berth times exceeding 9.8 days in June (6.9 days in May) due to operational inefficiencies and equipment shortages. Durban consistently ranks as one of the most congested ports, especially during peak shipping periods.
- Despite improvements, this major Chinese port remained highly congested with average delays of 9.8 days in June (6.5 days in May). Being the busiest container port globally, Ningbo-Zhoushan faces ongoing pressure due to surging demand and logistical bottlenecks.
- In the United States, Charleston saw a sharp rise in congestion, with average delays of 5.0 days in June, primarily due to labor disputes and increased container volumes.
- The port of Chittagong in Bangladesh experienced delays averaging 4.1 days in June, driven by infrastructure limitations and rising export volumes.
- Despite improvements from previous years, the Port of Los Angeles in the USA continued to struggle with congestion, reporting average delays of 3.7 days in 2024, as it handles a significant share of U.S. imports, particularly from Asia.
- Jebel Ali, in the United Arab Emirates, follows closely with an average waiting time of 3.8 days, while in Vancouver, Canada, ships experience delays of 3.6 days.
Note: These port congestion figures are calculated by summing the average time vessels spend at the anchor and the berth during a specific period. This metric provides a comprehensive assessment of the delays experienced by ships waiting to load or unload cargo.
Port congestion: what lies ahead and the forces shaping it
Port congestion is likely to persist in the coming months and years, driven by a combination of factors that are likely to exacerbate delays and bottlenecks at major global ports. One of the key expectations is that ongoing disruptions in global supply chains, including the lingering effects of the COVID-19 pandemic, will continue to strain port operations. The demand for goods remains high, and with it, the volume of shipments is expected to stay elevated, putting sustained pressure on port capacities.
Additionally, geopolitical tensions, such as conflicts in key maritime regions like the Red Sea and South China Sea, are likely to force shipping companies to reroute vessels, leading to increased congestion at alternative ports that may not be equipped to handle the sudden influx of traffic. These geopolitical risks will play a crucial role in determining the severity and location of future congestion.
Environmental regulations will also influence port congestion. Stricter emissions standards and the push for greener shipping practices are expected to slow down vessel speeds and alter shipping routes, further extending transit times and contributing to congestion. Ports will need to adapt to these changes by investing in cleaner technologies and expanding their infrastructure to accommodate the evolving needs of the shipping industry.
Another critical factor is the pace of infrastructure investment. In many regions, ports are struggling with outdated facilities that are not equipped to handle the increasing volume of global trade. Without significant investment in modernization and expansion, these ports will continue to experience severe congestion. The availability of labor, particularly skilled dockworkers, will also impact port efficiency. If not addressed, labor shortages could lead to prolonged cargo handling delays.
The key role of ETA calculators managing disruptions due to port congestion
The global supply chain and international transportation sectors face unprecedented challenges, particularly due to port congestion emerging as a particularly disruptive factor. In this turbulent landscape, ETA (Estimated Time of Arrival) calculators have become invaluable tools for managing the complexities of shipment tracking.
These modern tools offer real-time estimates of when shipments will reach their destinations, considering a wide range of factors that can influence transit times. One of the primary advantages of ETA calculators is their ability to integrate real-time data, such as vessel positions, weather conditions, and port congestion levels. By continuously updating this information, they offer businesses accurate and dynamic predictions of arrival times. This feature is crucial in a landscape where delays are increasingly common, enabling companies to adjust their logistics plans proactively.
Additionally, ETA calculators can analyze historical data and predict potential delays based on current trends in port activity. For instance, if a particular port is known for frequent bottlenecks during certain times of the year, the calculator can factor this into its estimates, providing a more realistic arrival time. This predictive capability allows businesses to make informed decisions about rerouting shipments or adjusting inventory levels.
Furthermore, ETA calculators facilitate better communication across the supply chain. By providing stakeholders—such as suppliers, carriers, and customers—with a clear and updated timeline, these tools help to manage expectations and reduce uncertainty. This transparency is vital for maintaining strong business relationships, especially when delays are inevitable.
Powered by cutting-edge AI, machine learning, and big data analytics, Sinay’s solution helps all stakeholders in the maritime sector improve their supply chain management.
As ports struggle to cope with multiple challenges, ETA calculators are indispensable for navigating the complexities of modern supply chains. They offer real-time, data-driven insights that help businesses manage the disruptions caused by port congestion, ensuring that shipments are tracked accurately and that logistics operations remain as efficient as possible despite the challenges.
FAQ about port congestion updates
Port congestion refers to the buildup of ships at a port, leading to delays in loading and unloading cargo. In 2024-2025, this issue has intensified due to factors like increased global trade, labor shortages, geopolitical tensions, and aging port infrastructure.
Port congestion disrupts supply chains by causing delays in shipping times, increasing freight costs, and leading to inventory shortages. It can also contribute to higher prices for goods and inefficiencies in production and distribution.
In 2024, ports such as Durban (South Africa), Ningbo-Zhoushan (China), and Chittagong (Bangladesh) have experienced some of the longest delays. Real-time data shows delays averaging 9-10 days at several major global ports.
Long-term solutions include investing in port infrastructure, adopting advanced technologies like automation, and improving global cooperation to manage trade flows more efficiently. Environmental regulations and labor shortages will also need to be addressed.
