- Severe port congestion persists across Europe, Asia, and the U.S., disrupting vessel schedules and inland logistics.
- Shippers are frontloading on the China–U.S. trade lane ahead of a potential policy change, increasing pressure on trans-Pacific routes.
- Carriers have reduced blank sailings significantly to manage rising demand.
- Ocean freight rates have surged, with more mid-month increases expected.
Container shipping continues to face disruptions and unstable freight rates, though the number of blank sailings on key East-West routes is expected to decline in the coming weeks. Between mid-June and mid-July, carriers plan to cancel 55 out of 709 scheduled sailings—an overall cancellation rate of 8%. Most of these are concentrated on the Transpacific Eastbound route, followed by services between Asia and Europe or the Mediterranean, and the Transatlantic Westbound trade. Despite this, schedule reliability remains under pressure, with only 92% of weekly sailings expected to depart as planned.
Port Congestion, Frontloading, and Rate Increase Add Pressure to Global Supply Chains
Global port congestion is continuing to disrupt supply chains, with major delays reported across key regions. In Europe, vessels experienced significant berthing delays last week—up to 23 hours in Rotterdam and 41 hours in Antwerp. Similar issues are unfolding in Asia, where ports like Shanghai, Singapore, and Port Klang are seeing increased congestion, particularly at transshipment hubs such as Singapore. In the U.S., congestion at major ports, including Los Angeles and New York, is causing vessel bunching, longer transit times, and added complexity to inland logistics.
This strain is being compounded by a spike in frontloading activity on the China–U.S. trade route, as shippers rush to move goods ahead of a possible policy shift slated for 14 August. The resulting surge in demand has intensified pressure on trans-Pacific lanes and driven freight rate increases. Carriers have responded by scaling back blank sailings, with reductions of 52% on the East Coast and 28% on the West Coast between May and June.
Ocean freight rates have risen sharply following the 1 June General Rate Increases. According to Drewry’s World Container Index, the composite rate jumped 41% week-on-week to $3,527. Rates on transpacific routes climbed 46%, while Asia–Europe and Mediterranean lanes saw a 36% increase. Transatlantic rates edged up 2%, with further hikes anticipated later in the month.
Given the ongoing volatility, shippers are advised to maintain flexibility and strengthen ties with carriers to manage disruptions better and maintain supply chain resilience
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Source: Drewry Shipping
