Shipping bottlenecks in Europe send a warning signal to US, Asia

By Admin

28 May, 2025

In recent months, shipping bottlenecks at major European ports have worsened significantly, signaling potential disruptions that could ripple across global trade routes   especially impacting the US and Asia. A detailed report from maritime consultancy Drewry reveals alarming increases in port congestion across key northern European gateways, threatening to push up shipping rates and exacerbate supply chain challenges worldwide.

Escalating Port Congestion in Northern Europe

According to Drewry’s latest findings, waiting times for berth space have surged drastically in Europe’s busiest ports. Bremerhaven, Germany, experienced a staggering 77% increase in waiting times between late March and mid-May. Other key hubs such as Antwerp, Hamburg, Rotterdam, and Felixstowe have also seen substantial delays, with increases ranging from 37% to 49%. This growing congestion is hampering smooth cargo flow, causing longer transit times and frustrating logistics operators.

Two primary issues are responsible for these delays:

• Labor shortages at ports, reducing operational efficiency.
  
  

• Low water levels in the Rhine River, a crucial inland waterway that supports barge traffic, limiting cargo movement to and from hinterland destinations.
  
  

Impact of US-China Trade Policy on Shipping Demand

Complicating the situation further is the recent US policy shift. The temporary rollback of 145% tariffs on Chinese imports by former President Donald Trump has accelerated shipping demand between the world’s largest economies. Drewry notes that port delays are forcing shippers to carry excess inventory, stretching transit times and disrupting inventory management globally.

Moreover, the transpacific eastbound trade is showing signs of an early peak season, stimulated by a 90-day pause in US–China tariffs, set to expire on August 14. This surge in demand is contributing to port congestion not only in Europe but also at major Asian and US ports like Shenzhen, Los Angeles, and New York.

A Global Warning: Asia and the US Feeling the Heat

Similar congestion trends are emerging in key Asian and US ports, with increasing numbers of container ships awaiting berth since April. Hamburg-based Hapag-Lloyd’s CEO, Rolf Habben Jansen, recently remarked that while some improvements are visible, it may take another six to eight weeks to bring European port delays under control.

In the US, economist Torsten Slok points out that the recent US-China tariff truce hasn’t yet triggered a significant rise in shipping volume, suggesting that tariffs remain a major uncertainty. US companies might be holding back shipments, waiting for further tariff reductions before ramping up imports.

EU-US Trade Disputes Amplify Shipping Uncertainty

Ongoing trade tensions between the EU and US add another layer of complexity. The unpredictability of tariff impositions and sudden threats hampers importers and exporters from making informed purchasing decisions. This uncertainty causes erratic demand patterns that drive delays and push freight rates upward.

Research from Oxford Economics highlights that countries like Germany, Ireland, Italy, Belgium, and the Netherlands are especially vulnerable due to their high exposure to US exports relative to GDP. Bloomberg Economics warns that a 50% tariff increase would likely cripple EU exports to the US, slashing them by more than half and severely disrupting trade flows.

Geopolitical and Security Risks Raise Costs Further

The shipping industry’s challenges are compounded by geopolitical risks. Many vessels are still avoiding the Red Sea due to ongoing attacks by Yemen-based Houthis, forcing them to take longer routes around southern Africa. This detour adds time and cost to global shipping, fueling freight rate hikes.

Hapag-Lloyd’s CEO also cautions against abruptly redirecting ships back through the Suez Canal. A sudden surge in traffic could overwhelm European ports and create "massive congestion," risking a collapse in port operations. Instead, a gradual restoration of Suez Canal traffic is recommended to ensure manageable flows and prevent further bottlenecks.

What Lies Ahead?

The combination of labor shortages, inland waterway challenges, tariff uncertainties, and geopolitical risks paints a worrying picture for global shipping in the coming months. With peak season demand already rising and trade wars threatening to spread maritime disruptions, the US, Asia, and Europe must prepare for tighter shipping capacity and higher costs.

Shipping lines like MSC Mediterranean Shipping Co. have already implemented rate increases and peak season surcharges to offset rising operational expenses. Shippers and supply chain managers must remain agile, adjusting inventory strategies and planning for longer lead times to mitigate the impacts of ongoing port congestion.

In conclusion, Europe’s shipping bottlenecks are not an isolated problem but a global warning sign. As delays mount and tariffs fluctuate, the intricate web of international trade faces mounting pressure   underscoring the need for coordinated action, improved infrastructure, and diplomatic efforts to stabilize global maritime logistics.