Port Congestion: What Causes Ports to Slow Down

It’s clear as day that global trade, the demand has been growing in recent years. Port Congestion, refers to the time where vessels/ships spend waiting to load or unload at the port, but stuck. It happens when a port is unable to handle the volume of cargo ships requiring berths for loading and unloading. Modern port terminals can accommodate massive freight shipments, with carriers arriving carrying 10,000 to 20,000 containers (TEUs). However, container ships often find themselves waiting at anchorage for an available berth.

So, What Causes of Ports Congestion?

Port Infrastructure Overload

Port infrastructure is unable to deal with the increasing number of containers they are receiving. There is a lack of available space, resources, crew and equipment. With many countries receiving more imports than exports, ports are struggling with cargo management and idle containers. The backlog is made worse by not having enough trucks, chassis (used to tow containers), and railways, which slows down how fast cargo can move from ports to inland areas.

Incomplete Digitalization Within the Sector

There are still ports around the world that have not fully embraced digitization or digitalization. While many ports have made significant progress in adopting digital technologies to enhance their operations, there are still varying exceptions. Some ports may face challenges in fully implementing digital solutions due to infrastructure limitations and funding constraints. 

Global occurrence 

One of the global occurrences recently would be COVID19 pandemic, which still remains an active issue. As consumers around the world increased their online orders, ports experienced heightened congestion due to the unexpected occurrence.

Even before the pandemic, ports were facing congestion due to the rising global demand and inadequate digitalization. The maritime logistics sector lacked transparency, and port infrastructures were outdated. Consequently, this surge pushed many ports and shipping companies beyond their capacity, with the average shipping rate increased higher than pre-pandemic levels.

This congestion a has wide impact on the international supply chain. The logistics supply chain usually involves many parties, and a delay can implicate the. End consumers experience significant shipping delays that impact their businesses operation involving inventories or equipment. Shipping companies incur additional fees or costs due to these prolonged delays.

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