News / Carriers eye major rate hikes for July, even as port congestion strands 3.4m teu

Photo: © Maria Argutinskaya

Congestion in European and Asian ports has kept 3.4m teu of box ship capacity queued, supporting long-haul freight rates as liner operators prepare to hike rates again in July.

NNR Global Logistics said in Shanghai, the world’s busiest port, strong demand for solar panels and the early peak season had resulted in delays of four to five days.

Schedule reliability in Singapore, the second busiest port, is “sub-optimal”, due to disruptions across global shipping networks, and in Taiwan, congestion and overbooking in Taipei and Keelung ports increased as exporters front-loaded to beat the expiry of the 10% global US tariffs on 24 July.

NNR said: “Cargo space remains extremely limited, with vessel waiting times extending to between three and seven days.”

India’s Ligi Logistics said: “Space availability is becoming increasingly constrained across several export corridors. Nhava Sheva Port congestion continues worsening, with ongoing vessel bunching, rail delays, trucking shortages, terminal congestion, and yard density pressure.

“Schedule reliability remains below normal industry standards, requiring additional shipment planning buffers. Carriers continue implementing short validity periods on spot quotations due to volatile market conditions.”

In Europe, Antwerp continues to work through accumulated backlogs, while Hamburg faces infrastructure constraints. The Kohlbrand Bridge bottleneck affects hinterland transportation, while rail access to the Altenwerder Container Terminal is still suspended.

Linerlytica says in its report today that Asia-North Europe capacity remains very tight, exacerbated by Maersk Line’s downsizing of its NE3/AE3 service that cut 5,000 teu in weekly capacity.

The consultancy said: “Capacity in July could also be affected by more ad hoc blank sailings due to worsening port congestion across both Asian and European ports over the past week even though carriers are planning full sailing schedules for July.”

On Friday, the Shanghai Containerised Freight Index showed the Shanghai-North Europe rate rose 3% from the previous week, to $3,158 per teu.

Linerlytica added: “The positive momentum in the container market continues with the mid-June rate hikes sticking without rollbacks in the strongest rate ascent since the Red Sea diversions started at the end of 2023.

“Carriers are gearing for another major rate hike in July, with increases as high as $5,000 per 40ft on certain routes. Cargo demand is now clearly outpacing the availability of vessel slots with the peak season in full swing.”

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