Port congestion and slowed container turnover increase your logistics costs. Find out why and how to anticipate it.
Why have congestion and slow turnover become a global logistical bottleneck?
In a world where the capacity of ships continues to grow relentlessly (the delivery of mega-ships with more than 20,000 TEU is becoming increasingly common), many port infrastructures are unable to keep up. As maritime transport experts, at AGC Newtral we have detected that operational efficiency is eroding: key ports face bottlenecks, and this slowness directly and negatively impacts your supply chain.
What factors explain this widespread operational slowness?
The first factor is clear: the mega-ship. The terminals in Northern Europe and Northeast Asia (for example, Shanghai, Busan) struggle to handle vessels that concentrate massive volumes in a few calls. This concentration requires greater quay capacity, cranes, yards, and pickup trucks. The use of “mega-ships” demands a level of efficiency that many ports cannot achieve.
The second factor is the rotation of equipment (empty containers, return transports). The return times of empty containers to the origin (Asia) have lengthened to up to 4 weeks after unloading, compared to the “typical 7-10 days.” This delay consumes the effective stock of equipment at the origin and forces the mobilization of additional containers or the payment of surcharges for shortage.
The third factor: port congestion. Recent data show that in certain Asian ports, the average waiting time for a ship until “gate-out” is approximately 10 days. These delays generate knock-on effects: trucks take longer to pick up containers, the yard reaches saturation, cranes have to wait, and the next port call is delayed.
What are the implications of this turnover crisis for those who import or export?
For you who export or import international goods, the impact is not trivial. Delivery times increase. Capital remains tied up longer in transit or already unloaded but not yet collected. Freight costs may rise, as well as associated costs: delayed storage, surcharges for delays, contract penalties. Additionally, uncertainty makes it more difficult to plan inventory, calculate lead times, or ensure minimum service levels.
If you rely on routes that pass through congested ports, you are assuming a hidden (and growing) risk that does not appear on your base freight rate but does affect your TCO (Total Cost of Operation). At AGC Newtral, we believe it is not enough to just know the transportation invoice line: bottlenecks must be mapped, realistic buffers incorporated, and routes diversified if necessary.
What do we suggest doing to anticipate and mitigate this problem?
- Select the port considering operational efficiency. Use reports such as the “Global Port Congestion Analysis” to avoid hubs with significant productivity drops. Prioritize ports that have invested in automation and digitalization (for example, Charleston, USA; Singapore; Port Klang).
- Plan for extended lead times. Assume that equipment turnover times will be longer than usual (add 14 or more days of buffer). This allows you to reduce the element of surprise when delays occur.
- Get ready for the ‘container discard’ (rolling) during peak seasons: book well in advance and maintain a safety stock to prevent your cargo from being held at the port.
- Negotiate contingency clauses with your freight forwarders and shipping lines: port call cancellations, container delays, vessel deviations… You should transfer part of the risk to the logistics provider or at least have visibility of the impact.
- Maintain digital visibility over the status of your cargo and the ships transporting it. A delay in the ship can result in financial costs, and early knowledge allows you to react (reroute, activate a ‘plan B’) and reduce the impact on your supply chain.
Conclusion: it is not just a delay, it is a strategic cost
La eficiencia operativa y la rotación de contenedores ya no son problemas menores para las cadenas globales de suministro: son fuentes de coste e incertidumbre estructural. En AGC Newtral creemos que las empresas que integren este análisis en su estrategia logística (y no lo dejen como algo táctico) estarán mejor posicionadas para mantener la competitividad en un entorno cada vez más complejo. Si la infraestructura tarda en ponerse al día, tu cadena debe adaptarse antes que reactuar. Actuar ahora es la clave.
