A trade lane (or trade route) refers to a specific pathway along which goods are transported between two or more locations, typically across international borders. Trade lanes are established based on the flow of goods and the economic relationships between countries or regions. They encompass both maritime and air routes and play a crucial role in global supply chains by facilitating the movement of goods and fostering international trade.
Transit time refers to the duration it takes for goods or shipments to travel from their origin to their destination. It is a crucial metric in supply chain and logistics management, as it directly impacts delivery schedules, inventory levels, and customer satisfaction. Transit time encompasses the entire journey of a shipment, including transportation, handling, and processing at various checkpoints along the route.
Transloading refers to the process of transferring goods or cargo from one mode of transportation to another, typically from one type of truck or railcar to another, or from rail to truck and vice versa. This logistical practice is often employed to optimize transportation routes, reduce costs, and improve overall efficiency in supply chain operations.
A Transportation Management System (TMS) is a specialized software solution designed to streamline and optimize transportation and logistics operations within supply chains. It provides functionalities to effectively manage and control the movement of goods from origin to destination.
Transportation lead time refers to the duration it takes for goods to be transported from the point of origin to the final destination. It encompasses the time required for transportation activities, including loading, transit, and unloading, across various modes of transport such as road, rail, air, or sea.
A transshipment is the process of transferring goods from one transportation vehicle or vessel to another during their journey from origin to destination. It typically occurs at intermediary points along the supply chain route, where cargo is transferred between different modes of transportation, carriers or vessels.
Twenty-foot Equivalent Unit (TEU) is a standard unit of measurement used in the shipping industry to quantify the cargo-carrying capacity of container vessels. It represents the volume of a standard twenty-foot-long shipping container.
An Ultra Large Container Vessel (ULCV) is a massive container ship used on major trade routes, capable of carrying over 14,000 TEUs.
Vendor Managed Inventory (VMI) is a supply chain management strategy where the supplier or vendor takes responsibility for managing the inventory levels of their products at the customer's or retailer's location. In this arrangement, the vendor monitors the inventory levels based on agreed-upon criteria such as sales data or inventory levels, and initiates replenishment as needed.
Verified Gross Mass (VGM) is a term used in the shipping industry to refer to the total weight of a packed container, including its contents and packaging materials. It is a crucial requirement mandated by the International Maritime Organization (IMO) under the Safety of Life at Sea (SOLAS) convention to enhance safety in maritime transportation.
A floating structure with its own mode of propulsion designed for the transport of cargo and/or passengers. In the Industry Blueprint 1.0 "Vessel" is used synonymously with "Container vessel", hence a vessel with the primary function of transporting containers.
A vessel sharing agreement (VSA) is a cooperative arrangement between shipping companies that allows them to share space and resources on vessels for specific routes.
Vessel bunching refers to the situation where multiple vessels arrive at a port simultaneously or within a short period, leading to congestion and delays. This clustering of vessels can overwhelm port facilities, causing extended wait times for berthing, loading, and unloading operations.
A vessel call sign is a unique identifier assigned to a ship for radio communication purposes. It is used to distinguish the vessel from others in maritime communication systems, including VHF radios and satellite communications.
A vessel omission (sometimes called a port omission) occurs when a scheduled vessel does not call at a planned port during its voyage. This disruption means that the vessel skips the port entirely, which can impact the transportation and delivery schedules of goods.
In cargo shipping, vessel rotation is the planned sequence of port calls that a shipping vessel follows on its route to optimize cargo loading and unloading operations.
The timetable of departure and arrival times for each port call on the rotation of the vessel in question.
A journey by sea from one port or country to another one or, in case of a round trip, to the same port.
Warehouse utilization is a logistics metric that refers to the effective use of available warehouse space for storing goods and inventory.
Order for specific transportation work carried out by a third party provider on behalf of the issuing party.
Logistics yard management refers to the process of overseeing and controlling the movement of trucks, trailers, containers, and other vehicles within a yard or distribution center. This includes tasks such as scheduling, tracking, and coordinating the arrival, departure, and storage of these vehicles.
The Busiest Container Ports in the World
The global economy is heavily reliant on maritime trade, with container ports acting as vital hubs for international commerce. The efficiency and capacity of these ports are essential to maintaining the flow of goods across the world. Among them, a select few stand out for their impressive container throughput volumes.
Where are the world’s largest ports?
Nine of the top 10 container ports in the world are located in Asia, with seven in China. This reflects the region’s dominant role in global manufacturing and trade, driven by its extensive production networks and significant investments in port infrastructure and technology.
Top 10 Container Ports by Annual TEU Throughput
According to the Lloyd's List 2023 One Hundred Ports Analysis, the following are the top 10 container ports by annual TEU throughput.
Collectively, these 10 ports handled over a quarter billion (273M) TEUs in 2023. This represents 42% of total container volumes handled by the world's 100 busiest ports –the 11th to 100th busiest ports collectively handled 372M TEUs over the same time period.
1. Shanghai, China
Shanghai remains the world’s busiest container port, handling an astonishing 47,303,000 TEU in 2023. As a key gateway for China’s extensive manufacturing sector, Shanghai's port continues to expand its capacity to accommodate increasing volumes.
2. Singapore
Singapore retains its position as the second-busiest container port globally, with an annual throughput of 37,289,600 TEU. Strategically located on the key shipping routes between Asia and Europe, Singapore is a pivotal hub for transshipments.
3. Ningbo-Zhoushan, China
With an annual throughput of 33,351,000 TEU, Ningbo-Zhoushan ranks third on the list. Its strategic location along China’s eastern coast and robust infrastructure development make it a critical hub for international trade.
4. Shenzhen, China
Shenzhen, known for its rapid economic growth and proximity to Hong Kong, handled 30,036,200 TEU in 2023. The port serves as a significant gateway for goods flowing in and out of China’s manufacturing heartland.
5. Qingdao, China
At fifth place, Qingdao port achieved a throughput of 25,670,000 TEU. Qingdao is a crucial port for China’s Belt and Road Initiative, connecting trade routes across Asia, Europe, and Africa.
6. Guangzhou, China
The Guangzhou port processed 24,857,600 TEU in 2023, securing its position as the sixth busiest port globally. It serves the Pearl River Delta, one of China's most economically vibrant regions.
7. Busan, South Korea
South Korea’s Busan port is the seventh busiest globally, with an annual TEU volume of 22,078,195. It is a key transshipment hub for Northeast Asia, connecting regional markets to global supply chains.
8. Tianjin, China
Tianjin handled 21,021,300 TEU in 2023, ranking eighth. The port serves as the maritime gateway to Beijing and the Bohai Economic Rim, making it a vital component of China's trade network.
9. Hong Kong, China
Hong Kong’s port, once the busiest in the world, still ranks among the top ten, with a throughput of 16,685,000 TEU. Despite facing competition from nearby ports, it remains an important logistics hub.
10. Rotterdam, Netherlands
As Europe’s largest port, Rotterdam handled 14,455,000 TEU, making it the tenth busiest port globally. It serves as a critical gateway for goods entering and leaving Europe, particularly for trade with Asia.
Shanghai: The World’s Busiest Container Port
Shanghai has maintained its position as the world's busiest container port since taking the top spot from Singapore in 2011. Handling a staggering 47,303,000 TEU in 2023, the port has continued to grow its capacity and efficiency. Several factors contribute to its dominance.
Firstly, Shanghai's strategic location at the mouth of the Yangtze River provides access to one of China's most populous and economically dynamic regions. This makes it a natural hub for both imports and exports. Secondly, the port's continuous investment in state-of-the-art infrastructure, including automated terminals and deep-water berths, has enhanced its capacity to handle large vessels and a high volume of containers efficiently.
Moreover, Shanghai's port is a critical component of China's Belt and Road Initiative, linking it with ports across Asia, Europe, and Africa. The port's integration with the Yangshan Deep-Water Port, connected by the world’s longest sea bridge, has further solidified its role as a global shipping powerhouse.
The Fastest Growing Ports in the World
The fastest-growing ports in the world are primarily found in Asia, the Middle East, and Africa, driven by rapid economic development, rising trade volumes, and significant infrastructure investments. Ports such as Guangzhou in China and Jebel Ali in the UAE have seen substantial growth due to their strategic locations and expanding trade networks. In Africa, ports like Tanger Med in Morocco are emerging as critical hubs, benefiting from investments in modernization and increasing trade between Europe and Africa. Indian ports have also recorded strong year-on-year growth coming out of the pandemic.