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.
Container Port Congestion Statistics: June 2024
53 of 89 analyzed container ports (60%) reported increased port congestion between May and June. This is a clear sign of the pressure being felt by global supply chains amidst the Red Sea crisis and surging demand for container shipping in what is being characterized by many in the industry as a “junior-COVID” environment.
Note: Port congestion is calculated as the sum of average vessel anchor and berth times during the specified time period. Download your free copy of our container port congestion report for all the data.
Most Congested Ports in June 2024
Durban continues to suffer from extreme congestion as a result of operational issues and equipment shortages.
Despite reducing port congestion by over two days, Ningbo-Zhoushan remains the second most congested in our index – a position it is likely to remain in as the world’s busiest container port continues to cope with increased demand.
Charleston continues its climb up our index of the most congested ports, jumping to third position after being ranked sixth in May and 40th in April. The agreed reopening of the Leatherman terminal following a protracted labour dispute is expected to help reduce wait times for vessels at the port.
Chittagong and Los Angeles follow with Long Beach ranking sixth as the only other port in our index with congestion in excess of three days. Manila, Vancouver, Jebel Ali and Houston round out the top ten congested ports in June.
Ports Facing Worsening Congestion in June 2024
Durban’s struggles have manifested once again with port congestion reaching a new high for 2024 of nearly 10 days, having previously been as high as 8.5 days in January.
Worsening congestion in Charleston, Port Kelang and Chittagong may be indicators of increasing congestion associated with surging demand and vessel bunching associated with the Red Sea crisis.
Ports Experiencing Reduced Congestion in June 2024
Ningbo-Zhoushan remains severely congested despite significant improvements and after ranking third in our index in May. Jebel Ali (UAE) drops to ninth most congested port in our June index.
The Port of Vancouver also saw its best month of the year, recording average congestion of 2.75 days, down from a peak of 6.27 in February.
Lomé (Togo) seems to be recovering from worsening port congestion earlier in the year that was likely linked to its growing role as a transshipment port for MSC amidst the Red Sea crisis.
Asian Port Congestion
Across 16 surveyed ports in China, port congestion averaged 1.11 days in June. While Ningbo-Zhoushan remains atop the list of congested ports in Asia, only two other Chinese ports (Rizhao and Jinzhou) in our index experienced average port congestion in excess of 24 hours last month. Of the eight Chinese ports reporting month-over-month increases in congestion, the largest increase was less than four hours.
In SE Asia and the Indian subcontinent, however, 71% (10 of 14) of analyzed ports reported worsening month-over-month port congestion in June. However, only three ports reported congestion increases of more than five hours: Port Kelang (+21 hours), Chittagong (+10 hours) and Tanjung Priok (+5 hours). In another sign of the pressure being felt by global supply chains, June port congestion in Manila averaged 2.95 days, up nearly 70% from January.
Congestion levels in Japan and South Korea remain low and largely unchanged.
North American Port Congestion
Charleston saw port congestion surge above five days in June. On the North American west coast, Los Angeles (+9 hours), Long Beach (+8 hours) and Seattle (+5 hours) also saw port congestion worsen in June. The Port of Vancouver showed the most improvement in the region as it saw average congestion drop below three days for the first time since October 2023.
European Port Congestion
At European ports, 10 of 18 analyzed ports reported increased congestion in June. Antwerp (+10 hours) and Le Havre (+9 hours) both saw combined vessel anchor and berth time increase by more than 25% month-over-month.
Mitigating the Impact of Congestion on Your Supply Chain
Port congestion can't be entirely avoided, but there are some steps that can be taken to mitigate and minimize its impact on your supply chain.
- Leverage data from visibility platforms to identify problem ports, then seek out alternatives within the same country or region that can be used to reroute your goods. For example, if the data shows that Charleston and Savannah on the US East Coast are congested or expected to be congested in the near future, try using New York or Baltimore.
- Check for ports in neighboring countries or regions that may have trucking or rail links that allow you to bypass congested ports. For example, cargo from Middelburg in South Africa can be shipped out of Maputo in Mozambique quicker than railing it to Durban.
- Monitor global and local congestion levels to understand the trend and where possible, adjust production schedules to protect against congestion related delays.
- With global congestion becoming a more persistent issue, consider using alternative local suppliers who may be closer to your manufacturing/distribution centers for smaller orders. Even if the costs are higher, when considering the delays and uncertainty of receiving the orders in time, you could benefit.
- Consider rail and road routes as an alternative to ocean container shipping where possible.