Container Port Congestion Spreads Globally: Causes – Developments – Impacts on Vietnamese Import-Export Enterprises

Tracking from May 2025 | Phoenix Logistics Insight

Container port congestion is spreading from Europe to the US and China, increasing the risk of supply chain disruption and pushing global logistics costs to new highs – and Vietnamese import-export businesses are not out of the picture.

1/ What is container port congestion?

Container port congestion is a backlog of cargo at seaports that causes ships to wait longer to dock, longer delivery times, and soaring logistics costs. The physical manifestations include: a series of ships lining up offshore, a shortage of empty containers, backlogs of cargo at ports, and disrupted shipping schedules.

For example, at the Port of Singapore, the world’s second-largest container hub, vessel waiting times now range from 12 to 36 hours, with an average of 1.82 days over the past week. Similar trends are also seen in Shenzhen, Los Angeles, and New York, where the number of vessels waiting to anchor has increased significantly since late April 2025.

Nguồn: Bloomberg

2/ Why is congestion spreading from Europe to the US and China?

The main reason comes from a combination of short-term factors and long-term structures.

• New element:

Strikes in Europe: Labor shortages due to strikes at major ports in Northern Europe have reduced cargo handling efficiency (the strike by port workers in Hamburg (Germany) and Rotterdam (Netherlands) has caused the backlog to reach tens of thousands of containers at each port)

Nguồn: Dwery

US-China trade policy: In the US, the policy of suspending the imposition of 145% tariffs on Chinese goods until August 14, 2025 has encouraged Chinese enterprises to boost exports ahead of schedule. This has put great pressure on trans-Pacific routes and import ports such as Savannah, New York and Long Beach. In contrast, China has also increased controls and imposed anti-dumping duties of 74.9% on some goods from the US and EU, causing two-way trade volumes to increase sharply in a short period of time.

Nguồn: Bloomberg

Low Rhine River Water Levels: Low water levels on the Rhine River - a vital inland shipping route - in Europe are hampering barge transport of goods, causing congestion at inland ports.

Rerouting to the EU: In addition, due to tensions in the Red Sea, many shipping lines have rerouted via the Cape of Good Hope – adding 10–14 days to the journey. This puts a lot of pressure on new destinations such as Singapore, Port Klang (Malaysia) and ports in southern China.

• Inherent factors:

Container imbalance: China attracts large amounts of empty containers for exports, leading to shortages in other countries, including Vietnam.

Limited port capacity: Many ports, especially in Asia, have not been able to cope with the sudden increase in cargo volume. Ports such as Tanjung Pelepas (Malaysia) and Cat Lai (Vietnam) often face shortages of berths and handling equipment, exacerbating congestion.

3/ Impact on Vietnamese businesses

First, extended delivery times are disrupting supply chains. Shipping routes to Europe and the US, Vietnam’s main export markets, are currently delayed by 7-10 days as ships wait to dock. This is especially true for time-sensitive industries. For example, the textile and garment industry, which accounts for 16% of exports in 2024, faces the risk of losing seasonal fashion orders, while the seafood industry, which accounts for 8% of exports, is at risk of fresh product spoilage.

Second, rising logistics costs erode competitive advantage. According to Sea-Intelligence, ocean freight rates from Asia to the US are expected to increase by 70% compared to 2024 and by more than 110% compared to pre-pandemic levels (Sea-Intelligence, 2025). Shipping lines such as MSC will impose peak season surcharges starting in June 2025, ranging from $500-1,000 per 20-foot container. For small and medium-sized enterprises (SMEs), which have low profit margins (5-10%), rising logistics costs force them to raise their selling prices, but this may cause them to lose orders to competitors from Thailand or Bangladesh.

Thông báo từ MSC

Third, the shortage of empty containers is a major challenge. With a large number of containers concentrated in China, Vietnamese businesses, especially small businesses, find it difficult to compete to rent containers. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), some businesses in the Mekong Delta had to delay 30% of their export orders to the EU in May 2025 due to a lack of containers (VASEP, 2025). Empty container rental prices in Vietnam have also increased by 20-30% compared to the beginning of the year, putting financial pressure on key export industries.

References:

Drewry Shipping Consultants (2025). Global Port Congestion Report.

Sea-Intelligence (2025). Freight Rate Trends Analysis.

VASEP (2025). Vietnam Seafood Export Report.

USTR (2025). Trade Policy Updates.