Port congestion is one of the most consistent challenges facing importers, exporters and retailers across the globe. Delays at ports create ripple effects that impact downstream supply chains, leading to increased costs, missed deadlines and unhappy customers.
But all is not lost. By understanding what causes port congestion and implementing strategies to minimise its impact, your business will be in a better position to navigate choppy waters.
What is port congestion?
Port congestion occurs when a port becomes overcrowded, preventing ships from docking to load or unload cargo. It creates a bottleneck where ships must wait at anchor and containers accumulate in port faster than they can be collected and distributed. In some cases, ships must queue offshore for days or weeks at a time.
The impact reverberates throughout the supply chain. Custom delays increase, shipping schedules go out the window and containers can miss planned connections.
Why does port congestion occur?
Multiple factors can combine to create port congestion, including high cargo volumes, labour shortages and natural disasters.
High cargo volumes are one of the most common causes of port congestion, particularly during peak seasons. The continuing growth of eCommerce and just-in-time manufacturing practices has significantly increased the volume of international shipping, which means some ports are now ill-equipped to handle the increased load.
The size of modern container ships can also present problems. Most ports were designed for smaller vessels, but today’s mega-ships carry thousands of containers at once. It’s a cost-effective approach for shipping carriers, but it can lead to port congestion and create backlogs.
Labour shortages and industrial action are another cause of port congestion. Strikes by dockworkers, truck drivers and customs officials have led to significant slowdowns and even complete halts at major hubs. Holiday closures and seasonal staffing reductions have compounded these labour disruptions.
Customs and regulatory delays may cause port congestion in extreme circumstances. This was more common in the immediate aftermath of Brexit, but length inspections can still delay cargo movement.
Finally, weather disruptions and geopolitical issues are playing an increasingly disruptive role. Extreme weather events, including typhoons, hurricanes and seasonal flooding, have forced temporary port closures and damaged infrastructure. Additionally, tensions in regions like the Red Sea and evolving regulations have increased uncertainty for international shipping.
How does port congestion impact supply chains?
The consequences of port congestion are felt by everyone, including the end customer.
Delivery delays are the most apparent and immediate impact. Congestion can result in substantial delays in cargo delivery, impacting retailers’ ability to fulfil customer orders on time.
If you operate a just-in-time inventory system, even a few days of delay can halt entire production lines. This can also lead to inventory shortages and an inability for brands to replenish stock. Stockouts lead to lost sales and unhappy customers, both of which can have a negative impact on a retailer’s bottom line.
Freight costs can also increase significantly with congestion. Shipping companies often impose congestion surcharges, which drive up costs for freight forwarders and their clients. Demurrage and detention fees can accumulate rapidly if containers are stuck at ports.
5 strategies to minimise the impact of port congestion
Whilst most port congestion is unavoidable, you can implement several strategies to reduce risks and maintain supply chain resilience.
Build in buffer time to your shipping schedules
Incorporating buffer time into shipping schedules can help manage the unpredictability of port congestion. Similar to buffer inventory, which gives retailers a cushion to avoid stockouts, a time buffer acts as a cushion against unexpected delays and allows for flexibility in the supply chain. By anticipating potential hold-ups, you can maintain smooth operations and ensure that shipment deadlines are met despite congested ports.
Diversify your port strategy
Redistributing cargo to less congested ports is an effective way to alleviate pressure on major ports. If DP World London Gateway is experiencing significant congestion, rerouting cargo to a nearby port like Felixstowe can expedite the unloading process and ensure timely delivery. Alternative ports may also offer better capacity and faster processing times for urgent shipments.
Optimise your documentation and customs clearance processes
Ensuring customs documentation is accurate and submitted well in advance prevents delays through customs. Errors in paperwork can lead to significant hold-ups, particularly during peak periods when processing times are longer. Pre-lodging customs declarations before goods physically arrive at UK ports significantly speeds clearance.
Leverage technology for real-time visibility
Advanced tracking systems help companies monitor shipments in real time, identify potential delays and take immediate action to keep things on track. For example, if you notice that shipments are being delayed at one port, you can consider sending future shipments to an alternative location.
Build strong carrier and freight forwarder relationships
Maintaining open and frequent communication with carriers and port authorities keeps all parties informed about potential delays, alternative options and changes in regulations or procedures.
Freight forwarders can quickly find alternative solutions if a port becomes congested or a shipment faces delays. Through their industry connections, like membership to the International Air Transport Association, they can reroute shipments to another port, minimising delays and keeping the supply chain moving.
The key is not waiting for congestion to impact your operations before taking action. By implementing these strategies now and partnering with a logistics provider who offers flexibility, technology and expertise, you can stay ahead of disruptions and keep your supply chain moving smoothly, no matter what challenges emerge at UK ports.
Avoid delays with Pro Carrier
Navigating port congestion requires expertise, flexibility and comprehensive supply chain solutions. It also helps to have guidance from an expert third-party logistics provider like Pro Carrier.
Our flexible freight solutions, spanning sea, air, and road transport, let you ship anywhere in the world with full transparency and tracking. And because we combine cutting-edge technology with exceptional customer service, we’ll do everything possible to deliver goods on time at a competitive price.
Take Horizon, our all-in-one supply chain platform. It provides complete visibility into your shipping schedule, keeping you informed throughout the process. You can monitor progress and respond proactively to potential delays. Our team also completes all necessary paperwork two weeks in advance to minimise customs delays when your goods arrive at port.
For more information on shipping with Pro Carrier, read our case studies or speak to an expert for a free, no-obligation quote.