Continued Challenges Ahead: Europe's Shipping Delays Likely to Extend Through July

By Brendan Murray
May 25, 2025 (Bloomberg) — A recent report highlights escalating port congestion at major northern European hubs and beyond, indicating that ongoing trade tensions could further disrupt maritime operations in Asia and the US while driving up shipping costs.

In Bremerhaven, Germany, the wait for berth space surged by a staggering 77% from late March to mid-May. antwerp saw delays increase by 37%, while Hamburg experienced a rise of 49%.Other ports like Rotterdam and Felixstowe in the UK are also grappling with longer waiting times.

The primary issues causing these bottlenecks include labor shortages and low water levels on the Rhine River, which are substantially affecting barge traffic to inland areas. Additionally, a temporary rollback of tariffs on Chinese imports has intensified shipping demand between these two economic giants.

Drewry, a maritime consultancy based in London, noted that “port delays are extending transit times and complicating inventory management,” pushing shippers to hold more stock than usual. The transpacific eastbound trade is already showing signs of an early peak season due to this tariff pause set to end on august 14th.

Similar trends can be observed in Shenzhen as well as Los Angeles and New york City where container ships have been piling up since late April.

Rolf Habben jansen, CEO of Hapag-Lloyd AG from Hamburg, mentioned during a recent webinar that while there have been slight improvements at European ports lately, he anticipates it will take another six to eight weeks before things stabilize fully.However, Torsten Slok from apollo Management pointed out that despite the recent truce regarding tariffs between the US and China—reached nearly two weeks ago—there hasn’t been an expected surge in ship movements across the Pacific yet.

this situation raises questions about whether current tariffs on China remain excessively high or if american companies are simply biding their time for potential further reductions before increasing shipments.EU-US Trade Tensions
The fluctuating nature of US tariffs creates critically important challenges for both importers and exporters trying to manage their orders effectively; this unpredictability leads to erratic demand patterns which ultimately result in delays and increased costs for shipping lines—forcing them into raising freight rates.

Adding fuel to this fire was trump’s recent threat of imposing a hefty 50% tariff on EU goods starting June 1st—a move likely to shake up transatlantic trade dynamics significantly.

Oxford Economics highlighted how such policy uncertainty could impose additional burdens globally by complicating expenditure decisions. Countries like Germany, Ireland, Italy, Belgium, and the Netherlands may feel especially vulnerable due to their reliance on exports tied closely with GDP ratios involving US markets.

According to Bloomberg Economics’ latest analysis released Friday: “A new wave of tariffs could slash EU exports heading into America down drastically—potentially halving total EU export figures.”

As uncertainty looms over whether Trump will follow through with his threats or delay them like previous instances concerning China adds more pressure onto shipping logistics worldwide.

major carriers such as MSC mediterranean Shipping Co., recognized as one of the largest container lines globally have already announced upcoming rate hikes along with peak season surcharges effective June for cargo originating from Asia—a move likely leading spot rates higher amidst ongoing geopolitical unrest.

Cargo vessels continue steering clear from routes through Yemen’s Red Sea where attacks against ships began last year; rather opting for longer journeys around southern Africa connecting Asia with Europe & North America.

Navigating Congestion Challenges
During his webinar remarks Habben Jansen emphasized safety concerns regarding traversing through Red Sea waters suggesting any return towards regular Suez Canal operations would need careful management over several months—to prevent overwhelming port capacities all at once.

“If we were suddenly able shift those vessels back via Suez overnight—it would create massive congestion across numerous ports,” he stated adding: “Our strategy must involve gradual adjustments ensuring no collapse occurs within our port systems because ultimately it serves no one’s interests.”

©2025 Bloomberg L.P.
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