Asian Port Congestion Rises, Realigning Supply Chains
Port congestion is reportedly rising again in key Asian hubs, including Qingdao, Porbandar, and Fukui, due to seasonal demand and vessel bunching. In response to policy uncertainty and shifting demand, global exporters are diversifying routes, causing a surge in intra-Asia trade. China has maintained its trade momentum by adjusting container flows to navigate global headwinds.
- The congestion in Qingdao is exacerbated by ongoing dredging work at the Qianwan Container Terminal, with vessel waiting times averaging around 1.8 days and container yard utilization at 85-95%. Some yards have restricted the return of laden containers to only those for vessels scheduled to call within a very short window. - "Vessel bunching," where multiple ships on the same weekly service arrive in a narrow timeframe, is a primary driver of the current congestion. On the Asia–North America West Coast route, this phenomenon now affects 20-25% of shipping capacity, a significant increase from the pre-pandemic norm of 5-15%. - The pre-Chinese New Year rush is compounding delays, with the entire export process from factory to vessel in China now taking 10-14 days, compared to the typical 5-7 days under normal conditions. This annual surge traditionally creates a compressed shipping window before factories close for the holiday period. - The surge in intra-Asia trade is a direct result of supply chain diversification, often called the "China Plus One" strategy. As U.S. container imports from China fell 28% year-over-year in 2025, imports from countries like Indonesia and Thailand grew by 34% and 28%, respectively. - In response to shifting trade patterns, China's trade with developing economies (South-South trade) grew by 8% in 2025, with double-digit volume increases in trade to Latin America, the Middle East, and Africa. This has led ocean carriers to upgrade services and cascade larger vessels to these alternative routes. - Beyond China, other Asian hubs are also experiencing significant operational friction. Malaysia's Port Klang has extended vessel wait times due to yard congestion, while delays in Vietnam have spread from Cat Lai to the Cai Mep terminal. - Retailers are adapting to this environment by redesigning how goods flow across Asia, utilizing regional inventory positioning in Free Trade Zones (FTZs) in locations like Singapore and Malaysia to serve multiple markets with shorter transit times.
