Global Port Congestion Hits 4.3 Million TEU, Surpassing COVID Peak as Panama Cuts Slots

Estimated reading time: 4 minutes

Container shipping faces its most severe capacity squeeze since 2022, with typhoon-driven bottlenecks in East Asia, Red Sea rerouting, and Panama water restrictions converging to keep freight rates near record highs.

Global port congestion has surpassed pandemic-era absolute peaks, with 4.3 million TEU of vessel capacity tied up in queues worldwide, according to Linerlytica. That exceeds the previous record of 4 million TEU set during the COVID-19 crisis. However, context tempers the headline: the current backlog represents 12.6% of the 34.4 million TEU global fleet, whereas the 2022 peak consumed 15.7% of a smaller 25.3 million TEU fleet.

Sea-Intelligence, using a different methodology, estimates that delays are currently removing around 1.7 million TEU of effective capacity from active service. Schedule reliability remains stuck at 60–65%, with late vessels arriving an average of 5 to 5.5 days behind schedule, well above the pre-pandemic norm of 3–4 days.

Typhoon Dolphin, the third major storm to strike China in five weeks following Bavi and Noul, made landfall near Ningbo on August 9, 2026, forcing terminal closures on August 7–8. The disruption has been so concentrated that 2.4 million TEU of containership capacity was effectively immobilized in North Asian port congestion in the storm’s immediate aftermath, Linerlytica reported.

Current port status as of late August:

• Shanghai: Vessel delays of 3–12 days at Yangshan terminals. Recovery is ongoing but backlogs persist. Some carriers are omitting Shanghai port calls entirely to protect schedule integrity.
• Ningbo: Terminal operations have resumed, but vessel bunching and yard congestion continue to disrupt berthing windows.
• Shenzhen / Hong Kong: Congestion is spreading southward, with delays reported across Pearl River Delta gateways.

The cascading delays have forced strategic reversals. Maersk and CMA CGM have rerouted some services back through the Red Sea (Bab el Mandeb) — despite the ongoing Houthi threat — to free up capacity and compensate for Asian schedule slippage.

The Shanghai Containerized Freight Index (SCFI) climbed to 3,409.63 points as of August 21, 2026, up 54.39 points week-on-week. The index is now 156% higher than when the Iran conflict began, according to Linerlytica calculations.

Benchmark spot rates as of mid-August:

• Shanghai–US West Coast: ~$7,000+ per 40ft
• Shanghai–US East Coast: ~$10,000+ per 40ft, having passed the five-figure mark
• Asia–North Europe: $4,300–$4,900 per FEU, showing downward bias but supported by supply constraints

The S&P Global Platts Container Index hit $7,565 per FEU on August 21, its highest level this year, driven by Asian port delays, acute space shortages, and Panama restrictions.

The Panama Canal Authority (PCA) announced on August 20, 2026, that it will reduce daily transit slots due to below-expected rainfall and strengthening El Niño conditions.

New slot allocations:

Table

The PCA is also reorganizing auction slots into four cargo-type groups to promote equitable allocation. Carrier surcharges are already landing:

• CMA CGM: $500/TEU Panama Canal Adjustment Factor (effective Sept 10)
• Hapag-Lloyd: $130/TEU (effective Aug 15)
• MSC: $149/TEU (effective Sept 12)
• ONE: $150/TEU (effective Aug 10)

Auction prices for transit slots have surged, with Neopanamax southbound slots reaching up to $4 million.

India is experiencing acute strain. Strong export demand, restricted carrier capacity, equipment shortages, and monsoon-related port congestion at JNPT/Nhava Sheva and Mundra are driving India–US East Coast spot rates to $10,000–$12,000 per 40HC. Maersk has announced peak season surcharges rising to $7,500 per 40HC, effective September 1.

In Europe, Bremerhaven experienced a 24-hour strike on August 17, while Hamburg and Rotterdam report elevated yard utilization of 75–90%. In the Middle East, the Strait of Hormuz remains effectively closed; most major carriers have paused bookings to Upper Gulf destinations, with services rerouted via Jeddah and Omani ports.

The containership charter market remains tight, with scarce tonnage and strong demand sustaining elevated rates across vessel sizes, according to Harper Petersen assessments dated August 21. With the Panama Canal cutting slots in September and El Niño intensifying, industry analysts expect the capacity squeeze to persist through the peak season. The convergence of weather, geopolitics, and infrastructure constraints leaves shippers with limited alternatives and carriers with pricing power.