Global port congestion keeping 1.7m teu of capacity out of the market
Persistent port congestion is effectively removing 1.7m teu of container shipping capacity from the global ...
WTC: FOCUS ON SAVINGS ON BEHALF OF CLIENTSWTC: EARNINGS UPDATE VW: CRISIS UPDATEVW: LOOKING AHEADMAERSK: CATCHING UP RXO: SPOT RATES STRENGTHWTC: AHEAD OF EARNINGS CHRW: LACK OF MOMENTUM JBHT: HEALTHY CORRECTION VW: NEW AI PARTNERSHIPKNIN: RIP KMKMAERSK: ANOTHER UPGRADE DSV: STILL DOWN
WTC: FOCUS ON SAVINGS ON BEHALF OF CLIENTSWTC: EARNINGS UPDATE VW: CRISIS UPDATEVW: LOOKING AHEADMAERSK: CATCHING UP RXO: SPOT RATES STRENGTHWTC: AHEAD OF EARNINGS CHRW: LACK OF MOMENTUM JBHT: HEALTHY CORRECTION VW: NEW AI PARTNERSHIPKNIN: RIP KMKMAERSK: ANOTHER UPGRADE DSV: STILL DOWN
It took just six months for Jebel Ali to crash out of the top 30 container ports ranks, after more than two decades among the 10 busiest gateways in the world, as the impact of the US/Israel war on Iran continues.
Alphaliner’s half-year assessment of box port standings is bleak reading for gateways on the west side of the Persian Gulf, with Abu Dhabi’s Khalifa dropping out of the top 50, having occupied 32nd place in the list.
“Renewed disruption in Hormuz, which resulted in a near shutdown of the waterway from March onwards and only a partial and unstable reopening in June saw volumes plummet over 90% at Dubai’s Jebel Ali to just 374,000 teu in Q2,” Alphaliner said.
“Combined with a Q1 decline of 23%, Dubai’s flagship port handled 3.14m teu in the first six months of the year, less than half the 7.77m teu recorded a year earlier. As a result, the port fell out of the top 30, dropping from 10th to 32nd.”
Khalifa’s disappointing performance is in strong contrast to where it was just a year ago, when a year-on-year volume surge saw it handling some 21.4% more than it had in 2024, putting it in a position to challenge Lianyungang for a spot in the top 30.
For its part, Lianyungang has shown no great shakes, reporting flat to marginal growth, but doing just enough to retain its position from last year, albeit leaving it well short of the average 3.7% growth rate recorded across the 11 Chinese ports in the top 30.
Alphaliner noted: “With strong export growth driven by hi-tech and manufactured goods, plus a successful diversification drive, volumes at China’s seaports reached 161m teu in the period, a rise of 5.8% and a new six-month record.
It added that “while exports to the US rose just 4%, China reported increased shipments to Africa, Latin America, Europe, and South-east Asia”, which climbed 30%, 14%, 10%, and 9% respectively.
Although in terms of growth rates, South Asia was the standout star, with Sri Lanka’s Colombo and India’s Nhava Sheva climbing 11.9% and 13.6% year on year respectively, as carriers and shippers sought alternatives to the Gulf routings.
But with Colombo’s 4.4m teu and Nhava Sheva handling just over 4m teu, both are a long way off challenging for a spot among the biggest players, given Singapore and Ningbo-Zhousan both handle some 22m teu a year and Shanghai handles 28.7m teu.
“Sri Lanka’s leading port saw stronger transhipment demand as well as new capacity at its Colombo West International Terminal, which cut congestion and attracted additional volumes,” Alphaliner said.
It pointed out: “Nhava Sheva also benefited from India’s strong export growth, and expansion through the Bharat Mumbai Container Terminal and Nhava Sheva Freeport.”
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Facts Only
* Global port congestion is keeping 1.7 million TEU of capacity out of the market.
* Disruptions in the Hormuz waterway caused volume to plummet at Dubai’s Jebel Ali port to 374,000 TEU in Q2.
* Jebel Ali dropped from the 10th to the 32nd rank among top 30 container ports.
* Abu Dhabi’s Khalifa port dropped out of the top 50 and ranked 32nd overall.
* Khalifa experienced a year-on-year volume surge, handling some 21.4% more than in 2024 prior to the disruption.
* Lianyungang reported flat to marginal growth, not meeting the average 3.7% growth across Chinese ports.
* China’s seaports handled 161 million TEU in the six-month period, a 5.8% rise and a new six-month record.
* Shipments to Africa, Latin America, Europe, and South-east Asia climbed 30%, 14%, 10%, and 9% year-on-year.
* Sri Lanka’s Colombo port handled 4.4 million TEU.
* India’s Nhava Sheva handled just over 4 million TEU.
Executive Summary
Global port congestion is removing 1.7 million TEU of shipping capacity. The situation is exemplified by disruptions in the Persian Gulf, specifically in the Hormuz waterway, which caused volume plummeting at Dubai's Jebel Ali port in Q2 to 374,000 TEU, less than half of the previous year's volume. This resulted in Jebel Ali dropping from the 10th to the 32nd position among the top 30 container ports over six months. Abu Dhabi's Khalifa port also saw a drop, falling out of the top 50 and dropping to 32nd place overall, despite a year-on-year volume surge for some ports in the region.
China’s seaports recorded 161 million TEU in the six-month period, representing a 5.8% rise and a new six-month record, driven by strong export growth. Shipments to other regions increased significantly, with growth rates of 30%, 14%, 10%, and 9% for Africa, Latin America, Europe, and South-east Asia, respectively. While South Asia experienced strong growth in year-on-year volumes (Sri Lanka's Colombo and India's Nhava Sheva grew by 11.9% and 13.6%), these ports still have significantly lower volumes compared to major hubs like Singapore, Ningbo-Zhousan, and Shanghai.
Full Take
The narrative presents a clear divergence between regional performance and global logistics bottlenecks. The focus on the drastic decline of key Gulf ports like Jebel Ali highlights how geopolitical risk—specifically disruption in vital maritime chokepoints such as Hormuz—translates instantly into tangible shifts in trade volume and global ranking, showing that physical access is an immediate determinant of market standing. Simultaneously, the growth story from Chinese seaports and emerging routes in South Asia suggests resilience and active rerouting patterns; however, the reality remains that these gains are marginal when measured against the capacity managed by established mega-ports like Shanghai and Ningbo-Zhousan. This implies that while supply chains can adapt through diversification (as seen with increased trade to Africa or Southeast Asia), systemic constraints related to physical throughput and infrastructure limitations still exert a heavy downward pressure on overall market participation, regardless of regional export strength. The implication is that future stability will depend less on export demand growth and more on the reliability and accessibility of physical shipping lanes, forcing economic actors to prioritize resilient corridors over purely opportunistic volume increases.
Bridge Questions: If geopolitical stability were restored in the Gulf, what would be the projected timeline for Jebel Ali to regain its ranking, and how would investment strategies shift from volume chasing to resilience building? How do infrastructure investments in emerging hubs like Colombo and Nhava Sheva translate into sustained competitive advantages against established global players? What systemic changes are required for growth rates in developing regions to align with overall global capacity availability rather than being purely contingent on export diversification efforts?