Labour disputes at European ports disrupt container shipping

Labour disputes at European ports disrupt container shipping

Trade union action across major European ports, particularly in Rotterdam and France, are causing significant disruptions to container shipping, exacerbating existing supply chain challenges.

Strikes at Rotterdam’s Delta II terminal and ongoing industrial action at French ports have created congestion, delays, and logistical bottlenecks, prompting carriers to reroute vessels and seek alternative solutions.

Rotterdam turmoil and ripple effects
Contract negotiations that began in November have stalled, while the FNV Havens and CNV unions have been locked in dispute with employers since the second half of last year over port automation concerns. Dockworkers have been staging intermittent strikes that have severely impacted deep-sea vessel operations, feeder ship schedules, and inland-bound cargo movements. The situation has escalated with calls for solidarity action across Europe, urging other ports not to handle diverted vessels. While no widespread solidarity strikes have been reported, shipping lines remain on high alert, monitoring developments and adjusting vessel rotations as necessary.

Congestion at Rotterdam has intensified due to a combination of adverse weather, holiday-related backlogs, and surging cargo volumes from Asia. As a result, vessels are facing extended waiting times, with some opting to bypass the port altogether. The container yard capacity is nearing full utilisation, and precautionary measures, such as limiting empty container acceptance, have been implemented to manage the strain.

French port strikes deepen crisis
Meanwhile, industrial action at French ports is compounding the disruption. Dockworkers are protesting against pension reforms, with frequent work stoppages and a series of strikes planned throughout March. These actions have significantly impacted cargo handling operations at key ports, including Le Havre and Marseille-Fos, leading to increased transport costs and supply chain strain for businesses dependent on timely shipments.

The business community has voiced concerns over the economic fallout, citing rising supply chain costs, shipment delays, and a decline in sales due to the port closures. Calls for government intervention and a coordinated public-private response have been made in an effort to mitigate the impact and prevent further damage to trade and industry.

Wider European impact
As Rotterdam and French ports struggle with ongoing disruptions, other European hubs, such as Antwerp-Bruges, are facing additional pressure. With cargo diversions increasing, terminal congestion at Antwerp has reached critical levels, forcing operators to implement emergency measures. 

Import deliveries are being prioritised over exports, and yard space constraints are leading to restrictions on transshipment volumes. Barge and feeder operations are experiencing significant delays, further straining inland logistics networks.

With no immediate resolution in sight for either the Rotterdam or French port disputes, container carriers are bracing for continued volatility.

With escalating labour disputes at key European ports, including Rotterdam and France, container shipping is facing increasing delays, congestion, and logistical challenges. At Metro, we have contingency plans in place to bypass affected ports, leveraging alternative routes and entry points to keep your cargo moving.

To minimise disruptions, we encourage you to share your shipping forecasts as early as possible so we can proactively mitigate potential issues.

For tailored solutions and expert guidance on protecting your supply chain, 

EMAIL Andrew Smith, Managing Director, today.

Stay Ahead with Metro’s Ocean Freight Market Update

Stay Ahead with Metro’s Ocean Freight Market Update

In the ever-changing world of global trade, staying informed is not just an advantage, it’s a critical necessity. That’s why Metro provides the Ocean Freight Market Update, a comprehensive, data-driven report designed to help businesses navigate the complexities of container shipping.

Subscribers to this monthly report gain valuable insights into spot, short- and long-term rate trends, carrier reliability, port congestion, canceled sailings, sustainability initiatives, and more—ensuring they can make informed, strategic decisions in real-time.

Highlights from the March 2025 Ocean Freight Market Update

Rate Developments: Despite attempts to impose general rate increases (GRIs), rates on Far East Westbound trade lanes have softened. Volatility is expected through April, with Asia-Europe lanes facing capacity shortages.

Schedule Reliability & Port Congestion: Global vessel reliability dipped slightly to 50-55%, while major ports like Singapore, Busan, and Piraeus continue to experience significant congestion.

Bunker & Biofuels Transition: The shipping industry is accelerating its shift toward decarbonisation, but new EU carbon emissions surcharges are increasing costs.

Supply & Demand Outlook: An 8% increase in capacity versus just a 3% rise in demand suggests blank sailings will be necessary to balance market conditions.

Red Sea Transits: Major carriers continue to avoid the Suez Canal due to ongoing security concerns, maintaining Cape of Good Hope reroutes.

Why Subscribe?
Metro’s Ocean Freight Market Update is an unbiased, intelligence-driven resource backed by data from leading industry sources. In a landscape shaped by supply chain disruptions, regulatory shifts, and market fluctuations, having access to timely, expert insight is more critical than ever.

Subscribe now to receive monthly updates straight to your inbox and stay ahead in the dynamic world of ocean freight.

Contact your Key Account Director, or EMAIL Lucy Hulston to subscribe and receive the latest update.

Ocean freight market report

Ocean freight market report

Global shipping dynamics are shifting, with rates under pressure, 5% growth in global container shipping capacity, and the impact of the US’ new trade policies.

The ocean freight market is navigating a complex landscape, marked by operational and regulatory shifts. The Shanghai Containerised Freight Index (SCFI) has dropped since the start of the year, primarily due to the resolution of the US East Coast port strike. However, freight rates remain volatile, driven by service disruptions, alliance reshuffling, and geopolitical tensions in the Red Sea. Market capacity is also under pressure, with 30% of Far East westbound sailings expected to be blanked.

Capacity

Liner capacity growth has slowed following a record increase in 2024 and is now forecasted at 5% for 2025.

  • Global port congestion hit a three-month high (10.3%), particularly at Chinese ports before Lunar New Year.
  • The liner sector remains fully utilised, with only 0.2% of vessels (30 ships) idle.
  • 16,000 TEU vessels are becoming the new standard as carriers shift away from ultra-large container ships (ULCS).

From February to April 2025, the ocean freight market is expected to be volatile, driven by the post-Lunar New Year slowdown and carrier alliance reshuffles:

  • February: Capacity shortages are anticipated on Asia–North America and Asia–Europe lanes, with Transatlantic routes also under pressure, potentially increasing freight rates.
  • March: Market balance may improve as new alliance networks stabilise, though capacity constraints could persist from Asia.
  • April: Conditions should stabilise.

Rates & Schedule Reliability

  • Freight rates are in decline across all trades, with:
    • SCFI falling 17% since the beginning of 2025.
    • WCI down 12%.
    • Drewry World Container Index 118% higher than pre-pandemic.
  • Despite strong demand leading up to Chinese New Year, rates have continued to fall due to service disruptions and alliance changes.
  • Global schedule reliability has remained between 50%-55%, but port congestion has reached a three-month high.
  • 10.5% of the global fleet (3.3 million TEU) is currently stuck in port congestion.

Demand Outlook

Demand trends remain mixed, with a rush in US-bound cargo ahead of potential tariff hikes, while the traditional seasonal slowdown is following Lunar New Year.

  • December PMI data shows continued global growth disparities:
    • The US is outperforming other developed economies.
    • India leads emerging markets.
    • Global business confidence has declined.

Looking ahead the Far East is projected to remain a critical driver of global container trade, contributing significantly to the 3.3% CAGR expected from 2026 to 2028. The region’s demand is forecasted to grow by 2.9%, underpinned by robust intra-Asia trade and strong export performance, particularly to North America and Europe. 

Despite ongoing trade challenges, including regulatory and tariff impacts, the Far East’s economic resilience, led by China and India, is expected to support continued growth in freight volumes.

On the Transatlantic, demand is projected to remain stable, with North America expected to see a 2.5% increase in trade volumes. However, carriers are reducing capacity on this route, potentially impacting freight rates and capacity availability. The shift towards smaller vessels and the restructuring of carrier alliances may lead to temporary disruptions, but the market is likely to stabilise as the new network configurations take effect.

Market Developments

The US continues to lead developed markets, while China’s exports have exceeded expectations despite export tax rebate cuts. However, market outlook was already cautious, with business confidence waning amid concerns over economic growth, particularly in Europe and the UK. And now the de-stabilising impact of President Trump’s aggressive trade policies need to be factored in.

  • Market imbalances persist across key trade routes:
    • Asia outbound capacity is strained, creating pressure on freight rates.
    • The Transatlantic trade lane has seen capacity reductions, with carriers downsizing vessels.
    • The upcoming alliance reshuffle is expected to disrupt operations, leading to short-term demand surges until new networks stabilise.
    • Demand exceeds capacity on multiple routes, particularly:
      • Asia–North America
      • Asia–Europe
      • Asia–Middle East
    • Some regional markets are more balanced, but capacity pressures remain high.

Conclusion

The ocean freight market continues to challenge, with rate volatility, capacity constraints, and shifting trade policies. While global liner capacity is set to grow by 5% in 2025, port congestion and alliance reshuffles are contributing to market instability, particularly on Asia–North America and Asia–Europe routes.

Despite the post-Lunar New Year slowdown and the impact of new US trade policies, demand from the Far East remains a key growth driver, underpinned by strong intra-Asia trade and export flows to North America and Europe. 

As geopolitical risks and market disruptions continue to impact global shipping, building resilient supply chains and ensuring budgetary certainty, to mitigate risks and maintain stability, are more crucial than ever.

At Metro, our fixed-rate agreements on popular shipping routes provide a practical safeguard against rate volatility, offering predictable costs for effective budgeting. Whether you’re managing high-volume trade lanes or seeking greater stability for your supply chain, our tailored solutions can help you thrive in 2025.

To discover how Metro can strengthen your business and provide peace of mind, EMAIL our Managing Director, Andy Smith, today.

Seven supply chain shocks in seven weeks

Seven supply chain shocks in seven weeks

Just seven weeks into 2025, global supply chains have already faced a whirlwind of challenges.

From industrial action to trade barriers and shifting alliances, businesses must stay agile to navigate ongoing disruptions. Here are seven of the most impactful developments so far this year.

1. US east coast port strike averted (8th January)
A major disruption was narrowly avoided as the International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) reached a tentative six-year agreement. The deal, approved on 7 February, prevented a strike that could have crippled US east coast ports for months. A final vote on 25 February will confirm its ratification.

2. Uncertainty over Suez Canal return (19th January)
Despite a fragile ceasefire in Gaza, container ships will not be returning to the Red Sea anytime soon. Carriers remain cautious, fearing renewed instability and prioritising the established Cape of Good Hope diversions. Even if ships do resume transit, severe disruption is expected, with schedules taking up to two months to stabilise.

3. Trump’s trade policies spark concerns (20th January)
Following his inauguration, President Trump swiftly reignited trade tensions, threatening tariffs on Colombia, China, Canada, and Mexico. Proposals include a 25% levy on steel and aluminium from Canada and Mexico, with reciprocal tariffs also being considered for UK imports. The potential trade war could have widespread consequences for global supply chains.

4. US air cargo demand under threat (1st February)
Trump’s decision to impose a 10% tariff on all Chinese imports and temporarily suspend the de minimis exemption for low-value Chinese shipments has sent shockwaves through the air freight sector. While the exemption was reinstated, changes to eCommerce regulations could significantly disrupt air cargo flows into the US, which is expected to receive 1.4 billion eCommerce packages this year.

5. New Asia shipping alliances reshape trade (2nd February)
The long-anticipated shift from three major container alliances (Ocean, THEA, 2M) to four key players (Ocean, Premier, Gemini, MSC) is now in effect. Asia-North Europe scheduled liner capacity will shrink by 11%, yet the number of weekly sailings will increase from 26 to 28. These changes will reshape global shipping networks for years to come.

6. European road freight rates stabilising (4th February)
After three years of decline, European road freight spot rates may have hit their lowest point. According to the European Road Freight Rate Benchmark, spot rates fell just 1% year-on-year in Q4 2024. While demand remains weak, cost pressures have kept rates 15% above pre-pandemic levels, with short-term volatility expected.

7. Carriers cut sailings to stabilise rates (14th February)
Shipping lines are aggressively blanking sailings to ease the transition to new alliance schedules and sustain freight rates. Between 17 February and 23 March, 51 sailings have been cancelled across key east-west trade routes, with February’s cancellations rising to 133 from 104 in January. Further capacity withdrawals and a general rate increase (GRI) could follow if demand fails to recover.

With trade disputes, shipping realignments, and geopolitical instability shaping global supply chains, the first quarter of 2025 has already presented significant challenges.

Staying ahead requires proactive strategy adjustments to mitigate risks and build resilience. That’s why we share these insights and why your Metro account management team is always by your side, ready to provide expert advice, share knowledge, and develop bespoke solutions tailored to your supply chain needs.

For high-level support, EMAIL Andrew Smith, Managing Director.