EU port congestion to persist until mid-July, spurred on by tariff pause

EU port overcrowding worsens amid trade threats: Congestion at key ports across the EU — triggered by labor shortages and low water levels in the Rhine river — may disrupt supply chains across the US and Asia and drive up shipping expenses, Bloomberg reports, citing a report by research and consulting outfit Drewry. Waiting times have been exacerbated by a surge in shipping orders driven by US President Donald Trump’s pause on a 145% tariff on Chinese goods — and temporarily trimming them down to 30%.

The end in sight? Shipping giant Hapag-Lloyd has noted signs of the congestion relenting, but said it will take some six to eight weeks before the issue can be remedied, CEO Rolf Habben Jansen reportedly said during a webinar last week.

In numbers: Germany’s Bremerhaven has seen a 77% surge in waiting periods between late March and mid-May, while delays rose 37% in Antwerp and 49% in Hamburg in the same period, the report found. Rotterdam and the UK’s Felixstowe have also recorded increased portside delays.

US-EU trade blows: Donald Trump announced plans this week to slap a 50% tariff on all goods imported from the EU into the US starting 9 July. This is a postponement from an earlier announcement that tariffs would be coming on 1 June, after European Commission President Ursula von der Leyen requested an extension.