Founded on 7 May 1189 by Frederick I at a strategic location near the mouth of the Elbe, it has been Central Europe's main port for centuries and enabled Hamburg to develop early into a leading city of trade with a rich and proud bourgeoisie.

During the second half of the 19th century, Hamburg became Central Europe's main hub for transatlantic passenger and freight travel, and from 1871 onward it was Germany's principal port of trade.

The Free Port (Freihafen), established on 15 October 1888, enabled traders to ship and store goods without going through customs and further enhanced Hamburg's position in sea trade with neighbouring countries.

Moreover, during World War II, Hamburg harbour was the hub destination of the Hamburg America Line, that assured the Nazi Party a connection to the United States for the import of oil and steel, and the export of manufactured goods from Germany thanks to container ships.

However, since German reunification, the fall of the Iron Curtain and European enlargement, Hamburg has made substantial ground as one of Europe's prime logistics centres and as one of the world's largest and busiest sea ports.

In part due to cooperation with Lower Saxony and Bremen to build a new container port (JadeWeserPort) in the deep waters of Jadebusen in Wilhelmshaven, Hamburg withdrew from this plan after a change of government in 2001.

The port is also a major location for shipbuilder and shipyards, designing, building and reconditioning yachts and cruise liners.

Tugboats perform "ballets", old galleons and new cruise ships are open for tours, and fireworks explode at night.