Dredging operations in European harbors for maintenance of navigable water depth produce vast amounts of harbor mud. Between 2005 and 2007, the second largest harbor construction project in Germany was designed as a pilot study to use dredged harbor mud as backfill material to avoid expensive disposal or ex situ treatment. During this project, a partial collapse of the backfill highlighted the need for an improved assessment of undrained shear strength of naturally occurring liquid harbor mud. Using vane shear testing, this study evaluates the effect of shear rate on the undrained shear strength of harbor mud. It is shown that measured values for both peak and residual shear strength are significantly influenced by shear rate effects. Furthermore, the influence of shear rate on the peak shear strength is found to be independent of water content while the influence of the shear rate on the residual shear strength strongly depends on water content. New shear rate dependent correction factors are proposed using the test results and the observed time to failure in the harbor basin. The proposed correction leads to significant lower design undrained shear strengths than the classical Bjerrum correction and would have predicted the failure during the construction.