International shipping and logistics market update - Week 10/2025

Update on international shipping and logistics markets for Asia, Europe and North America in Week 10/2025.

International shipping and logistics market update - Week 10/2025

The Drewry Global Composite Container Freight Index for the week 10/2025 continued to decline by 3% to $2,541/FEU compared to the previous week. This freight rate index is 79% higher than the pre-pandemic average of 2019 ($1,420). This downward trend reflects the lingering impact of weak demand after the Lunar New Year and concerns about overcapacity.

Drewry’s World Container Index Week 10/2025 (Photo: Phaata | Source: Drewry)

1. Asia - Northern America route

Ocean freight rates from Asia to the West Coast of North America in week 10/2025 continued to fall sharply by 18.58% compared to the previous week, down to USD 3,071/FEU. This price decreased by 38.06% compared to the previous month, according to Xeneta data.

Demand for transportation has increased but is still quite weak. In addition, transportation capacity is recovering rapidly after the Lunar New Year, currently reaching over 90%. Currently, it shows that there is an oversupply in the market. It is expected that the transportation volume may shift from China to Southeast Asian countries.

With spot rates on a steep decline, some carriers have extended rates until the end of March. As a result, the General Rate Increase (GRI) is unlikely to be implemented in March. On the fixed-rate side, the Peak Season Surcharge (PSS) is being reduced in March.

US tariff update:

On Wednesday, President Donald Trump agreed to exempt autos from the 25% tariff imposed on Mexico and Canada for one month. More than one-fifth of cars and light trucks sold in the United States are made in Canada or Mexico, according to S&P Global Mobility. The tariffs could push the price of some models as high as $12,200.

President Trump previously said he could impose 25% tariffs on autos, pharmaceuticals, and semiconductors as early as April 2, 2025. However, it is unclear whether the tariffs will apply to all imported vehicles or target specific countries. If implemented, the new tariffs could have a significant impact on major auto exporters to the US, including Mexico, Japan, and Canada.

Asia-US West Coast Freight rate | Week 10/2025 (Image: Phaata.com)

2. Asia - Northern Europe route:

Container freight rates from Asia to Northern Europe continued their downward trend in week 10/2025, but at a slower pace, down 0.44% week-on-week to $2,705/FEU. This is down 16.77% month-on-month, according to Xeneta data.

In early March, total vessel utilization was lower than initially expected. The flat market has prompted carriers to cancel plans to implement the March GRI, instead looking to increase competition for cargo. Some sailing cancellations in March have eased the oversupply situation slightly, but have not led to a significant capacity shortage. Overall, the market continues to show oversupply.

In addition, as the USTR proposed to impose fees and restrictions on international ocean services involving Chinese ship operators and Chinese-built vessels, carriers have begun to adjust their Asia-North America and Asia-North Europe trade capacity deployments. However, the broader impact on Asia-North Europe trade remains uncertain at this stage.

Demand for Asia-North Europe trade has almost returned to normal levels following the slowdown during the Lunar New Year. On the export side, production has returned to full capacity, but in Europe, orders are being delayed due to inventory build-up issues. Furthermore, slower demand in Europe this summer, coupled with fewer major international events compared to last year, has reduced the need to buy and ship early, leading to higher inventory levels. This has contributed to weaker market demand and a shortage of shipping cargo in March.

Given the current stable market conditions and the potential impact of the USTR proposal on carrier capacity adjustments, the market is likely to experience short-term volatility with increased uncertainty. Additionally, carriers are expected to attempt to push prices up through GRI in mid-to-late March or early April to improve vessel utilization. Unless significant events occur, such as the reopening of the Red Sea route, current spot rates are expected to remain stable.

Asia-Northern Europe Freight rate | Week 10/2025 (Image: Phaata.com)

3. Northern America - Asia route:

Freight rates from North America (West Coast) to Asia continued to decrease slightly by 0.48% compared to the previous week, down to USD 627/FEU in week 10/2025. This price decreased by 3.98% compared to the previous month, according to Xeneta data.

US West Coast - Asia Freight rate | Week 10/2025 (Image: Phaata.com)

4. Northern Europe-Asia route:

Northern Europe to Asia freight rates in week 10/2025 continued to decrease by 2.45% compared to the previous week, down to USD 239/FEU; this price decreased by 4.78% compared to the previous month, according to Xeneta data.

Northern Europe - Asia Freight rate | Week 10/2025