International shipping and logistics market update - Week 16/2025

Update on the international container transport and logistics market for routes from Asia to North America, Europe... in Week 16/2025.

International shipping and logistics market update - Week 16/2025

Drewry's global composite container freight rate index for Week 16/2025 decreased by 3% to $2,192/FEU compared to the previous week. This rate index is 54% higher than the pre-pandemic average of 2019 ($1,420).

Drewry’s World Container Index Week 16/2025 (Photo: Phaata | Source: Drewry)

1. Asia - Northern America route

Ocean freight rates from Asia to the West Coast of North America continued to decline in week 16/2025 decreased slightly by 3.24% compared to the previous week, to $2,868/FEU. This rate is down 2.36% compared to the previous month, according to Xeneta data.

Tariffs on cargo from China are negatively impacting booking volumes on this route, leading to many shipping lines cancelling sailings. This is a new trend that Phaata International Logistics Marketplace continues to monitor.

Bookings from Southeast Asia have returned to normal levels but have not offset the loss from China. It will take a few more weeks to understand the full impact of China tariffs on overall demand, but so far, Phaata has seen that cargo from Southeast Asia has not been able to offset the affected cargo from China.

Shipping lines are actively reducing capacity through increased cancellations and downsizing vessels, with a target capacity of around 60-70% in May. Shipping lines are reviewing their capacity and vessel deployment plans and are likely to implement further capacity reductions to cope with the impact of US tariffs on China.

Container availability is generally good at most Asian export ports. There are some localised equipment shortages in Southeast Asia, but this is not considered a major concern at present.

Freight rates:

- Spot rates: Spot rates have been extended to the end of April for both Southeast Asian and Chinese export ports. This suggests that carriers are not seeing the expected strong demand increase in Southeast Asian volumes.

- Long-term fixed rates: Fixed rates are currently holding steady, with no significant fluctuations recorded. These rates are expected to be finalised by the end of April, coinciding with the end of the contract season.

Asia-US West Coast Freight rate | Week 16/2025 (Image: Phaata.com)

US Tariff Update:

The trade dispute between the United States and China has escalated over the past two weeks, with tariffs on both sides reaching record highs. Meanwhile, the U.S. Customs and Border Protection (CBP) has issued temporary exemptions for electronics—providing short-term relief for tech products.

Temporary Exemption of List of 20 Products (Including Semiconductors) from IEEPA Reciprocal Tariffs:

On April 11, POTUS (President of the United States) issued a Presidential Memorandum clarifying the meaning of “semiconductors” exempted from IEEPA tariff actions included in Executive Order (EO) 14257 (April 2, 2025), as amended by EO 14259 (April 8, 2025) and EO 14266 (April 9, 2025), which imposes 10% reciprocal tariffs on goods from most countries and 125% reciprocal tariffs on goods from China.

In response to the US tariff hike, China increased tariffs on US goods from 84% to 125%, effective April 12. China's Ministry of Finance said US goods are no longer commercially viable at the current tariff rate and said it does not intend to issue additional retaliatory measures against US products unless the US takes further action.

US tariffs on Chinese goods up to 145%: The White House has clarified that the total IEEPA tariff on Chinese goods is up to 145%, combining the 125% IEEPA reciprocal tariff with the current 20% tariff under the IEEPA fentanyl action.

2. Asia - Northern Europe route:

Container freight rates from Asia to Northern Europe week 16/2025 rose 4.25% compared to the previous week, to $2,378/FEU. This is in line with last month’s rates, according to Xeneta data.

Some carriers are redirecting orders to European markets, resulting in a slight increase in volumes. However, the full impact of these tariff measures remains uncertain and stakeholders are advised to monitor developments closely.

To address the oversupply situation, the Ocean Alliance has announced a number of sailing cancellations starting in mid-April.

In addition, the Premier Alliance has reduced capacity since Week 19. Carriers are advised to closely monitor their sailing schedules in late April and secure early bookings to mitigate the risk of potential adjustments.

This week, the Shanghai Container Freight Index remained stable for the fifth consecutive week. Despite no significant increase in demand, carriers’ proactive capacity tightening strategies have resulted in vessel utilization rates rising to 85–90%.

Freight rates are expected to remain stable, with upward adjustments anticipated in week 16.

Asia-Northern Europe Freight rate | Week 16/2025 (Image: Phaata.com)

3. Northern America - Asia route:

The freight rate from North America (West Coast) to Asia in week 16/2025 continued to decrease by 3% compared to the previous week, at USD 615/FEU in week 16/2025. This rate is stable compared to the previous month, according to Xeneta data.

US West Coast - Asia Freight rate | Week 16/2025 (Image: Phaata.com)

4. Northern Europe-Asia route:

Northern Europe to Asia freight rates in week 16/2025 continued to increase by 3.54% compared to the previous week, reaching USD 234/FEU; this price decreased by 3.7% compared to the previous month, according to Xeneta data.