International shipping and logistics market update - Week 17/2025

Update on the international container transport and logistics market for routes from Asia to North America, Europe... in Week 17/2025.

International shipping and logistics market update - Week 17/2025

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Drewry's global composite container freight rate index for week 17/2025 continued to decline by 2% to $2,157/FEU compared to the previous week. This freight rate index is 52% higher than the pre-pandemic average of 2019 ($1,420).

Drewry’s World Container Index Week 17/2025 (Photo: Phaata | Source: Drewry)

1. Asia - Northern America route

Ocean freight rates from Asia to the West Coast of North America continued to decline by 3.8% week-over-week to $2,759/FEU in week 17/2025. This is up 10.45% month-over-month, according to Xeneta data.. This rate is down 2.36% compared to the previous month, according to Xeneta data.

Capacity and demand: Significant negative impact on China to North America volumes, with 50% of sailings canceled. The short-term forecast for volume growth from Southeast Asia to North America remains bleak. This will put downward pressure on freight rates in the market in the coming weeks.

Increased blank sailings: Ocean carriers are pulling capacity in the trans-Pacific trade from Asia to the West Coast of North America at a faster pace than COVID in anticipation of weaker demand following the implementation of new tariffs on shipments from China to the US. Carriers are reducing capacity by deploying smaller vessels, canceling scheduled sailings, and even suspending entire services.

The Ocean Alliance (CMA CGM, COSCO, Evergreen, and Orient Overseas Container Liner), Premier Alliance (ONE, HMM, YML), and ZIM/MSC have all suspended eight of their weekly services. Additionally, there are multiple weeks of cancellations across alliances/carriers, with more cancellations expected to follow.

In late April and early May (Weeks 17-19), over 25% of weekly services were cancelled. By comparison, Week 19 of 2020, during the early stages of COVID, saw a cancellation rate of 24%. There is little information on Week 20 onwards, as carriers are closely monitoring market developments and may announce additional blank sailings depending on changes in demand. Stay tuned to Phaata International Logistics Marketplace for updates on market developments quickly.

Asia-US West Coast Freight rate | Week 17/2025 (Image: Phaata.com)

US Tariff Update:

The Office of the United States Trade Representative (USTR) Releases Revised Fee Plan for Chinese Ships: Last Thursday (April 17), the USTR released a revised plan to impose fees on Chinese-built and operated vessels, which is scheduled to take effect on October 14, 2025. The revised plan, which is significantly less aggressive than the original proposal released in February, is expected to result in lower costs than originally anticipated.

The new fees and restrictions will be rolled out in a phased approach over time. The plan outlines the upcoming fees and restrictions on vessels in four Annexes:

- Annex 1: Gradual increase in fees for Chinese-owned or Chinese-operated vessels, calculated per voyage in the United States and based on the net tonnage of the vessel

- Annex 2: Gradual increase in fees for Chinese-built vessels, calculated per voyage in the United States and based on the net tonnage or number of containers—whichever is greater
- Annex 3: Fees for all foreign-built car carriers, not just those from China

- Annex 4: Beginning in 2028, gradual increase in restrictions on the transport of liquefied natural gas (LNG) via any foreign vessel

Fees and restrictions will not be cumulative, meaning that each vessel will be subject to only one Annex at a time. Any fees imposed will be calculated per vessel and will apply to each voyage to the United States.

The US-China trade war continues: Earlier this week, President Trump told reporters that the current 145% IEEPA tariff on China “will come down substantially, but it won’t be zero.” However, a spokesperson for China’s Ministry of Commerce later said that no negotiations regarding tariffs were taking place with the United States, despite President Trump telling reporters yesterday that “everything is going on” when asked about negotiations with China.

2. Asia - Northern Europe route:

Container freight rates from Asia to Northern Europe fell 2.65% week-on-week in week 17/2025 to $2,315/FEU. This is up 4.61% month-on-month, according to Xeneta data.

Demand remained steady at the end of April, with no near-term increase in cargo volumes. The European Union’s continued interest rate adjustments support expectations of a gradual recovery in European retail consumption. Asian manufacturers are increasingly diverting their inventories destined for the US to the European market, which reinforces the outlook for stronger medium- to long-term demand growth along the Asia-Europe route.

Excess capacity continues on the Asia-Europe trade. The upcoming additional US port charges on Chinese vessels are accelerating the redistribution of capacity from trans-Pacific routes, exacerbating the existing excess capacity to Europe. Cancellations on Labor Day remain moderate, in line with demand trends. However, delays in vessel schedules at ports of loading (POL) may impact export plans.

The Shanghai Container Freight Index (SCFI) has been stable for six weeks and is likely to remain stable until mid-May. Phaata's observations and forecasts suggest that freight rates in early May will remain unchanged from spot rates in late April.

Asia-Northern Europe Freight rate | Week 17/2025 (Image: Phaata.com)

3. Northern America - Asia route:

The freight rate from North America (West Coast) to Asia increased by 2.11% week-on-week to $628/FEU in week 17/2025. This is up 1.29% month-on-month, according to Xeneta data.

US West Coast - Asia Freight rate | Week 17/2025 (Image: Phaata.com)

4. Northern Europe-Asia route:

Northern Europe to Asia freight rates in week 17/2025 were stable compared to the previous week, at USD 234/FEU; this price decreased by 8.95% compared to the previous month, according to Xeneta data.

Northern Europe - Asia Freight rate | Week 17/2025 (Image: Phaata.com)