International shipping and logistics market update - Week 2/2025

Update on international shipping and logistics markets for Asia, Europe and North America in Week 2/2025.

International shipping and logistics market update - Week 2/2025

Drewry’s World Container Index for the week of 2/2025 continued to increase by 2% compared to the last week, reaching USD 3,986/FEU. This freight rate index is 181% higher than the average of 2019 before the pandemic (USD 1,420).

Drewry’s World Container Index Week 2/2025 (Photo: Phaata | Source: Drewry)

1. Asia - Northern America route

Ocean freight rates from Asia to the West Coast of North America in week 2/2025 compared to the previous week after a sharp increase in early January, at USD 5,679/FEU, according to Xeneta data.

As the Lunar New Year approaches, shipping lines have implemented General Rate Increases (GRI) effective from January 1.

The Peak Season Surcharge (PSS) remains in effect as there have been no changes since the January 1 announcement.

Many shipping lines have announced and planned for potential charges related to disruptions due to the ILA strike with varying rates. However, as soon as the news of a tentative agreement between the ILA and USMX broke, several carriers (including Maersk, ONE, ZIM, and EMC) began to cancel these surcharges.

There are currently no significant issues with container equipment at the origin ports. But with the Lunar New Year approaching, we will begin to see pressure on equipment and truckers, especially given the potential new tariffs.

Amid the pre-Lunar New Year rush, space is still limited. However, some routes still have space, especially to West Coast ports.

Carriers have already planned to cancel some sailings during the Lunar New Year period.

Strike Update:

In a statement released on January 8, the ILA and USMX announced that they have reached a tentative agreement on a new six-year master agreement, averting a strike.

The deal comes just a week before the parties’ current contract extension expires on January 15. Formal talks resumed on January 7, following a secret meeting two days earlier where ILA and USMX representatives are expected to make progress on the core issue of automation.

A document from the meeting indicates that there is a “focus on creating new human jobs to complement any new port technology.”

ILA and USMX will continue to operate under their current contracts until a new contract is ratified. More details will be released once ILA and USMX members approve the final document.

Asia-US West Coast Freight rate | Week 2/2025 (Image: Phaata.com)

2. Asia - Northern Europe route:

Freight rates from Asia to North Europe in week 2/2025 decreased by 2.49% compared to week 1, to $4,895/FEU. This is a decrease of 4.17% compared to the previous month, according to Xeneta data.

Factory closures during the Lunar New Year period are expected to be concentrated around Week 3-4. This will reduce market demand; however, the impact will be mitigated by the ongoing shortage of carrier equipment. Therefore, Phaata predicts that freight rates in the market will remain stable with slight downward adjustments.

Market prices are still high, fluctuating around $4,800-5,000/FEU. This year’s Lunar New Year came earlier than usual, combined with the short period between Christmas and Lunar New Year, which has significantly narrowed the production and shipping time. As a result, the expected rush of deliveries before Lunar New Year has not occurred and is unlikely to occur before Lunar New Year.

Carriers are prioritizing profitable space utilization over simply increasing capacity. This approach, coupled with equipment constraints, is the underlying driver behind the carriers’ higher rates.

Asia-Northern Europe Freight rate | Week 2/2025 (Image: Phaata.com)

3. Northern America - Asia route:

Freight rates from North America (West Coast) to Asia in week 2/2025 were stable compared to the previous week at $694/FEU. This price increased by 2.81% compared to the previous month, according to Xeneta data.

US West Coast - Asia Freight rate | Week 2/2025 (Image: Phaata.com)

4. Northern Europe-Asia route:

Freight rates from North Europe to Asia continued to decline slightly in the week of 2/2025 decreased sharply by 11.40% compared to the previous week, to 303 USD/FEU; this price decreased by 11.66% compared to the previous month, according to data.

Northern Europe - Asia Freight rate | Week 2/2025 (Image: Phaata.com)