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International Shipping and Logistics Market Update - Week 22/2025 | Phaata

Phaata International Logistics Marketplace updates the international container shipping and logistics market for routes from Asia to North America, Europe... in Week 22/2025.

International shipping and logistics market update - Week 22/2025

Download International Logistics Market Update Report Week 21 here

1. World Container Index Week 22/2025

Drewry's Global Container Freight Index (WCI) continued to rise sharply by 10% to $2,508/FEU in week 22/2025 compared to the previous week. The index has increased by 21% over the past 3 weeks, as the US's temporary suspension of reciprocal tariffs on China has led to the resumption of freight traffic between the two countries after a sharp decline earlier.

Drewry's World Container Index Week 22/2025 (Photo: Phaata)

2. Asia-North America Ocean Freight Rates

Ocean Freight rates from Asia to the West Coast of North America continued to increase by 1.89% in week 22/2025 after a sharp increase of 13.58% in the previous week, reaching USD 3,026/FEU. This rate increased by 10.06% compared to the previous month, according to Xeneta data.

Market Dynamics: Booming Demand and Pre-Tariff Pressure

- Strong demand growth: The market recorded high demand for transportation and a strong upward trend in June, expected to continue to maintain this growth momentum. This is a positive signal showing the recovery and vibrancy of commercial activities.

- Pre-Tariff shipping wave: A key factor driving the surge in cargo volumes, especially from Southeast Asia to the US West Coast, is importers' proactive acceleration of shipping schedules. Specifically, the 90-day tariff suspension policy ending on July 9 and the tariff reduction policy for goods from China expiring on August 11 are creating pressure to "race" for goods to arrive at ports before these deadlines.

Shipping Capacity: Signs of Recovery and Operational Optimization

- Efforts to restore capacity: Shipping lines are actively implementing measures to restore full operating capacity, with the goal of reaching optimal capacity by the end of June. In week 22, total capacity was still 9% lower than the optimal standard level. However, by week 24, this figure is expected to improve significantly, only 4% lower than the standard level.

- Capacity utilization rate: The overall capacity utilization rate on current routes is estimated to range from 80% to 86%, indicating efficient operation by shipping lines.

- Reduced blank sailings: The cancellation situation has improved significantly. Week 22 recorded a 15% cancellation rate, down 10% from the previous week. This is expected to continue to decrease in the coming weeks, down to around 10% in the week starting June 9 - the lowest level since late March. This reflects the efforts of shipping lines to maintain schedule stability.

- Increase additional vessels and restart services: To meet the increased demand, many shipping lines have proactively deployed extra loaders and restarted previously suspended service routes. Notably, seven (out of ten) of the suspended Asia-North America services are scheduled to resume operations, with some starting this week.

Container Equipment Situation

Currently, the equipment availability situation is generally stable and there are no signs of worrying shortages. This is a favorable factor, helping to reduce pressure on the supply chain.

US freight rate developments:

- GRI and PSS implementation: The General Rate Increase (GRI) and Peak Season Surcharge (PSS) implementation for June 1 have been confirmed by shipping lines and are expected to be fully implemented, without any adjustments.

- Factors affecting freight rates: The main driver for this price increase comes from a combination of strong market demand and the fact that capacity on the Asia-North America route has not yet fully recovered. This has a direct impact on both spot rates and fixed rates under long-term contracts.

Recommendations:

In the context of demand exceeding supply, the situation of fully booked ships is understandable. Phaata Logistics Marketplace recommends that exporters / logistics companies on this route should proactively plan and book at least 04 weeks in advance. For shipments with urgent time requirements, consider premium service packages.

The logistics and import-export market is entering a peak period with many fluctuations due to increased demand and factors related to trade policies. Closely monitoring market information, being proactive in planning transportation and closely cooperating with reputable logistics partners are key factors for businesses to optimize costs, ensure progress and maintain competitive advantages in the coming time.

Please regularly follow articles on Phaata International Logsitcs Marketplace to quickly update market developments.

Asia-North America Freight Rates | Week 22/2025 (Photo: Phaata.com)

US Tariff Update:

- Important IEEPA Tariff Ruling by the Court of International Trade (CIT)

- Invalidation of Tariff Orders: On May 28, 2025, the Court of International Trade (CIT) issued a ruling declaring four of President Trump's Executive Orders, which imposed tariffs under the International Emergency Economic Powers Act (IEEPA), invalid. These orders include: 25% Tariffs on goods from Canada and Mexico; 20% Tariffs on goods from China; Reciprocal Tariffs on each country (ranging from 10-67%, previously 125% for China).

- Legal Basis of the Ruling: According to the CIT, President Trump's invocation of IEEPA to issue these tariff orders "exceeds all authority granted to the president... to regulate imports by tariffs."

- Enforcement and Appeals: The CIT ordered Customs and Border Protection (CBP) to stop collecting these duties within 10 days of the ruling. However, the Trump Administration immediately appealed the decision to the U.S. Court of Appeals for the Federal Circuit, requesting a stay of enforcement. If the stay is granted, the collection of duties under IEEPA will continue while the Court of Appeals considers the decision. This process could take months, and the losing party will likely appeal to the Supreme Court.

- Unaffected Duties: It is important to note that the Section 301 and Section 232 tariff orders remain in effect and are not affected by this ruling.

- President Trump Delays 50% Tariff on European Goods

On May 25, 2025, President Trump announced his decision to delay the planned 50% tariff on imports from the European Union (EU) until July 9, 2025. This decision came just two days after the proposed tariff from June 1, 2025, paving the way for trade negotiations between the United States and the EU, which are expected to begin quickly. This delay provides a temporary period for businesses with trade transactions with the EU to adjust their plans, however, the risk of tariffs still exists.

- The “One Big Beautiful” Bill and Changes to the De Minimis Exemption

- The “One Big Beautiful” Bill, President Trump’s tax cut and budget reconciliation proposal, if passed, would make significant changes to the de minimis exemption (tax exemption for low-value shipments):

+ Completely end the de minimis exemption as of July 1, 2027, through the enactment of the main body of the FIGHTING for America Act.

+ Impose severe penalties on importers who use the de minimis exemption in violation of other U.S. laws before July 1, 2027: $5,000 for the first violation and up to $10,000 for each subsequent violation.

- Legislative Progress: The bill passed the House on May 22, 2025, and is expected to be introduced in the Senate in June.

- Current De Minimis Background: It should be noted that the de minimis exemption expired for goods from China and Hong Kong on May 2, 2025. Under President Trump’s previous executive order (“Liberation Day”), de minimis will be eliminated for all trading partners when the United States has “sufficient systems to process and collect duties fully and promptly.”

- Reciprocal Tariffs Update

- China: Goods originating from China entering on or after May 14, 2025 will be subject to a 10% reciprocal tariff until August 11, 2025. As of August 12, 2025, this rate will increase to 34%.

- United Kingdom: Goods originating in the United Kingdom are subject to a 10% reciprocal tariff indefinitely.

- Other countries: Goods originating in these countries are subject to a 10% reciprocal tariff until July 9, 2025. If the United States and these countries do not reach an agreement by that date, country-specific tariffs will resume.

- Exemptions: Any HTS code in Annex II is exempt from reciprocal tariffs, regardless of country of origin. Semiconductors are also exempt from this tariff until April 16, 2025.

3. Asia-Europe Ocean Freight Rates

Container freight rates from Asia to Northern Europe continued to decrease by 2.19% week-on-week in week 22/2025, down 18.97% month-on-month, according to Xeneta data.

Supply-demand tensions and pressure on capacity

- Space tightness: Space tightness on the Asia - Northern Europe route is becoming increasingly serious, especially since the end of May has put enormous pressure on supply capacity. Shipping lines are forced to tighten control over load allocation, leading to an increased risk of cargo being left behind on later voyages (rollover) and space shortages in the coming weeks.

- Warning about lack of container equipment: Ships are quickly filling up in early June. Notably, shipping lines have warned that equipment shortages (container shells) could worsen in the coming month.

Severe port congestion and lingering effects

- Increasing congestion at European ports: Congestion at European ports is worsening, causing significant delays. Waiting times at berths have increased across the board. Compared to Week 13, major ports have recorded significant increases in waiting times at berths, namely: Bremerhaven: +77%; Hamburg: +49%; Antwerp: +37%; Other important ports such as Rotterdam and Felixstowe are also facing longer than usual vessel detention times.

- June GRI boosts demand: The announcement of the June General Rate Increase (GRI) has triggered a wave of new bookings, contributing to the overall market demand increase over the past two weeks.

- Congestion at multiple Chinese ports of origin: With vessel delays at major ports such as Shanghai and Ningbo, we expect this congestion to persist for several more weeks. Even with the implementation of the June GRI – which is expected to push up ocean freight rates – the pressure on the supply chain remains high as the congestion has not been fully resolved.

Freight Rate Developments

- June GRI Effectiveness: The June General Rate Increase (GRI) is likely to be fully implemented. Freight rates in the first week of June are expected to remain high until the congestion at the origin ports and equipment shortages show signs of improvement.

- Balancing NAC and FAK rates: In the context of increasing market pressure, the balance between Named Account Contract (NAC) rates and Freight All Kinds (FAK) rates is gradually being re-established. However, due to space and equipment constraints, shipping lines may review their customers' past performance and adjust their NAC rate allocation in the coming weeks. This is a move that should be noted by shippers using NAC rates.

Recommendation:

In this situation, Phaata strongly recommends that shippers take drastic action: prioritize maximizing the efficiency of picking up goods and proactively booking as early as possible to minimize the risk of unexpected delays and ensure the flow of goods.

The Asia-North Europe trade is facing an extremely challenging period, characterized by severe supply-demand imbalances, port congestion and upward pressure on freight rates. Import-export businesses need to be highly flexible, prioritizing early and tight planning, and working closely with logistics partners to find optimal solutions and minimize risks to their supply chains. Building contingency plans and diversifying transportation solutions are extremely important in the current context.

Please regularly follow the articles on Phaata International Logistics Marketplace to quickly update market developments.

Asia-Europe Freight Rates | Week 22/2025 (Photo: Phaata.com)

4. North America - Asia Ocean Freight Rates

North America (West Coast) to Asia freight rates increased slightly by 0.95% to $635/FEU in week 22/2025. This is a 3.42% increase compared to the previous month, according to Xeneta data.

North America (West Coast) - Asia freight rates | Week 22/2025 (Photo: Phaata.com)

5. Northern Europe - Asia Ocean Freight Rates

North Europe - Asia freight rates remained unchanged compared to the previous week, at $215/FEU; this is a 6.11% decrease compared to the previous month, according to Xeneta data.

Container Freight rates from Northern Europe to Asia | Week 22/2025 (Photo: Phaata.com)

6. Conclusion and Market Reviews by Phaata

Week 22/2025 shows a global shipping market that is not only affected by conventional economic factors but also strongly affected by political decisions and increasingly serious operational bottlenecks.

Asia-North America: The "fever" continues as importers race against the tariff deadline. Freight rates increase, capacity improves but remains tense.

Asia-Europe: Facing a serious operational crisis. Port congestion and the risk of equipment shortages are pushing up effective freight rates, despite the fact that underlying demand may not be too strong.

The uncertainty over US tariff policy has reached a new level with the CIT ruling. This creates great uncertainty for businesses in planning costs and supply strategies.

Risks and challenges for shippers:

- Increased and unpredictable costs: Especially for cargo to the US due to taxes and surcharges, and cargo to Europe due to operational issues.

- Reduced supply chain reliability: Delays due to port congestion, risk of cargo being dropped off the ship, and equipment shortages.

General recommendations from Phaata:

- Transparency of costs and tariff risks: For cargo to the US, it is necessary to closely monitor the legal developments of CIT rulings and other tax policies. Legal advice may be necessary.

- Prioritize securing space and equipment: Especially for the Asia - Europe route, early booking and having backup plans are extremely important.

- Diversify and enhance the resilience of the supply chain: Consider alternative ports (if possible), other modes of transport for extremely urgent shipments (even if the cost is high), and work with multiple service providers.

- Risk management and flexibility: In the current environment, businesses need to be extremely proactive in gathering information, assessing risks, building response scenarios and working closely with logistics partners to find solutions.

Week 22/2025 shows a market that is not only affected by normal economic factors but also strongly shaped by political decisions and increasingly serious operational bottlenecks. This is a period that requires in-depth assessment, analysis and decisive action from supply chain managers.

Regularly follow articles on Phaata.com or Phaata fanpage to quickly update market developments.