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International Shipping and Logistics Market Update - Week 23/2025 | Phaata

Phaata International Logistics Marketplace updates the international container shipping and logistics market for routes from Asia to North America, Europe... in Week 23/2025.

International shipping and logistics market update - Week 23/2025

International shipping and logistics market update - Week 23/2025

Download International Logistics Market Update Report Week 22 here

1. World Container Index Week 23/2025

Drewry's Global Container Freight Index (WCI) continued its strong week-on-week rise of 41% to $3,527/FEU in the week of 23/2025. The index has risen 70% in the past four weeks, as the US’s temporary suspension of reciprocal tariffs on China has led to a resumption of freight traffic between the two countries after a sharp decline earlier.

Drewry's World Container Index Week 23/2025

Drewry's World Container Index Week 23/2025 (Photo: Phaata)

2. Asia-North America Ocean Freight Rates

The Asia-North America shipping market in Week 23/2025 continues to witness an extremely vibrant period, driven by a combination of rising natural demand and pressure from trade policies.

On supply and demand:

- Surging demand and the "Before G" race:

Demand for shipping across the entire route remains very high and continues to increase strongly in June. In particular, we forecast an even stronger wave of freight from Southeast Asia to the US West Coast in late June. The main driver of this wave is the fact that importers are racing to bring goods to ports before July 9, when the policy of suspending reciprocal tariffs by each country for 90 days ends.

- Supply side response - Efforts to restore full capacity:

Shipping lines are making every effort to meet this explosive demand:

+ Capacity restoration: Capacity is being actively brought back to operation, with the goal of reaching optimal levels by the end of June. Although this week (Week 23), the offered capacity is still 11% below the standard level, it is expected to exceed the standard level by 3% in Week 25, indicating a strong return of supply.

+ Reduced cancellations: The situation of blank sailings has improved significantly. The cancellation rate this week was 13%, down 62% compared to the peak week in early May. It is forecasted that next week (starting from June 9), this rate will be only 9%.

+ Increasing vessels and restarting services: Many shipping lines have proactively deployed extra loaders and restarted suspended routes. Notably, 7 out of 10 previously suspended routes have been or are planned to resume operations.

- Operational efficiency:
Despite the addition of capacity, fully booked vessels are still common. In June, the average capacity utilization rate across the entire route is expected to reach over 85% of the plan, demonstrating extremely efficient operation by shipping lines.

Container equipment

In general, the supply of container shells is still guaranteed. Equipment shortages are not an immediate concern on this route.

Freight rate developments

GRI and PSS implementation: The General Rate Increases (GRIs) and Peak Season Surcharges (PSS) for June 1 have been successfully implemented. For the June 15 GRI, there are signs that some carriers may keep rates unchanged for West Coast ports until the end of the month, while still applying rate increases for East Coast ports.

Price increase drivers: The increase and staying high is the inevitable result of the combination of soaring demand and not yet fully recovered capacity supply. This has a strong impact on both spot rates and fixed rates under long-term contracts.

Ocean freight rates from Asia to the West Coast of North America in week 23/2025 increased sharply by 71.65% compared to the previous week, reaching USD 5,194/FEU. This price increased by 100.70% compared to the previous month, according to Xeneta data.

Regularly follow the articles on Phaata International Logsitcs Marketplace to update market developments quickly.

Asia-North America Freight Rates | Week 23/2025 (Photo: Phaata.com)

US Tariff Updates:

The US tariff environment continues to be complex and volatile, requiring businesses to closely monitor and plan for timely responses. Here are the most important updates.

- Steel and aluminum tariffs doubled to 50%

On June 3, the Trump administration issued an official proclamation, increasing tariffs on steel, aluminum, and derivative products from 25% to 50%. The new tariffs will take effect at 12:01 a.m. (ET) on June 4.

Highlights from the proclamation include:

- UK: Exempted from this tariff increase, under the US-UK Economic Prosperity Agreement (EPD). However, the 25% tariff may increase again after July 9 if the UK fails to meet the conditions of the EPD agreement.

- Mexico and Canada: Steel and aluminum goods from these two countries will also be subject to the new 50% tariff, even if the goods qualify under the United States–Mexico–Canada Agreement (USMCA). In addition, the order of priority for applying the tariffs has been revised: Section 232 tariffs will be applied in place of IEEPA tariffs on goods from Mexico and Canada.

- Reciprocal tariff coverage: Reciprocal tariffs now also apply to non-steel and non-aluminum components of products.

- Enhanced enforcement: U.S. Customs and Border Protection (CBP) will issue formal guidance requiring strict compliance and outlining maximum penalties for non-compliance.

- Update on IEEPA “Transit” Exemption from Reciprocal Duty

On May 30, CBP made an important announcement, extending the deadline for eligible shipments to be exempted from reciprocal duty “in transit” to June 16, 2025.

Previously: Shipments needed to be loaded on the final ocean vessel and en route to the U.S. by April 5, 9, or 10 (depending on the applicable exemption) AND had to arrive in the U.S. by May 27.

Under the new guidance: Goods may be eligible for exemption if they are “cleared for consumption, or removed from bonded storage for consumption” by June 16, 2025. This is a significant change, relaxing the requirement from “date of arrival” to “date of clearance.”

- Legal Status of IEEPA Tariffs: Still in Effect

Here’s a complicated legal development with an important conclusion for businesses:

On May 29, less than a day after the Court of International Trade (CIT) invalidated four of President Trump’s IEEPA tariff orders, the U.S. Court of Appeals for the 12th Circuit issued a temporary stay.

The most important implication: The temporary stay allows the IEEPA tariffs to remain in effect and be collected by CBP while the Court of Appeals considers the case.

What’s Next: The parties have until June 5 to respond (the plaintiffs have until June 9). The case could drag on for months and could be appealed to the Supreme Court. However, given its national importance, a final decision could come sooner than expected.

3. Asia-Europe Ocean Freight Rates

The Asia-Europe shipping market is facing a challenging period, characterized by a double crisis: operational efficiency due to port congestion and a severe reduction in supply capacity. This situation is pushing freight rates up and creating major risks for supply chains.

On supply-demand and operational issues

- Severe port congestion on both ends of the continent:
One of the root causes of the current disruptions is severe congestion at hub ports. This is not only happening in Europe (at ports such as Antwerp, Hamburg, Bremerhaven) but also spreading to major Asian transshipment ports (such as Shanghai, Singapore), causing long delays and disrupting vessel schedules.

- Severe capacity reduction and consequences:
The situation is getting worse as supply capacity on the FEWB has been cut by up to 17%. The reason is that shipping lines have proactively shifted a portion of their vessels to operate on the more active and profitable Trans-Pacific (TPEB) route.

- Direct consequences on the market:
The combination of congestion and reduced capacity has led to the following inevitable consequences:

+ Scarcity of space: Most shipping lines are fully booked for the first half of June. Businesses are now required to book 2 to 3 weeks in advance.

+ Increased risk of rollover: The situation of missed shipments is increasing and is likely to continue to affect the final sailings of June.

+ Selective shipping lines in accepting bookings: With market power tilted in their favor, shipping lines are now very selective in accepting booking requests. Last-minute options are almost non-existent.

Freight Rates: End of Prolonged Decline

Container freight rates from Asia to Northern Europe in the week of 23/2025 reversed sharply, increasing by 29.46% compared to the previous week, to USD 2,373/FEU. This is an increase of 15.03% compared to the previous month, according to Xeneta data.

The old price floor has been broken: It is important to emphasize that the old price floor, which fluctuated around USD 1,800-1,900/FEU, is no longer available. It is impossible to find space at this price.

Spot Rates Soar: The spot market on the FEWB has surged by more than 23% and is expected to continue to climb in the coming weeks.

Surcharge Increases: To cope with rising operating costs and market conditions, shipping lines have also introduced Peak Season Surcharges (PSS), further increasing the total shipping costs.

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

Asia-Europe Freight Rates | Week 23/2025

Asia-Europe Freight Rates | Week 23/2025 (Photo: Phaata.com)

4. North America - Asia Ocean Freight Rates

Freight rates from North America (West Coast) to Asia in week 23/2025 remained stable at 635 USD/FEU as last week. This price increased by 1.93% compared to the previous month, according to Xeneta data.

North America (West Coast) - Asia freight rates | Week 23/2025

North America (West Coast) - Asia freight rates | Week 23/2025 (Photo: Phaata.com)

5. Northern Europe - Asia Ocean Freight Rates

Freight rates from Northern Europe to Asia in week 23/2025 increased sharply by 20% compared to the previous week, reaching 258 USD/FEU. This price increased by 39.46% compared to the previous month, according to Xeneta data.

Container Freight rates from Northern Europe to Asia | Week 23/2025

Container Freight rates from Northern Europe to Asia | Week 23/2025 (Photo: Phaata.com)

6. Conclusion and Recommendations from Phaata

The international transport and logistics market is in a state of extreme volatility, with indices soaring at an unprecedented rate. The fact that Drewry's global composite WCI index has increased by 41% in just one week is a red flag, indicating that the supply-demand imbalance has spread globally and is no longer a problem for any particular route.

North America: Facing a "demand shock" as businesses race to import goods before the end of US tariff suspension policies. Fueled by the race to transport goods before the end of US tariff suspension policies, creating an early and intense peak season. The skyrocketing freight rates (up more than 71% for the week to the West Coast) are a direct result of this shock.

Europe: Facing a severe “supply shock” due to widespread port congestion and capacity being diverted to the US by shipping lines, freight rates have skyrocketed. The nearly 30% increase in freight rates this week was not due to a surge in demand, but rather a collapse in operating efficiency (severe port congestion at both ends) and a capacity cut of up to 17% as shipping lines diverted vessels to the more profitable Asia-North America trade route.

The spillover effect is clear: the North American boom is directly destabilizing and tightening supply to the European market. In addition, the increasingly complex and unpredictable US trade policy and regulatory environment (with developments on steel/aluminum tariffs and the IEEPA tax case) is posing a major challenge to long-term strategic planning for businesses.

In this context, market power has been completely tilted towards shipping lines. The era of stable and predictable freight rates is over.

Recommendations from Phaata

Businesses need to act decisively and move to crisis management mode:

Immediate action - Secure space: The top priority is to secure space on vessels. Bookings should be made at least 4-6 weeks in advance and consider using premium services for urgent shipments to avoid the risk of rollover.

Operations and financial management:

- Re-forecast budgets due to increased logistics costs.

- Enhance ongoing communication with logistics partners to proactively respond to delays and disruptions.

Adjust strategy:

- Increase safety stock levels to compensate for longer and uncertain transit times.

- Reassess supply strategy, consider diversification options to minimize the risk of dependence on a single route.
- Always update the fluctuations in trade and tariff policies to make timely adjustments.

Use Phaata to optimize costs and improve competitiveness: Exporting enterprises should use Phaata logistics trading platform to find good freight rates in the market, optimize logistics costs, improve competitiveness and increase profits for each shipment.

The market will continue to fluctuate in the coming weeks. Careful preparation, quick adaptability and a proactive risk management strategy will be the key for businesses to not only overcome but also find opportunities in this challenging period.

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