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Monday, 18/08/2025, 06:49 (GMT +7)

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International Shipping and Logistics Market Update - Week 33/2025 | Phaata

Phaata International Logistics Marketplace updates the international container shipping and logistics market for routes from Asia to North America, Europe... in Week 33/2025 (Aug 11 to Aug 17, 2025).

International shipping and logistics market update - Week 33/2025

Download International Logistics Market Update Report Week 33 here

1. World Container Index Week 33/2025

The Drewry WCI continued to decline for the ninth consecutive week, falling another 3% to $2,350/FEU in week 33/2025 (August 11-August 17, 2025).

Drewry's World Container Index Week 33/2025

Drewry's World Container Index Week 33/2025 (Photo: Phaata)

2. Asia-North America Ocean Freight Rates

The Asia-North America container shipping market in Week 33 (August 11-August 17, 2025) has seen a significant calm. The extension of the temporary tariff agreement between the United States and China for 90 days has removed the biggest uncertainty, while the latest data from the Port of Los Angeles has officially confirmed that the peak season actually took place earlier in Q2. As a result, the market has now entered a "new normal" phase, characterized by stable low-level demand, abundant capacity and a favorable freight environment for importers and exporters.

Supply and demand:

- On the demand side: Stable demand, no sudden changes

Demand in August remained flat. With the extension of the US-China tariff agreement, the forecast for September is not expected to see any sudden changes.

The Port of Los Angeles has just released data showing that July reached a record container volume (handling more than 1 million TEU). This record number is the clearest evidence of the wave of early import (frontloading) to avoid tariffs in Q2. This explains why market demand in August and September was "quieter" than the usual seasonal pattern. This year's peak season has come early and to some extent, ended.

The trend of higher cargo throughput at Southeast Asian ports compared to Chinese ports continues, confirming this is a structural change.

- On the Supply Side: Prolonged surplus

Operating capacity remains at 70-80% of the standard level. Despite some reductions, the market remains overcapacity relative to actual demand. Vessel slots are generally available.

Operations

Tropical storm Co-may has caused 2-3 days of delays at Chinese ports. The impact of the storm goes beyond the initial delays. In response, carriers have implemented schedule recovery programs, often including unplanned cancellations to catch up with overall schedules. This will result in a rush of vessels arriving at subsequent ports, causing a cascade of impacts and chain congestion to other important hubs such as Busan (South Korea).

On the issue of "China-based vessels": Carriers say the deployment of these vessels has been or is being completed, and the good news is that there have been no announcements of any related surcharges applied to cargo shipped to the US.

Container Situation

The overall situation has improved slightly. However, divergence remains: shortages remain a major concern for carriers such as CMA and HMM, while other carriers are in better shape.

Freight Rates:

Ocean Freight rates from Asia to the West Coast of North America continued to decline sharply by 5.91% week-on-week in week 33/2025, to $1,862/FEU. This is down 14.94% month-on-month, according to Xeneta data.

This is due to a combination of flat demand and the complete removal of Peak Season Surcharges (PSS) for August by carriers.

The biggest challenge for businesses now is no longer high transportation costs, but supply chain reliability. The risk has shifted from financial (freight rates) to physical (whether the goods are picked up and loaded on the ship on schedule).

Regularly follow the articles on Phaata International Logistics Marketplace to update in-depth and fast market developments.

Asia-North America Freight Rates | Week 33/2025

Asia-North America Freight Rates | Week 33/2025 (Photo: Phaata.com)

US Tariff Updates:

The highlight of Week 33 was the last-minute agreement between the United States and China to extend their interim trade agreement, avoiding a catastrophic collapse. The move brought a moment of precious stability to global supply chains. However, beneath the temporary calm, legal battles and a series of new tariffs imposed in recent weeks are shaping a challenging trade playing field.

1- The US-China Tariff Crisis Is Temporarily Lifted

On August 11, President Trump signed an executive order extending the interim trade agreement between the United States and China for another 90 days. The original deal, which was set to expire on August 12, will now be extended to November 10, 2025.

This means that the current tariffs (30% on Chinese goods entering the US and 10% on US goods entering China) will remain in place. Most importantly, it has prevented a return to the previous extremely punitive tariffs.

The extension provides a valuable window of stability for supply chains, but it is important to understand that this is only a temporary solution. The core issues in the US-China trade relationship remain unresolved, and the 90-day “countdown clock” has once again begun.

2- The Legal Battle Over Tariff Authority Continues

While the trade confrontation has subsided, the legal battle over the basis of these tariffs continues quietly but fiercely.

On August 11, attorneys for the administration filed a letter with the Court of Appeals, arguing that invalidating the President’s IEEPA tariffs would have “catastrophic consequences for national security, foreign policy, and the economy.”

This suggests that the administration will fight hard to preserve the IEEPA tariff tool that has been the basis for a series of recent trade actions. The legal uncertainty over these tariffs will continue for months, if not years, to come.

3- The “New Normal” of Trade Barriers

The extension of the US-China deal does not change the fact that a complex web of tariffs remains in effect:

- Country-by-country reciprocal tariffs: Revised tariff rates for nearly 70 trading partners remain in effect as of August 7.

- Tariff escalation with India: The additional 25% tariff on Indian goods will still be in effect from August 27.

- Tariff increase with Canada: The 35% “fentanyl” tariff will still be in effect from August 1.

Other threats to the semiconductor and pharmaceutical industries remain.

3. Asia-Europe Ocean Freight Rates

The Asia-North Europe market in Week 33 (August 11-17, 2025) has entered a "soft landing" phase after passing through the tense peak of July. Capacity pressure at loading ports has eased, creating favorable conditions for bookings and most importantly, spot rates have started a downward adjustment cycle. However, vessel delays are still persistent, requiring businesses to continue to be cautious in planning.

On supply and demand:

- On the demand side: Peak season comes to an end

As the traditional peak season (July-August) is coming to an end, the growth rate of output is slowing down and overall demand has shown signs of cooling down. The biggest wave of inventory replenishment for the festive season in Europe seems to have passed. Bookings for the second half of August sailings are now progressing more smoothly in terms of both slots and equipment pick-up.

- On the Supply Side: Capacity Pressures Have Eased Significantly

Supply in August and September is forecast to be adequate. However, there are complex factors that are keeping the market balanced rather than in surplus:

+ Planned capacity regulation: Average weekly capacity in the second half of August is planned to fall to 290,000 TEU (from 304,000 TEU in the first half).

+ Targeted extra vessel additions: In contrast, Evergreen and Maersk added around 46,000 TEU via extra loaders in the second half of August, possibly to clear backlogs or serve strategic customers.

+ The “invisible hand” of disruptions: The most important factor keeping the market from collapsing is operational disruptions. The impact of typhoons at Asian ports has caused vessel delays. This disruption is helping carriers maintain high vessel occupancy rates and keep the market relatively balanced, avoiding the deep price declines seen on the North American route.

Operations:

Although the pressure has eased, the "aftermath" from the peak congestion period is still there. Ship delays are still persistent. The cause comes from the domino effect of previous issues: schedule slippage, Changes of Vessels (COVs), and delays of vessels returning from Europe.

Equipment Situation

The overall situation has improved slightly compared to late July. However, shortages remain a major issue for CMA and HMM, while other carriers are in better shape. Carrier selection remains an important strategic factor.

Freight Rates:

Asia to Europe freight rates for week 33/2025 continued to decrease by 5.23% compared to the previous week, to USD 3,119/FEU. This is down 9.12% compared to the previous month, according to Xeneta data.

Carriers have cut FAK rates (all cargoes) slightly in early August, bringing spot rates back to the second half of July levels. This move was driven by capacity additions from additional vessels and lower-than-expected demand growth, especially from carriers with high FAK rates.

Phaata believes that the potential for further rate cuts is limited due to a combination of factors: (1) prolonged typhoon delays, (2) uncertainty over the schedule for blank sailings for the second half of August, and (3) a significant backlog of peak cargoes to be shipped. As a result, rates from Asia to Europe are expected to remain high in the coming weeks. Phaata forecasts that freight rates will gradually soften throughout the remainder of August.

Stay tuned to Phaata International Logsitcs Marketplace for in-depth and fast market updates.

Asia-Europe Freight Rates | Week 33/2025

Asia-Europe Freight Rates | Week 33/2025 (Photo: Phaata.com)

4. North America - Asia Ocean Freight Rates

Freight rates from North America (West Coast) to Asia in week 33/2025 remained stable compared to the previous week, at $632/FEU. This is down 2.62% compared to the previous month, according to Xeneta data.

North America (West Coast) - Asia freight rates | Week 33/2025

North America (West Coast) - Asia freight rates | Week 33/2025 (Photo: Phaata.com)

5. Northern Europe - Asia Ocean Freight Rates

Freight rates from Northern Europe to Asia continued to decline by 5.31% in week 33/2025 to $214/FEU. This is down 8.94% compared to the previous month, according to Xeneta data.

Container Freight rates from Northern Europe to Asia | Week 33/2025

Container Freight rates from Northern Europe to Asia | Week 33/2025 (Photo: Phaata.com)

6. Conclusion and Recommendations from Phaata

International logistics market Week 33/2025 has officially entered a post-peak "new normal" phase. The chaos of the previous months has passed, giving way to a more stable but also challenging environment. Market developments are shaped by three main factors: the simultaneous cooling of major shipping routes, persistent operational risks, and most importantly, a "strategic lull" on the geopolitical front.

Asia-North America: It is completely a "buyer's market". Data from the Port of Los Angeles confirms that the peak season has come early, leaving a large demand gap. The overcapacity situation is pushing freight rates further down, with rates to the West Coast falling below $2,000/FEU.

Asia-Europe: In the "controlled soft landing" phase. Demand has cooled since the July peak, and freight rates have begun a gradual downward adjustment cycle. However, operational issues and carrier capacity management strategies are preventing a price collapse.

Recommendations from Phaata

This relatively peaceful period is a golden time to act strategically, not to rest.

1. Priority Number One - Urgent Review of Supply Chain:

Businesses with goods exported to the US market need to review, analyze, and re-evaluate their supply chains. From there, develop an adjustment plan to ensure that their goods are not considered transit goods and are subject to high reciprocal taxes. Contact foreign suppliers and logistics partners to determine the status of shipments that are being and are about to be transported so that plans can be adjusted early. In addition, businesses should also plan for the worst-case scenario when the US considers them transit goods and imposes high taxes, so that they are always proactive in responding and minimizing damage.

2. Apply a Market-by-Market Adaptive Strategy for Logistics Operations:

For the North American market: Optimize costs but focus on reliability. Continue to take advantage of the low-price environment to negotiate. At the same time, prioritize managing operational risks at origin by selecting carriers with stable equipment supplies and building in contingency plans for weather delays.

For the European market: Negotiate against a backdrop of declining prices. The market is softening. This is a good time to start negotiating better rates for late Q3 and early Q4 shipments.

3. Navigating the New Trading Playground:

Reassess your supply map: Businesses with global supply chains need to reassess their supply map based on the new bilateral tariffs.

Prioritize transparency: In an environment where anti-avoidance measures are increasingly stringent, having a transparent supply chain and excellent origin documentation is a competitive advantage and an important safeguard.

4. Building "Defensive" Capabilities for the Future:

Phaata believes that resilience is now extremely important. Successful businesses in the new era will be those that build a flexible supply chain through diversification (both suppliers and logistics options), strategic partnerships, and real-time information visibility.

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