International shipping and logistics market update - Week 4/2025

Update on international shipping and logistics markets for Asia, Europe and North America in Week 4/2025.

International shipping and logistics market update - Week 4/2025

Drewry's composite global container freight rate index in Week 4/2025 decreased by 11% compared to the previous week, to USD 3,445/FEU. This freight rate index is 143% higher than the average of 2019 before the pandemic (USD 1,420).

Drewry Composite World Container Rate Index Week 4/2025 Drewry’s World Container Index Week 4/2025 (Photo: Phaata | Source: Drewry)

1. Asia - Northern America route

Ocean freight rates from Asia to the West Coast of North America in week 4/2025 decreased by 1.87% compared to the previous week, to USD 5,154/FEU. This price increased by 13.05% compared to the previous month, according to Xeneta data.

Shipping lines have reduced short-term rates for both the West Coast and East Coast to stimulate demand ahead of the Lunar New Year. Shipping lines are expected to adjust PSS in mid-February.

Shipping lines have planned to cancel many sailings during the Lunar New Year period and adjust their service networks. Available capacity is expected to decline starting from Week 5 and remain limited until Week 8, after which it is expected to increase again.

Due to increased demand ahead of the Lunar New Year, space is generally limited. However, some routes to the West Coast remain largely unaffected.

There are currently no significant shortages of container equipment at Asian origin ports.

Asia-North America Freight Rates | Week 4/2025 Asia-US West Coast Freight rate | Week 4/2025 (Image: Phaata.com)

2. Asia - Northern Europe route:

Asia-North Europe freight rates in week 4/2025 fell sharply by 6.94% week-on-week to $4,039/FEU. This is down 20.18% month-on-month, according to Xeneta data.

Factory closures during the Lunar New Year period are expected to be concentrated around Weeks 3-4. This will reduce market demand; however, the impact will be mitigated by ongoing carrier equipment shortages.

This year’s Lunar New Year came earlier than usual, combined with the short gap between Christmas and Lunar New Year, which has significantly narrowed production and shipping times. As a result, the expected rush of deliveries before Lunar New Year has not occurred and is unlikely to occur before Lunar New Year.

The Lunar New Year period will provide an opportunity for carriers to restructure their shipping alliances and effectively adjust the allocation of existing capacity. Both capacity and freight rates are expected to transition smoothly, with the market remaining relatively oversupplied.

Phaata forecasts no significant changes in the total capacity of the new alliances. However, a new wave of market share competition among shipping lines is expected to intensify after work resumes after the Lunar New Year holiday.

The ceasefire between Israel and Gaza, effective from January 19, 2025, has yet to prompt shipping lines to make decisions on resuming affected routes. In the short term, this is unlikely to result in a drop in freight rates.

The European economy is still sluggish. The recent increase in US tariffs on Chinese goods could stimulate export demand from China to Europe and other regions, potentially boosting trade. Demand on the Asia-Europe trade may pick up slightly after the Lunar New Year.

Phaata forecasts that Asia-Europe freight rates will continue to trend downward in the coming weeks.

Asia-Europe Freight Rates | Week 4/2025 Asia-Northern Europe Freight rate | Week 4/2025 (Image: Phaata.com)

3. Northern America - Asia route:

Freight rates from North America (West Coast) to Asia in week 4/2025 decreased by 1.78% compared to the previous week, to USD 661/FEU. This price decreased by 4.48% compared to the previous month, according to Xeneta data.

Freight rates from North America (West Coast) to Asia | Week 4/2025 US West Coast - Asia Freight rate | Week 4/2025 (Image: Phaata.com)

4. Northern Europe-Asia route:

Freight rates from North Europe to Asia in week 4/2025 increased by 3.72% compared to the previous week, to USD 307/FEU; This price is down 10.23% compared to the previous month, according to Xeneta data.

North Europe - Asia Freight Rates | Week 4/2025 Northern Europe - Asia Freight rate | Week 4/2025 (Image: Phaata.com)