International shipping and logistics market update - Week 7/2025

Update on international shipping and logistics markets for Asia, Europe and North America in Week 7/2025.

International shipping and logistics market update - Week 7/2025

Drewry's composite global container freight rate index in Week week 7/2025 continued to decline by 5% compared to the previous week, to USD 3,095/FEU. This freight rate index is 118% higher than the average of 2019 before the pandemic (USD 1,420).

Drewry’s World Container Index Week 7/2025 (Photo: Phaata | Source: Drewry)

1. Asia - Northern America route

Ocean freight rates from Asia to the West Coast of North America continued to decline by 1.17% compared to the previous week, to USD 4,900/FEU. This rate is down 9.23% compared to the previous month, according to Xeneta data.

Demand remains weak after the Lunar New Year, putting downward pressure on freight rates. Carriers have reduced spot rates for both the West and East coasts to stimulate demand. Phaata forecasts that rates will continue to fall through Week 8, with rates likely to increase in Weeks 9 and 10. Carriers are expected to adjust PSS in mid-February.

Blank sailings announced before the Lunar New Year are now impacting market capacity. Despite the slowdown in demand, most carriers reported high vessel utilization in February due to reduced capacity adjustments. Carriers are expected to accept overbookings in preparation for March.

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

Tariff Update & De Minimis Exemptions:

President Trump announced a 25% tariff on all steel and aluminum imports, effective March 12. He added that tariffs on these metals may go higher and will not be eligible for refunds. The full list of products subject to the upcoming tariffs is pending and will be published in the Federal Register.

Canada, Brazil, and Mexico are the top three suppliers of steel to the United States. According to the International Trade Administration, from March 2024 to February 2025, these three countries accounted for nearly 50% of U.S. steel imports.

Asia-Northern America Freight rate | Week 7/2025 Asia-US West Coast Freight rate | Week 7/2025 (Image: Phaata.com)

2. Asia - Northern Europe route:

Freight rates from Asia to North Europe continued to decline sharply by 3.42% week-on-week in week 7/2025, down to USD 3,139/FEU. This is down 32.71% month-on-month, according to Xeneta data.

The recovery of cargo after the Lunar New Year remains slow. However, many cargo activities and markets will pick up after Week 9 (early March). Currently, no new cancellations have been announced in late February, leading to an oversupply situation. This is likely to lead to further price declines in the market, as demand remains weak. Despite the weak market situation, shipping lines are maintaining long-term fixed rates. If market demand does not pick up, Phaata predicts that shipping lines may cancel more sailings at the last minute to reduce overcapacity and stabilize freight rates.

The Shanghai Container Freight Index (SCFI) fell significantly in Week 7, after two weeks of stability during the Chinese New Year. While current FAK rates are expected to decline in the short term until volumes recover, carriers are likely to implement additional measures to prevent a significant market decline.

Historical data shows that the market usually normalizes 2-3 weeks after the Chinese New Year, so freight rates are likely to stabilize by the end of February.

The situation in the Suez Canal is gradually stabilizing after previous disruptions due to attacks in the Red Sea. The Houthis have declared compliance with the ceasefire in Gaza signed last month and announced a halt to attacks on commercial vessels in the area. However, major shipping lines remain cautious, prioritizing security measures before resuming normal operations. The Suez Canal Authority (SCA) is actively implementing measures to restore traffic through the canal, amid improved security. On Monday, the SCA released new navigation maps for a planned 10-kilometer widening of the canal, which will increase capacity and allow for an additional 6-8 ships to pass through each day.

Asia-Northern Europe Freight rate | Week 7/2025 (Image: Phaata.com)

3. Northern America - Asia route:

Freight rates from North America (West Coast) to Asia in week 7/2025 decreased by 0.92% compared to the previous week, to USD 647/FEU. This price is down 7.44% compared to the previous month, according to Xeneta data.

Northern America - Asia Freight rate | Week 7/2025 US West Coast - Asia Freight rate | Week 7/2025 (Image: Phaata.com)

4. Northern Europe-Asia route:

Freight rates from North Europe to Asia week 7/2025 decreased by 1.59% compared to the previous week, to USD 247/FEU; this price is down 15.41% compared to the previous month, according to Xeneta data.

Northern Europe - Asia Freight rate | Week 7/2025 (Image: Phaata.com)