International shipping and logistics market update - Week 9/2025

Update on international shipping and logistics markets for Asia, Europe and North America in Week 9/2025.

International shipping and logistics market update - Week 9/2025

Drewry's global composite container freight rate index continued to decline in the week 9/2025, down 6% to $2,629/FEU compared to the previous week. This freight rate index is 85% higher than the pre-pandemic average of 2019 ($1,420). This downward trend reflects the lingering impact of weak demand after the Lunar New Year and concerns about overcapacity.

Drewry’s World Container Index Week 9/2025 (Photo: Phaata | Source: Drewry)

1. Asia - Northern America route

Ocean freight rates from Asia to the West Coast of North America in week 9/2025 continued to fall sharply by 8.25% compared to the previous week, down to USD 3,772/FEU. This price decreased by 26.04% compared to the previous month, according to Xeneta data.

Demand for transportation has increased but is still weak. In addition, transportation capacity is recovering rapidly after the Lunar New Year, currently reaching over 90%. Currently, there is more space on board than before the Lunar New Year, indicating an oversupply in the market.

Spot rates are falling rapidly in the second half of February and could extend into March if demand recovers slowly.

Floating rates are falling rapidly in the remainder of February and into March. General Rates (GRI) are unlikely to increase in March. This suggests downward pressure on prices, possibly due to increased capacity and relatively low demand. On the fixed side, Peak Season Surcharges (PSS) are being reduced slightly in March, while floating rates are trending lower.

Equipment conditions have improved, with container supply now adequate at most major Asian ports.

US tariff update:

President Trump announced a 25% tariff on all steel and aluminum imports, effective March 12. He added that the 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 steel suppliers to the United States. According to the International Trade Administration, from March 2024 to February 2025, these three countries accounted for nearly 50% of US steel imports.

President Trump continued to state that he could impose 25% tariffs on autos, pharmaceuticals, and semiconductors as early as April 2, 2025. However, it is unclear whether the tariffs would apply to all imported vehicles or target specific countries. If implemented, the new tariffs could have a significant impact on major auto exporters to the United States, including Mexico, Japan, and Canada.

President Donald Trump last week renewed his threat to impose a 25% tariff on imports from the European Union, the United States’ third-largest trading partner after China.

The United States Trade Representative (USTR) has announced a proposal to impose steep fees on Chinese shipping companies and Chinese-built vessels calling at U.S. ports. Meanwhile, operators with U.S.-built vessels could be reimbursed up to $1 million per U.S. port call.

Container ships typically call U.S. ports two to three times per round trip. Under the proposal, Chinese shipping companies and Chinese-built vessels calling at U.S. ports could face additional fees of more than $3 million per voyage. This is a significant cost compared to the typical revenue of $10-15 million per voyage. This is equivalent to $250-300 per TEU.

Some carriers and operators may be able to avoid these proposed charges through network redesign. At this point, the impact on individual companies will be difficult to predict, as it depends on the mix of carriers behind the supply chain and the chains they ship to.

China produces about 70% of the world’s green ships, while the number of container ships built in the United States is relatively small. There are currently 18 US-built ships, with three more on order.

Asia-US West Coast Freight rate | Week 9/2025 (Image: Phaata.com)

2. Asia - Northern Europe route:

Container freight rates from Asia to Northern Europe continued their downward trend in week 9/2025, but the pace slowed down, down 2.96% from the previous week to USD 2,717/FEU. This price is down 30.78% compared to the previous month, according to Xeneta data.

The recovery of goods after the Lunar New Year is still slow. However, the market is expected to improve after Week 9 (early March). The rapid recovery of capacity after the Lunar New Year led to a situation of oversupply, causing freight rates to drop sharply.

To prevent the decline in prices, shipping lines have announced many blank sailings. This affected the transport capacity from late February to early March.

Most carriers announced GRIs in early March with an expected increase of over 50% compared to current prices in an effort to increase freight rates. Market demand is still weak to support this price increase. Therefore, carriers still have to continue to make efforts to find cargo for this period.

Phaata predicts that the freight rate increase in March is unlikely to reach the announced level. However, the announcement of this GRI may help to prevent the price decline and even create a slight increase in March.

Bookings from late February to early March were not significantly affected by the GRI. Cargo volume in week 9 remained at around 75%-85% of the normal weekly volume before Tet.

To date, there has been no significant increase in demand and bookings are proceeding smoothly with no reports of space or equipment shortages.

Asia-Northern Europe Freight rate | Week 9/2025 (Image: Phaata.com)

3. Northern America - Asia route:

Freight rates from North America (West Coast) to Asia in week 9/2025 continued to decrease by 0.94% compared to the previous week, down to USD 630/FEU. This price decreased by 5.55% compared to the previous month, according to Xeneta data.

US West Coast - Asia Freight rate | Week 9/2025 (Image: Phaata.com)

4. Northern Europe-Asia route:

Freight rates from North Europe to Asia in week 9/2025 decreased by 2.39% compared to the previous week, down to USD 245/FEU; This price is down 21.47% compared to the previous month, according to Xeneta data.

Northern Europe - Asia Freight rate | Week 9/2025 (Image: Phaata.com)