International shipping and logistics market update - Week 5/2025
Update on international shipping and logistics markets for Asia, Europe and North America in Week 5/2025.
International shipping and logistics market update - Week 5/2025
Drewry's composite global container freight rate index in Week 5/2025 decreased by 2% compared to the previous week, to USD 3,364/FEU. This freight rate index is 137% higher than the average of 2019 before the pandemic (USD 1,420).
Drewry’s World Container Index Week 5/2025 (Photo: Phaata | Source: Drewry)
1. Asia - Northern America route
Ocean freight rates from Asia to the West Coast of North America in week 5/2025 decreased by 1.92% compared to the previous week, to USD 5,055/FEU. This price increased by 10.08% compared to the previous month, according to Xeneta data.
Lower demand due to the Lunar New Year holiday has put downward pressure on freight rates. Shipping lines have reduced spot rates for both the West Coast and East Coast to stimulate demand. Shipping lines are expected to adjust PSS in mid-February.
Shipping lines have canceled many sailings during the Lunar New Year period and adjusted 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.
There are currently no significant shortages of container equipment at Asian origin ports.
Asia-US West Coast Freight rate | Week 5/2025 (Image: Phaata.com)
2. Asia - Northern Europe route:
Freight rates from Asia to North Europe continued to decline sharply by 8.22% week-on-week in Week 5/2025, down 26.26% month-on-month, according to Xeneta data.
Factories were closed for the Lunar New Year holiday in Weeks 3-4, causing market demand to decline.
To prevent under-utilization of vessels, shipping lines have cancelled many sailings before and after the Lunar New Year holiday. This will lead to a backlog of cargo at major ports. Many shipments are expected to be delayed for two weeks at ports to be loaded onto vessels.
The Lunar New Year period has provided an opportunity for shipping lines to restructure their shipping alliances, adjusting the effective allocation of existing capacity. Both capacity and freight rates are expected to transition smoothly, with the market still relatively oversupplied. Maersk and Hapag-Lloyd launch “Gemini” cooperation, with the new alliance services to be launched in February, which is expected to increase the reliability of shipping services.
Phaata does not expect any 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-Northern Europe Freight rate | Week 5/2025 (Image: Phaata.com)
3. Northern America - Asia route:
Freight rates from North America (West Coast) to Asia in week 5/2025 increased by 1.82% compared to the previous week, to USD 673/FEU. This price decreased by 2.75% compared to the previous month, according to Xeneta data.
US West Coast - Asia Freight rate | Week 5/2025 (Image: Phaata.com)
4. Northern Europe-Asia route:
Freight rates from North Europe to Asia in week week 5/2025 increased by 0.33% compared to the previous week, to USD 308/FEU; This price is down 9.94% compared to the previous month, according to Xeneta data.
Northern Europe - Asia Freight rate | Week 5/2025 (Image: Phaata.com)
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See more:
- Maersk and Hapag-Lloyd launch “Gemini” cooperation
- Container Freight Market: A Game of Snakes and Ladders
- Asia-US container rates trend lower, but Trump tariff risk weighs on global trade
- International shipping and logistics market update - Week 4/2025
- FIATA World Congress 2025, VLA launches Road Show: Green Logistics - Sustainable Destination
- HMM Boosts Asia-East Coast South America
- Global Container Freight Rates Fall
- Trans-Pacific Container Rates Forecast to Rise Ahead of New US Tariffs
- Early Tet demand continues to put pressure on container rates on Asia-US trade
Source: Phaata.com
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