International Shipping and Logistics Market Update - Week 18/2025 | Phaata

International shipping and logistics market update - Week 17/2025

Table of Contents

1. World Container Index Week 18/2025

2. Asia - North America Ocean Freight Rates

3. Asia - Europe Ocean Freight Rates

4. Northern America - Asia Ocean Freight Rates

5. Northern Europe - Asia Ocean Freight Rates

6. Conclusions and Market Reviews by Phaata

1. World Container Index Week 18/2025

Drewry's Global Composite Container Freight Rate Index in Week 18/2025 continued to decrease by 3% to 2,091 USD/FEU compared to the previous week. This rate index is 47% higher than the pre-pandemic average of 2019 ($1,420).

Drewry's World Container Index Week 18/2025 (Photo: Phaata)

2. Asia-North America Ocean Freight Rates

Ocean freight rates from Asia to the West Coast of North America in Week 18/2025 continued to decline by 3.19% week-on-week to $2,671/FEU. This is down 8.06% month-on-month, according to Xeneta data.

In Week 18, the capacity offered by shipping lines was 17% lower than usual on the Asia-US West Coast trade. This was due to a significant drop in demand and subsequent cancellations of sailings on the China-US trade. However, demand from China did not decline further compared to the previous week. There has not been any significant increase in demand from Southeast Asian countries yet.

Shipping lines have significantly reduced capacity in May. Currently, 29% of sailings have been canceled for the week of May 5, reducing capacity from China to the US to around 70%. Lines are canceling sailings due to the sharp drop in demand. Our information shows that demand since April 2 (the day the US announced the reciprocal tariffs) is around 49% lower than the average of the previous 4 weeks. Phaata also attributed the decline to the impact of the Labor Day holiday in China.

Currently, there are 10 services that have been temporarily or indefinitely suspended by the Ocean Alliance (CMA CGM, COSCO, Evergreen and OOCL), Premier Alliance (ONE, HMM, YML) and ZIM/MSC.

In terms of equipment, the overall supply of container equipment at the ports remains secure at present. There are no significant concerns about shortages at present.

In terms of freight rates, most carriers have announced General Rate Increases (GRIs), effective from May 1. This GRI may be an attempt to maintain rates after the carriers have sharply cut supply. However, rates are still on a downward trend.

In late April and early May (Weeks 17-19), over 25% of weekly services were cancelled. By comparison, Week 19 of 2020, during the early stages of COVID, had a cancellation rate of 24%. There is little information available on Week 20 and beyond, as carriers are closely monitoring market developments and may announce additional cancellations depending on changes in demand. Please regularly follow the articles on Phaata International Logsitcs Marketplace to update market developments quickly.

Asia-North America Freight Rates | Week 18/2025 (Photo: Phaata.com)

US Tariff Update:

US Customs and Border Protection (CBP) provides important clarification on Section 232 tariffs: On April 28, CBP clarified that steel and aluminum derivatives subject to Section 232 tariffs are excluded from IEEPA reciprocal tariffs. Prior to CBP's announcement, it was unclear whether reciprocal tariffs would apply to the non-steel or non-aluminum content of steel and aluminum derivatives.

CBP clarifies IEEPA In-Transit Exemption limited to vessels only: On April 30, CBP clarified that the In-Transit Exemption applies only to vessels—not to air, rail, truck, or any other mode of transportation. Goods that move via another mode after April 5 will be subject to reciprocal tariffs. Additionally, shipments that begin by vessel and arrive in the United States via another mode of transportation, commonly referred to as transshipment, are not subject to this exemption.

Trump Administration clarifies duty rules for products subject to overlapping tariffs: On April 29, President Trump signed an executive order addressing the overlapping effects of certain tariffs, stating that the tariffs exceed the amount necessary to achieve the president’s policy objectives. To reduce the cumulative impact of overlapping tariffs on certain items, the order establishes procedures for determining which tariff measures apply, as follows:

Automobiles and auto parts subject to the 25 percent tariff under Proclamation 10908 will not be subject to the Section 232 tariff on steel and aluminum products and their derivatives, nor the 25 percent “fentanyl” tariff under IEEPA that applies to products from Canada and Mexico.

Goods from Canada or Mexico that are not originating under the USMCA rules of origin and subject to the fentanyl tariff under IEEPA will not be subject to the Section 232 tariff on steel and aluminum products and their derivatives.

Steel and aluminum products and their derivatives that contain both steel and aluminum will be subject to the tariff measures set forth in both the Section 232 steel order and the Section 232 aluminum order, to the extent that each applies to the product. The nonmetallic content of the derivatives remains excluded from these tariffs.

The above rules apply retroactively to entries filed on or after March 4, 2025. Normal Trade Relations tariffs; IEEPA fentanyl tariffs on Chinese goods; IEEPA reciprocal tariffs; Section 301 tariffs; and antidumping or countervailing duties continue to apply in addition to the tariffs listed above.

3. Asia-Europe Ocean Freight Rates

Container rates from Asia to Northern Europe fell sharply by 9.85% week-over-week in week 18/2025 to $2,087/FEU. This is down 3.82% month-over-month, according to Xeneta data.

Asian factory exports have improved slightly and are expected to see a modest recovery in early May, largely due to seasonal summer replenishment.

European demand remains weak with no signs of recovery. Demand is unlikely to pick up significantly due to macroeconomic uncertainty, persistent inflationary pressures and weak consumer spending.

Overcapacity on the European route continues. Carriers are actively managing space through sailing cancellations: April sailing cancellations‌ were at ‌5-8%‌, while the forecast for May sailing cancellations is 8-10%.

Container equipment supply remains generally stable at Asian ports.

In terms of freight rates, the Shanghai Container Freight Index (SCFI) has remained stable for seven consecutive weeks, but is on a slight decline, down -2% week-on-week in mid-April. This trend is expected to continue until mid-May.

Phaata international logistics marketplace forecasts that freight rates on the Asia-Europe route are likely to continue to adjust downwards in the coming weeks.

Asia-Europe Freight Rates | Week 18/2025 (Photo: Phaata.com)

4. North America - Asia Ocean Freight Rates

North America (West Coast) to Asia freight rates in week 18/2025 remained stable compared to the previous week, down slightly by 0.32% to $626/FEU. This is down 1.42% month-on-month, according to Xeneta data.

North America (West Coast) - Asia freight rates | Week 18/2025 (Photo: Phaata.com)

5. Northern Europe - Asia Ocean Freight Rates

Freight rates from Northern Europe to Asia in week 18/2025 decreased sharply compared to the previous week, down 19.23%, to 189 USD/FEU; this price decreased 11.27% compared to the previous month, according to Xeneta data.

Container Freight rates from Northern Europe to Asia | Week 18/2025 (Photo: Phaata.com)

6. Conclusion and Market Reviews by Phaata

The market is in a strong adjustment phase: The current market driver is not the lack of capacity (like the post-COVID period) but the severe decline in demand for freight on the main East-West routes.

Pressure on freight rates remains high: Carriers’ capacity management efforts can only partially curb the decline, but are unlikely to reverse the trend as demand has yet to show clear signs of recovery. The failure of GRI on May 1 shows that the market power is tilted towards buyers (shippers).

Macroeconomic and policy uncertainty continues to weigh: The European economic situation and US trade policies are key risk factors to watch, which are likely to continue to hold back demand recovery.

Keep a close eye on demand developments and carrier actions: The extent to which carriers will continue to cancel sailings in the coming weeks (after Week 19/20) will be a key indicator. Any signs of improving (or worsening) demand will directly impact freight rates and capacity conditions.

For Shippers: This may be a period of more favorable freight rates, but it is important to note the stability of schedules due to high cancellation rates. Supply chain planning needs to be more flexible.

Overall, the international container shipping market in Week 18/2025 is showing a rather gloomy picture with weak demand being the biggest challenge. The short-term outlook remains uncertain and depends largely on economic recovery as well as geopolitical factors. Phaata International Logsitcs Exchange recommends that import-export businesses and logistics companies closely monitor market indicators and updated information to make appropriate adjustments.

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See more:

• Global air freight trends Week 17 (2025) by WorldACD
• OOCL orders 14 methanol-fueled container ships as part of major fleet expansion
• Container shipping rates remain stable amid China-US tariff storm
• US Gulf Coast ports see volume increase in March
• US diesel prices fall for third straight week, hit 2025 low
• Trump plans to ease import tariffs to help US auto industry
• IATA: March sets new record for air freight as cargo builds up ahead of tariffs
• Kuehne+Nagel: Air freight continues to grow strongly despite tariff tensions
• International shipping and logistics market update - Week 17/2025
• Blank sailings soften drop in container spot rates
• Drewry: Global container volume forecast to fall 1% due to trump tariff war
• Shipping industry braces for demand collapse
• COSCO Shipping Lines: US port charges threaten global supply chain
• “Tariff shockwave” causes sharp decline in global container shipping bookings
• IMO approves global net zero emissions regulation for shipping

Source: Phaata.com

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