International Shipping and Logistics Market Update - Week 32/2025 | Phaata

International shipping and logistics market update - Week 32/2025

Table of Contents

1. World Container Index Week 32/2025

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 32/2025

The Drewry WCI continued to decline for the eighth consecutive week, falling another 3% to $2,424/FEU in week 32/2025 (August 4-10, 2025). The main reason was the sharp decline in demand for freight from Asia to the United States.

Drewry's World Container Index Week 32/2025 (Photo: Phaata)

2. Asia-North America Ocean Freight Rates

The Asia-North America container shipping market in Week 32 (August 4-10, 2025) continued to consolidate its “buyer’s market” status with further downward adjustments in freight rates. However, behind the favorable cost profile lies an increasingly complex operational picture. A structural shift in trade flows to Southeast Asia is becoming increasingly evident, while sudden disruptions such as bad weather are testing the resilience of shipping lines and the patience of shippers.

Supply and demand:

- On the demand side: August forecast to remain stable and Southeast Asia to rise

Overall demand in August remained flat. This week’s data shows that the total cargo throughput at Southeast Asian ports is higher than that of Chinese ports. This is a clear indication that the “China Plus One” supply chain diversification strategy is being vigorously implemented by major importers, creating a structural change in the trade flow on this route.

- On the Supply Side: Persistent Overcapacity

Although the operating capacity is at 70-80% of the standard level, the market is still in a state of overcapacity compared to demand. There is still a general lack of space on board.

Operations

Tropical Storm Co-may caused 2-3 days of delays at Chinese ports. The impact of the storm goes beyond the initial delays. In response, shipping lines have had to implement schedule recovery programs, often including unplanned blank sailings to catch up with the overall schedule. This will lead to a situation of vessel bunching at the following ports, causing a cascade impact and congestion to other important transshipment hubs such as Busan (Korea).

Container Situation

The overall situation has improved slightly compared to the end of July. However, differentiation remains, with shortages still a major concern for carriers such as CMA and HMM, while other carriers have better conditions.

Freight Rates: 

Ocean Freight rates from Asia to the West Coast of North America in week 32/2025 continued to fall sharply by 8.63% compared to the previous week, to USD 1,979/FEU. This price is down 19.19% compared to the previous month, according to Xeneta data.

The reason comes from a combination of flat demand and the fact that shipping lines have completely eliminated the Peak Season Surcharge (PSS) for August.

The biggest challenge for businesses now is no longer high transportation costs, but the reliability of the supply chain. The risk has shifted from financial issues (freight rates) to physical issues (whether the goods are picked up and loaded on the ship on schedule or not).

Regularly follow the articles on Phaata International Logistics Marketplace to update in-depth and fast market developments.

Asia-North America Freight Rates | Week 32/2025 (Photo: Phaata.com)

US Tariff Updates:

Week 32 marks the end of the wait. A series of previously proposed tariffs have officially taken effect, creating a complex, fragmented web of new trade rules. The United States has demonstrated an aggressive strategy: implementing announced tariffs, escalating pressure on key strategic partners, and using tariffs as an industrial policy tool to boost domestic production.

1- The New Tariff Era Officially Takes Effect

As of 12:01 a.m. (ET) on August 7, nearly 70 of America's trading partners have officially been subject to revised reciprocal tariffs under President Trump's executive order.

Countries not on the list will be subject to a base tariff of 10% (except China and Canada). A “transit” exemption applies to goods that boarded before August 7 and arrived in the United States before October 5. Specifically, a 40% tariff will be applied to goods that are determined to be in transit to evade tariffs.

2- Aggressive Escalation with Strategic Partners

India: On August 6, President Trump signed an executive order imposing a general 25% tariff on all imports from India, effective August 27. This tariff is on top of the 25% reciprocal tariff already in effect, potentially pushing the effective total tariff rate up to 50% on some items. Importantly, the reason given is “India’s import of certain Russian-origin petroleum products into the United States.” The signal could not be clearer: US trade policy is now directly tied to geopolitical and foreign policy issues.

Canada: The IEEPA “fentanyl” tax on imports from Canada has been increased from 25% to 35%, effective August 1.

3- Using Tariffs as an Industrial Policy Tool

President Trump announced plans to impose a 100% tariff on imported semiconductors, but intends to exempt companies that manufacture in the United States.

Similarly, he also said he could announce a pharmaceutical tariff as early as next week, with a roadmap to escalate from an “initial small” rate to 150% and 250% within 1-1.5 years.

These are typical examples of using tariffs as an industrial policy tool, to create extreme pressure to force companies to relocate production of strategic goods back to the United States (on-shoring/re-shoring).

4- The Ambiguous Future of Major Trade Relationships

EU: In a de-escalation move, the EU announced on August 4 that it would suspend its retaliatory tariffs for six months to allow more time for negotiations.

China: The 90-day interim agreement officially expired on August 12. Without an extension or a new agreement struck at the last minute, tariffs are at risk of returning to their previous extremely high levels (145% for Chinese goods and 125% for US goods). Although both sides have agreed to push for an extension, a final decision has yet to be made, throwing the world’s most important trade relationship into serious uncertainty.

3. Asia-Europe Ocean Freight Rates

The Asia-North Europe market in Week 32 (4-10 August 2025) is undergoing a “managed soft landing” from the peak of the peak season. Demand signals show slowing growth, but rates remain anchored at high levels. The main driver holding the market steady now is no longer booming demand, but supply-side factors, including unplanned disruptions and deliberate capacity management strategies.

On supply and demand: 

- On the demand side: Peak season comes to an end

As the traditional peak season (July-August) draws to a close, volume growth is slowing and overall demand has shown signs of cooling. The biggest wave of inventory replenishment for the festive season in Europe appears to have passed.

- On the Supply Side: A Complex Capacity Picture

Supply in August and September is forecast to be adequate. However, there are complex factors that are keeping the market balanced rather than in surplus:

+ Planned capacity regulation: Average weekly capacity in the second half of August is planned to fall to 290,000 TEU (from 304,000 TEU in the first half).

+ Targeted extra vessel additions: In contrast, Evergreen and Maersk added around 46,000 TEU via extra loaders in the second half of August, possibly to clear backlogs or serve strategic customers.

+ The “invisible hand” of disruptions: The most important factor keeping the market from collapsing is operational disruptions. The impact of typhoons at Asian ports has caused vessel delays. This disruption is helping carriers maintain high vessel occupancy rates and keep the market relatively balanced, avoiding the deep price declines seen on the North American route.

Operations:

Although the overall situation has improved slightly, operational risks remain a major challenge. Typhoons affecting Ningbo and Shanghai this week have caused temporary suspension of empty container pickups and are expected to cause delays to shipping schedules.

Equipment Situation

The overall situation has improved slightly compared to late July. However, shortages remain a major issue for CMA and HMM, while other carriers are in better shape. Carrier selection remains an important strategic factor.

Freight Rates:

Freight rates from Asia to Europe continued to decline by 2.11% week-on-week in week 32/2025 to $3,291/FEU. This is down 2.66% month-on-month, according to Xeneta data.

Carriers cut FAK rates (all cargoes) slightly in early August, bringing spot rates back to the second half of July levels. The move was driven by capacity additions from additional vessels and lower-than-expected demand growth, especially from carriers with a high FAK share.

Phaata believes that the potential for further rate declines is limited due to a combination of factors: (1) prolonged storm delays, (2) the lack of clarity on blank sailings for the second half of August, and (3) a significant backlog of peak cargoes that remain to be shipped. Therefore, freight rates from Asia to Europe are forecasted to remain high in the coming weeks.

Stay tuned to Phaata International Logsitcs Marketplace for in-depth and fast market updates.

Asia-Europe Freight Rates | Week 32/2025 (Photo: Phaata.com)

4. North America - Asia Ocean Freight Rates

The freight rate from North America (West Coast) to Asia in the week of 32/2025 decreased slightly by 0.94% to USD 632/FEU. This is a decrease of 2.62% compared to the previous month, according to Xeneta data.

North America (West Coast) - Asia freight rates | Week 32/2025 (Photo: Phaata.com)

5. Northern Europe - Asia Ocean Freight Rates

The freight rate from North Europe to Asia in the week of 32/2025 decreased by 4.64% to USD 226/FEU. This is a decrease of 4.64% compared to the previous month, according to Xeneta data.

Container Freight rates from Northern Europe to Asia | Week 3/2025 (Photo: Phaata.com)

6. Conclusion and Recommendations from Phaata

The international logistics market in Week 32/2025 is shaped by three key factors: an “asymmetric” market, persistent operational risks, and most importantly, a geopolitical-trade crisis at its peak.

Asia-North America: It is a complete “buyer’s market”. Freight rates continue to fall sharply (down more than 8% for the West Coast this week) due to oversupply. However, the main challenge has shifted from costs to schedule reliability due to origin disruptions (hurricanes, congestion).

Asia-Europe: In the “managed soft landing” phase. Peak season demand has cooled, but freight rates remain anchored at high levels thanks to a combination of carrier capacity management strategies and “invisible” operational disruptions that tighten supply.

Recommendations from Phaata

In this context, preparation and risk management are vital.

1. Priority Number One - Urgent Review of Supply Chain:

Businesses with goods exported to the US market must review, analyze, and re-evaluate their supply chain. From there, develop an adjustment plan to ensure that their goods are not considered transit goods and are subject to high reciprocal taxes. Contact foreign suppliers and logistics partners to determine the status of shipments that are being and are about to be transported so that plans can be adjusted early. In addition, businesses should also plan for the worst-case scenario when the US considers them transit goods and imposes high taxes, so that they are always proactive in responding and minimizing damage.

2. Apply the "Two-State" Strategy for Logistics Operations:

For the North American market: Optimize costs but manage operational risks. Take advantage of the low-price environment to close good contracts. However, the focus must be on managing the risks of disruption at the origin by working closely with logistics partners and developing contingency plans.

For the European market: Act now to get ahead of the wave. This may be the last chance to book September cargo before the massive booking wave can push freight rates and shortages to new heights in late August.

3. Navigating the New Trading Playground:

Reassess your supply map: Businesses with global supply chains need to reassess their supply map based on the new bilateral tariffs.

Prioritize transparency: In an environment where anti-avoidance measures are increasingly stringent, having a transparent supply chain and excellent origin documentation is a competitive advantage and an important safeguard.

4. Building "Defensive" Capabilities for the Future:

Phaata believes that resilience is now extremely important. Successful businesses in the new era will be those that build a flexible supply chain through diversification (both suppliers and logistics options), strategic partnerships, and real-time information visibility.

Regularly follow articles on Phaata.com or Phaata fanpage to quickly update market developments.

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Source: Phaata -  Vietnam's First International Logistics Marketplace

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