International Shipping and Logistics Market Update - Week 34/2025 | Phaata

International shipping and logistics market update - Week 34/2025

Table of Contents

1. World Container Index Week 34/2025

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 34/2025

The Drewry WCI Index continued to decline for the tenth consecutive week, falling another 4% to $2,250/FEU in Week 34/2025 (August 18 to August 24, 2025).

Drewry's World Container Index Week 34/2025 (Photo: Phaata)

2. Asia-North America Ocean Freight Rates

The Asia-North America container shipping market in Week 34 (August 18 to August 24, 2025) continued to be a clear "buyer's market". The supply-demand fundamentals have not changed significantly: demand remains flat and capacity remains surplus. In this context, the announcement of the General Rate Increase (GRI) for September 1 by shipping lines should be seen as a strategic “test” to establish a floor price and prevent further declines.

Supply and demand:

- On the demand side: Flat demand, no surprises

Demand in August continued to be flat. With the extension of the US-China tariff agreement, no breakthroughs are expected in the outlook for September.

Data from the Port of Los Angeles released last week confirmed that this year’s peak season came earlier in Q2 due to a wave of tariff-evading imports, explaining the current “quiet” market.

Trade flows continue to show a clear shift, with throughput from Southeast Asian ports still higher than China, confirming a structural trend.

- On the Supply Side: Persistent Overcapacity

Operating capacity remains at 70-80% of the standard level. Despite some cuts, the market is still in a state of overcapacity relative to actual demand. Vessel slots are generally available.

Operations

Tropical storm Co-may has caused 2-3 days of delays at Chinese ports. The impact of the storm goes beyond the initial delays. In response, carriers have implemented schedule recovery programs, often including unplanned cancellations to catch up with overall schedules. This will result in a rush of vessels arriving at subsequent ports, causing a cascade of impacts and chain congestion to other important hubs such as Busan (South Korea).

On the issue of "China-based vessels": Carriers say the deployment of these vessels has been or is being completed, and the good news is that there have been no announcements of any related surcharges applied to cargo shipped to the US.

Container Situation

The overall situation has improved slightly. However, divergence remains: shortages remain a major concern for carriers such as CMA and HMM, while other carriers are in better shape.

Freight Rates: 

Ocean Freight rates from Asia to the West Coast of North America in week 34/2025 continued to decrease by 2.79% compared to the previous week, to $1,810/FEU. This is down 19.81% compared to the previous month, according to Xeneta data.

With market demand weakening, shipping lines have completely removed the Peak Season Surcharge (PSS) for August.

Shipping lines have announced the General Rate Increase (GRI) for September 1. In the context of oversupply, this move shows that shipping lines are trying to establish a new floor price and prevent further declines, rather than really expecting a sharp increase.

Phaata forecasts that demand for September will not be sudden, so the possibility of the GRI being fully applied is not high, but it can help prevent further declines in freight rates.

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

Asia-North America Freight Rates | Week 34/2025 (Photo: Phaata.com)

US Tariff Updates:

Week 34 continued to see the tightening of US trade policy. The focus shifted from announcing new threats to making existing tariffs more complex and far-reaching. For businesses, this means increased compliance costs and the need to act urgently ahead of important deadlines that are looming in just a few days.

1- Full Expansion of Steel and Aluminum Tariffs (Effective August 18)

This was the most recent and far-reaching development of the week.

The Trump administration added 407 new HTS codes to the list of “derivative” products subject to Section 232 tariffs.

This move significantly expanded the scope of Section 232 tariffs from focusing solely on raw materials to a range of finished goods. The sectors affected are diverse, including: consumer packaged goods, industrial and household products, transport and heavy industrial goods, chemicals and coatings, energy and infrastructure products.

Compliance Complexities:

- The 50% tariff (25% for the UK) is only levied on the value of the steel or aluminium content of the product.

- Notably, 124 HTS codes on the new list are flagged for both aluminium and steel. This means that importers are now required to declare which metal is present, even if the product contains only one of the two.

- Mandatory requirements: To ensure compliance, importers must now obtain highly detailed data from suppliers, including steel/aluminium weight, percentage of customs value, and country of smelting and casting.

2- Critical Timing with Two Big Deadlines: The “G” Hour Has Come

This week and early next week are critical with two big deadlines:

- India (Effective 27 August): An additional general tariff of 25% will come into effect this Wednesday. This will be added on top of the 25% reciprocal tariff already in effect, potentially creating an effective tariff rate of up to 50% on some goods.

- De Minimis (Effective 29 August): The de minimis exemption (duty exemption for low-value goods under $800) will end for all countries this Friday. This is the “end of an era” for cross-border e-commerce. All low-value shipments will now be subject to existing duties and taxes based on their country of origin, significantly increasing the cost and complexity of customs clearance.

3- The “New Normal” Is Maintained

China: The extension of the interim agreement to November 10 continues to provide a period of relative stability.

Reciprocal Tariffs: The country-specific tariffs that went into effect on August 7 remain in place.

Other threats (to semiconductors, pharmaceuticals) remain, indicating a broad and aggressive trade agenda.

3. Asia-Europe Ocean Freight Rates

The Asia-North Europe market in Week 34 (August 18-24, 2025) has shown clear signs: the summer peak season has ended and the market is entering a period of downward adjustment. Demand has cooled significantly, forcing shipping lines to proactively cut freight rates to stimulate demand. However, a new challenge has emerged as the massive volume of cargo transported in previous months is now arriving at ports, causing a new wave of congestion at European ports.

On supply and demand: 

- On the demand side: Demand cools significantly

As the traditional peak season (July-August) is coming to an end, the growth rate of output is slowing down and overall demand has cooled significantly. The largest wave of inventory replenishment for the festive season in Europe has passed. Bookings for the second half of August sailings are now moving more smoothly in terms of both slots and equipment availability.

- On the Supply Side: Shipping Lines Respond with Blank Sailings

In response to the weakening demand, lines have begun to implement capacity reduction measures. There have been five blank sailings recorded for the end of August (from Ocean Alliance and Premier Alliance) and a further three announced for September (from Premier Alliance).

This is a clear defensive move by the lines to prevent a price collapse as demand is not as strong as before.

Operations:

Although the pressure has eased, the consequences of the peak congestion period are still there. Ship delays are still persistent. The cause is a domino effect of previous problems: schedule slippage, Changes of Vessels (COVs), and delays of vessels returning from Europe.

Yard utilization levels in major ports are high, particularly alarming in Southampton (90-95%), and also very high in Rotterdam (75-85%) and Hamburg (75-80%). This situation risks delaying inland transport and reducing the efficiency of incoming vessels.

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: A Cycle of Declines Has Begun

Freight rates from Asia to Europe continued their decline for the third consecutive week in week 34/2025, falling 5.35% week-on-week to $2,952/FEU. This is down 13.35% month-on-month, according to Xeneta data. This is a strong quantitative indicator of a weakening market.

In response, major shipping lines have proactively reduced FAK rates (applicable to all cargoes) by 10-15% to stimulate demand and compete for market share.

Although the expected capacity for September remains high (over 300,000 TEU per week), if demand continues to weaken, freight rates are expected to decline further.

The period of freight rate reduction on the Asia-Europe route usually begins in late August, early September and lasts until China's Golden Week (early October). The current market is following this pattern.

The peak summer season on the Asia-Europe route has ended, and the market has entered a period of clear price adjustment. The balance of power is tilted towards exporters.

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

Asia-Europe Freight Rates | Week 34/2025 (Photo: Phaata.com)

4. North America - Asia Ocean Freight Rates

Freight rates from North America (West Coast) to Asia in week 34/2025 increased by 1.58% compared to the previous week, to 642 USD/FEU. This price increased by 0.78% compared to the previous month, according to Xeneta data.

North America (West Coast) - Asia freight rates | Week 34/2025 (Photo: Phaata.com)

5. Northern Europe - Asia Ocean Freight Rates

Northern Europe to Asia freight rates continued to decrease by 5.61% in week 34/2025, down to USD 202/FEU. This price decreased by 13.30% compared to the previous month, according to Xeneta data.

Container Freight rates from Northern Europe to Asia | Week 34/2025 (Photo: Phaata.com)

6. Conclusion and Recommendations from Phaata

International Logistics Market Week 34/2025 has presented a clear picture: the summer peak season has officially ended on both major trade lanes and the global market is in a general downward cycle. The divergence of previous weeks has eased, replaced by a general downward trend. However, amid favorable costs, risks have shifted and focused on two main areas: operational complexity and impending trade policy risks.

Asia-North America: Continues to consolidate its "buyer's market" position with deep freight rates due to excess capacity. Data from the Port of Los Angeles confirms that the peak season has come early, leaving a large demand gap. The excess capacity is pushing freight rates further down, with rates to the West Coast falling below $1,900/FEU.

Asia-Europe: Has officially entered a downward cycle in accordance with the market cycle. Shipping lines proactively cut freight rates to stimulate demand.

Recommendations from Phaata

This relatively peaceful period is a golden time to act strategically, not to rest.

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

Businesses with goods exported to the US market need to review, analyze, and re-evaluate their supply chains. 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 a Market-by-Market Adaptive Strategy for Logistics Operations:

For the North American market: Optimize costs but focus on reliability. Continue to take advantage of the low-cost environment to negotiate. At the same time, focus on managing origin risks. Work closely with partners to get updates on storms and congestion at Southeast Asian transit ports.

For the European market: Negotiate against a backdrop of declining prices. The market is softening. This is a good time to start negotiating better rates for late Q3 and early Q4 shipments. Focus on managing destination risks. Have flexible plans for customs clearance and inland transportation to deal with congestion at key ports such as Southampton and Rotterdam.

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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