International Shipping and Logistics Market Update - Week 35/2025 | Phaata

International shipping and logistics market update - Week 35/2025

Table of Contents

1. World Container Index Week 35/2025

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 35/2025

The Drewry WCI continued to decline for the 11th consecutive week, falling another 6% to $2,119/FEU in week 35/2025 (August 24 to August 31, 2025).

Drewry's World Container Index Week 35/2025 (Photo: Phaata)

2. Asia-North America Ocean Freight Rates

The Asia-North America container shipping market in Week 35 (August 25-31, 2025) continues to operate in a favorable environment for importers, with flat demand and ample capacity. The build-up to China's Golden Week, which is usually very active, has been quiet this year. The most notable development has been the efforts of shipping lines to increase rates in September. However, with the fundamentals of the market unchanged, the success of these rate increases remains a big question mark.

Supply and demand:

- On the demand side: No sudden change before Golden Week

There has been no sudden increase in market demand as usual before major holidays in China.

Reports suggest that the rush to ship early in Q2 to avoid tariffs could not only create a quiet summer, but also lead to a lackluster fall. Large inventories in the US have dampened demand for new orders.

New risks for the furniture industry: A new risk factor that could impact future production is President Trump’s announcement of an investigation into imported furniture, which is expected to be concluded in the next few months.

- On the Supply Side: Persistent Overcapacity

September’s capacity utilization remained high, at 80%-90% of the standard level.

Demand has yet to catch up with capacity, so there is still room on board.

Container Operations & Equipment Situation

The overall situation has improved slightly. However, the divide 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 continued to decline by 2.68% week-on-week in week 35/2025 to $1,777/FEU. This is down 20.24% month-on-month, according to Xeneta data.

Background: Peak Season Surcharges (PSS) have been removed until mid-September, creating a relatively low-cost environment.

September GRI and PSS - Efforts to "Make Waves":

- Shipping lines have announced General Rate Increases (GRIs) for September 1, with a proposed increase of USD 800-900 compared to August rates.

- At the same time, some shipping lines have also announced a new PSS for September 15.

- In the context of oversupply and weak demand, the possibility of these increases being fully applied is very uncertain. This is considered a "psychological survey" by shipping lines to prevent further price declines and establish a new floor price for the fall, rather than really expecting a price boom.

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

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

Asia-North America Freight Rates | Week 35/2025 (Photo: Phaata.com)

US Tariff Updates:

Week 35 saw a significant escalation and expansion in US trade policy. No longer focused solely on general reciprocal tariffs, Washington is now targeting highly strategic sectors such as digital technology and critical supply chains. At the same time, two of the biggest changes announced earlier – the tariff hike on India and the end of the de minimis era – have officially taken effect, creating a challenging new business reality.

1- The New “Front”: Tariffs Target the Digital Sector

This is a new and extremely important development, indicating a new direction in trade policy.

On August 25, President Trump said he plans to impose “substantial additional tariffs” on countries that do not roll back digital services taxes and regulations that the US says target its tech companies. The dual sanctions also include restrictions on US chip exports to those countries.

This is a significant escalation, showing that the US is willing to use trade weapons to protect the interests of US tech giants. This puts even close allies with trade agreements, such as the UK (which imposes a digital services tax) and the EU (with laws like the DSA/DMA), in an awkward position.

2- Pressure on Strategic Supply Chains

The US administration is increasingly using trade tools to address economic and industrial security issues.

China and Rare Earth Magnets: President Trump hinted at the possibility of tariffs of up to 200% if China does not increase rare earth magnet exports to the US. This is a move to address the US’ strategic dependence on China for 90% of a critical component.

Furniture and Wind Energy: New tariff investigations have been announced for the furniture industry (concluded in 50 days) and the wind turbine industry (Section 232 investigation). These are the first steps, which could lead to new tariffs in these sectors.

3- Important Agreements and Deadlines Update

US-EU Framework Agreement: Details of the agreement have been released, revealing a complex structure: EU goods will be subject to higher tariffs between Most Favored Nation (MFN) or 15%. The US’s reduction of auto tariffs for the EU is conditional, occurring only after the EU reduces tariffs on US goods.

The “G” Has Come: Two major changes have officially taken effect:

- India: As of August 27, an additional general tariff of 25% took effect, pushing the effective total tariff rate on some items up to 50%.

- De Minimis: As of August 29, de minimis exemptions have ended for all countries. This is the end of an era. All low-value commercial shipments into the US will now be subject to tariffs, fundamentally changing the cost model of the e-commerce industry.

US trade policy has evolved from broad-based tariffs to a multi-layered, highly targeted strategy aimed at achieving specific industrial and geopolitical objectives. The trade playing field is more complex and fragmented than ever.

3. Asia-Europe Ocean Freight Rates

The Asia-North Europe market in Week 35 (August 25-August 31, 2025) is in a dramatic transition period. Although the freight rate indices continue to decline, reflecting a market that has passed its peak, this is not a free fall. We are witnessing a "tug of war" between factors that push prices down (cooling demand) and factors that slow down the decline (cancellations, destination port congestion). The period before Golden Week this year will be a mind game for both shippers and carriers.

On supply and demand: 

- On the demand side: Carriers proactively regulate to maintain prices

Shipping lines have announced blank sailings for September, which are expected to reduce weekly capacity by about 10% in the first half of the month. This is a clear strategic move to tighten supply to support freight rates.

The good news is that the situation of loading ports and equipment has improved significantly and returned to normal levels, making loading and delivery to ports smoother than in July.

- On the Supply Side: Stable demand but time pressure

Cargo volumes remain relatively stable; the decline after the peak in July is not too large, which helps to restrain the sharp decline in freight rates.

Pressure before Golden Week: Demand for shipping goods ahead of the long holiday in China (early October) is increasing.

Operations:

Although the issue at the origin port has been resolved, congestion at the destination ports in Europe remains a major issue. This will continue to lengthen overall transit times in the coming weeks and pose risks to delivery plans. 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. However, shortages remain a major problem 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 fourth consecutive week in week 35/2025, falling 7.76% week-on-week to $2,757/FEU. This is down 18.91% month-on-month, according to Xeneta data. This is a strong quantitative indicator of a declining 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 fall further.

Factors causing downward pressure on prices: An important factor that is not widely noticed is the fact that factories in China often close early before Golden Week. This will put pressure on shipping lines to fill their last sailings in September, potentially pushing freight rates down gradually.

Factors holding back the decline: Intentional cancellations by shipping lines and a relatively stable demand base will help slow the pace of price declines.

The period of price reductions on the Asia to Europe route usually starts 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 to 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 35/2025 (Photo: Phaata.com)

4. North America - Asia Ocean Freight Rates

Freight rates from North America (West Coast) to Asia continued to increase by 3.31% week-over-week to $655/FEU in week 35/2025. This is a 3.97% increase month-over-month, according to Xeneta data.

North America (West Coast) - Asia freight rates | Week 35/2025 (Photo: Phaata.com)

5. Northern Europe - Asia Ocean Freight Rates

Freight rates from Northern Europe to Asia continued to decline by 5.63% in week 35/2025 to $201/FEU. This is a 14.10% decrease compared to the previous month, according to Xeneta data.

Container Freight rates from Northern Europe to Asia | Week 35/2025 (Photo: Phaata.com)

6. Conclusion and Recommendations from Phaata

The international logistics market in Week 35/2025 has shown a clear picture of a simultaneous decline on major shipping routes and the international trade playground is entering a new complex phase. The differentiation of previous weeks has ended, giving way to a general downward trend on both the US and Europe routes, while strategic risks are increasing.

Asia-North America: Continuing to consolidate its position as a "buyer's market" 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 $1,800/FEU.

Asia-Europe: Has officially entered a price reduction cycle in accordance with the market cycle. Shipping lines have 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. Make the Most of the Pre-Golden Week Price Reduction Cycle:

With both the main routes to the US and Europe offering discounts, the bargaining power is with shippers. Work proactively with logistics partners to lock in the best rates for shipments in September, before the market may experience minor fluctuations before and after the Golden Week holidays.

2. Act Urgently on Policy Changes:

De Minimis: E-commerce businesses must ensure that they have implemented new operating and cost models. Work with logistics providers immediately to understand the customs clearance process and the duties that will apply to low-value goods.

Vertical Risks: Businesses in the furniture, renewable energy, and high-tech industries should closely monitor new US investigations and begin developing response scenarios.

3. Apply Market-Specific Adaptive Strategies to Logistics Operations:

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

For Europe: 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 risks at destination. Have flexible plans for customs clearance and inland transport to cope with congestion at major ports such as Southampton and Rotterdam.

4. Navigate the New Trade Playground:

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

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

5. Build “Defensive” Capabilities for the Future:

Phaata believes that resilience is now more important than ever. 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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