International Shipping and Logistics Market Update - Week 20/2025 | Phaata

International shipping and logistics market update - Week 20/2025

Table of Contents

1. World Container Index Week 20/2025

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 20/2025

Drewry's Global Composite Container Freight Rate Index in Week 20/2025 reversed sharply to increase by 8% to USD 2,233/FEU compared to the previous week. This freight rate index is 57% higher than the pre-pandemic average of 2019 ($ 1,420).

Drewry's World Container Index Week 20/2025 (Photo: Phaata)

2. Asia-North America Ocean Freight Rates

Ocean freight rates from Asia to the West Coast of North America in Week 20/2025 reversed to increase by 3.37% compared to the previous week, to USD 2,615/FEU. This rate is down 8.82% compared to the previous month, according to Xeneta data.

Strong demand from China due to the interim US-China trade deal, combined with existing backlogs and the timing of peak season preparations, clearly indicate that Asia to US volumes will increase significantly throughout the remainder of Q2.

Carriers are in the process of restoring capacity, with changes expected to begin in late May and further capacity increases in June. Week 20 capacity on the trade route is currently 20% below normal and down slightly from previous weeks. However, capacity is forecast to improve in Weeks 21 and 22: 16% and 10% below normal, respectively.

To address the immediate surge in demand, some carriers will be adding additional vessels to accommodate. However, current capacity availability on the trade route may not be sufficient to meet the expected surge in demand.

Following the interim trade deal between the US and China, the forecast for sailing cancellations is to fall again in week 22, with a projected cancellation rate of 13%. This is the lowest number of sailing cancellations since late March.

Container Equipment: Overall, the equipment situation remains adequate for now. Container shortages are not an immediate concern on this route, although the situation remains volatile and will need to be monitored.

Freight Rates: Spot rates are expected to increase, with a GRI of USD 3,000 announced for June 1. Driven by expectations of higher volumes, a Peak Season Surcharge (PSS) has been announced for long-term contracts, with some carriers planning to apply as early as mid-May and as late as June 1.

Regarding empty container equipment, overall supply is still assured for now. There are no significant concerns about shortages at this time.

Please regularly follow the articles on Phaata International Logsitcs Marketplace to update market developments quickly.

Asia-North America Freight Rates | Week 20/2025 (Photo: Phaata.com)

US Tariff Update:

The cooling of the US-China trade war, removing most tariffs, has immediately brought a breath of fresh air to the global economy amid concerns about the risk of recession. After negotiations in Switzerland on May 12, the US and China agreed to postpone part of the reciprocal tariffs for 90 days (effective from May 14 to August 11). Specifically, the US significantly reduced the total import tax on goods from China, from 145% to 30%. China also reduced its retaliatory tariffs on US goods to 10% from 125%. The period was designed to facilitate deeper trade negotiations toward a lasting solution to the current dispute. This is seen as a significant step back in bilateral trade tensions. In addition, the US also reduced tariffs on Chinese postal items worth $800 or less from 120% to 54%, while maintaining the option of paying a flat $100 fee instead. The increase in the flat fee to $200 that was scheduled to take effect on June 1 has been adjusted.

The latest on other reciprocal tariffs:

+ The 10% reciprocal tariff on the UK will remain in effect indefinitely, according to the trade deal reached last Thursday.

+ The 10% reciprocal tariff on all other U.S. trading partners remains in effect until July 9 at 12:01 a.m. ET. After that, country-specific reciprocal tariffs will apply.
 

3. Asia-Europe Ocean Freight Rates

Container rates from Asia to Northern Europe continued to decline by 5.71% week-on-week in the week of 20/2025, to USD 1,917/FEU. This is down 19.39% month-on-month, according to Xeneta data.

The oversupply situation continues; carriers will further cut capacity by cancelling sailings. Sea-Intelligence forecasts that ‌cancellations‌ in May on Asia-Europe could spike to 12-15%‌, exceeding the initial forecast of 8-10%.

According to Sea-Intelligence, hub ports in Northern Europe (including Rotterdam, Hamburg) are facing ‌5-7 days‌ of ‌docking delays‌ due to labor shortages and increased vessel concentration. This will impact vessel performance and turnaround times.

‌The three major alliances have not announced any additional sailing cancellations since Labor Day. Total weekly capacity on the route is expected to stabilize at 310,000 - 320,000 TEUs after Week 21.

The European market is expected to see a slight recovery as seasonal consumer demand picks up. European retailers continue to replenish their inventory for the peak season. However, Asia-Europe demand may be limited in the short term as manufacturers prioritize capacity for urgent US shipments following the tariff reduction. This will impact the ability to meet cargo demand in this market over the next 3 to 4 weeks.

In addition, as Asia-US volumes pick up again, capacity previously diverted to Europe may be reallocated to the trans-Pacific trades once again, easing the oversupply pressure on the North European trades.

This suggests that the tariff adjustments between China and the US will have a slowing effect on the decline in freight rates on the Asia-Europe trades by reducing excess capacity.

Please regularly follow the articles on Phaata International Logsitcs Marketplace to quickly update market developments.

Asia-Europe Freight Rates | Week 20/2025 (Photo: Phaata.com)

4. North America - Asia Ocean Freight Rates

North America (West Coast) to Asia freight rates in week 20/2025 reversed to increase by 4.64% to USD 631/FEU. This price increased by 2.60% compared to the previous month, according to Xeneta data.

North America (West Coast) - Asia freight rates | Week 20/2025 (Photo: Phaata.com)

5. Northern Europe - Asia Ocean Freight Rates

Northern Europe - Asia freight rates in week 20/2025 continued to increase slightly compared to the previous week, up 0.47%, to USD 213/FEU; This price is down 8.97% compared to the previous month, according to Xeneta data.

Container Freight rates from Northern Europe to Asia | Week 20/2025 (Photo: Phaata.com)

6. Conclusion and Market Reviews by Phaata

Week 20/2025 marks an important turning point, which can be said to be a positive "shock" for the container shipping market, especially on the Trans-Pacific route, which is almost entirely driven by trade policy factors.

The market is showing a clear differentiation: On one side, the Asia - North America route is booming again due to the effect of the temporary tariff agreement, and on the other side, the Asia - Europe route is still struggling with its own problems, although it may benefit indirectly.

The “temporary” nature of the US-China deal (90 days) will create a sense of urgency and volatility. Importers will try to make the most of this opportunity, while carriers will look to maximize profits. This could lead to a shortage of space and a short-term spike in freight rates on the US route.

Return of pricing power to carriers on the Trans-Pacific: The published GRI and PSS levels are clear evidence.

For shippers:

+ To the US: Be prepared for higher shipping costs and the possibility of difficulty finding space. Early and flexible planning is extremely important.

+ To Europe: Freight rates may continue to be more attractive, but keep a close eye on the supply situation as manufacturers may prioritize the US market. Schedule reliability remains an issue.

Outlook: The Trans-Pacific market is expected to be very active for at least the remainder of Q2. However, the big question is what will happen after the 90-day agreement ends or if there are new policy changes. Long-term stability remains a question mark.

In summary, the shipping market in Week 20/2025 has shifted from a gloomy state to a much more vibrant scenario due to political and commercial factors. This is a time that requires agility, quick adaptability and effective risk management from all stakeholders in the supply chain. Phaata International Logsitcs Marketplace recommends that import-export enterprises and logistics companies closely monitor market indicators and updated information to have flexible response strategies and appropriate adjustments.

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

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Source: Phaata.com

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