Global Ocean Freight Rates Plunge Amid Trade Tensions and Overcapacity

Shipping rates drop sharply in early 2025 as overcapacity, seasonal trends, and U.S. trade policies reshape global shipping dynamics.

The Drewry World Container Index shows a 33% drop in ocean freight rates across all trade lanes since January, with Asia-to-Europe routes seeing the steepest declines.
Spot rates for containers from Shanghai to Los Angeles and New York fell 11% and 10%, respectively, reflecting reduced demand after front-loading of U.S. imports ended.
Mediterranean Shipping Company (MSC) has reshuffled its fleet and scrapped its Mustang service in response to falling demand and declining rates on trans-Pacific routes.
U.S. President Donald Trump's new tariffs and proposed fees on Chinese-built vessels are adding uncertainty, potentially disrupting global trade and increasing costs for shippers.
A potential reopening of the Red Sea route, following eased Middle East tensions, could further lower rates by redirecting traffic back through the Suez Canal.