Asia-Europe Shipping Costs Surpass U.S. West Coast Routes for the First Time in 2025

For the first time in 2025, shipping a 40-foot container from Asia to North Europe has become more expensive than to the U.S. West Coast - a significant signal of shifting dynamics in global logistics. This reversal follows weeks of diverging freight trends on the world’s two major east-west trade corridors.

Asia–U.S. Freight Rates Plummet Across All Indices

The Asia–U.S. trade lane is witnessing sharp and sustained rate declines:

• Drewry’s World Container Index (WCI): Shanghai–Los Angeles fell 15% week-over-week to $3,180.

• Xeneta XSI: Down 16% to $2,677.

• Freightos Baltic Index (FBX): Dropped a steep 39% to $3,388.

• Shanghai Containerised Freight Index (SCFI): Reported the sharpest decline of 19%, ending at $2,089.

Similarly, rates on the Shanghai–New York route declined:

• WCI: –11% to $5,070

• FBX: –15% to $6,116

• SCFI: –13% to $4,124

These consistent declines point to softening demand and overcapacity in the transpacific market.

Asia–Europe Rates Surge Despite Global Volatility

In contrast, rates on the Asia–North Europe route are on the rise:

• WCI: Up 8% to $3,468, overtaking the Shanghai–Los Angeles route for the first time since December 2024.

• XSI: Gained 17% to $3,354, continuing a four-week upward streak.

Industry experts credit these increases to tighter capacity control. According to Jérôme de Ricqlès of Upply, shipping lines have deployed blank sailings and shifted vessels away from Asia–Europe, tightening available space and maintaining strong demand-to-capacity ratios. As a result, Freight All Kinds (FAK) rates surged to $3,900–$4,100 per 40ft container as of July 1.

“We’re not seeing explosive growth - it’s more about stability,” said de Ricqlès. “Asia–Europe is holding its ground, unlike transpacific lanes where demand was overestimated.”

Caution Flags from the Mediterranean and Rate Volatility

Despite optimism, cracks are emerging. A July 1 rate increase on the Asia–Mediterranean route failed to gain traction:

• WCI (Shanghai–Genoa): Fell 9% to $3,751

• FBX: Declined 5% to $4,223

• China–North Europe FBX: Also dropped 4% to $2,969

These figures indicate that while Northern Europe rates are rising, the momentum may be fragile and short-lived.

Transatlantic Market Shows Flickers of Recovery

Amid the broader downtrend, transatlantic routes are showing signs of stabilization:

• WCI (Rotterdam–New York): Rose 7% to $2,119

• CMA CGM introduced a $800 peak season surcharge per 40ft reefer container from Northern Europe to the U.S. East/Gulf Coasts and Mexico, effective July 1.

These moves suggest that carriers are testing pricing power on niche routes where demand remains resilient.

Expert Commentary from Worldcraft Logistics

At Worldcraft Logistics, we recognize this shift as a wake-up call for shippers and freight forwarders. While the Asia–Europe trade lane appears more stable, it is largely driven by deliberate capacity control - not organic demand growth. Carriers are tactically adjusting vessel deployment to create favorable rate conditions. However, the uneven success of rate hikes in the Mediterranean and the ongoing slump in transpacific trades highlight that volatility remains the norm.

For businesses shipping between Asia, Europe, and the Americas, agility is more crucial than ever. Strategic planning, multi-route flexibility, and active carrier negotiations are key to mitigating cost fluctuations in H2 2025.

*This article has been rewritten and editorially adapted to suit the audience of Worldcraft Logistics. Original data sources include WCI, FBX, XSI, SCFI, and statements by industry analysts.