Shipping & Freight Cost Increases, Current Shipping Issues, and Shipping Container Shortage [2025]

New Tariffs Update

Over the weekend, President Trump announced steep tariffs on goods from Canada, Mexico, and China, citing illegal fentanyl and immigration as national emergencies. He imposed a 25% tariff on all Canadian and Mexican imports and a 10% increase on Chinese goods, also suspending the de minimis exemptions for these countries.

However, by Monday, Trump paused the North American tariffs for a month after Canada and Mexico promised stricter border controls. This also halted their planned retaliation, though the tariffs on China remain.

The sudden moves disrupted markets and raised fears of higher prices, slower growth, and trade uncertainty. Trump’s Commerce Secretary nominee, Howard Lutnick, suggested these were “action-oriented” tariffs, with a broader 60% tariff on Chinese goods possibly coming later this year.

China has responded with its own tariffs and an anti-trust probe into Google, while also signaling it may restart trade talks. Meanwhile, businesses may rush to import goods before any new tariffs take effect, potentially keeping U.S. shipping costs high in the coming months.

For more on the new Trump trade tariffs, click here.

Red Sea Shipping Disruption News & Updates

The global shipping industry remains significantly impacted by the Red Sea Crisis, which began in late 2023 and has persisted throughout the year.

Houthi attacks on vessels have forced rerouting around the Cape of Good Hope, which has led to longer transit times on Asia-Europe and Asia-Mediterranean lanes, and higher prices across the board: as we reach the end of 2024, ocean rates are double pre-crisis levels.

These disruptions also contributed to early peak seasons on both transpacific and Asia-Europe lanes.

2025 Red Sea Outlook

With the first phase of the Israel-Gaza ceasefire in effect, the Houthis have stated they will stop attacking vessels unrelated to Israel. However, carriers have not yet resumed routes through the Suez Canal, as they are waiting to see if the ceasefire holds and the attacks stop.

Hopefully Red Sea transit can soon resume, which would likely cause an initial period of disruption as schedules adjust, but eventual stabilization could lead to rates finally lowering.

For more about the Houthi Attacks in the Red Sea and Suez Canal disruptions, click here.

Ocean Freight Market Updates, Shipping Costs, and Delays

Global shipping rates fluctuated in January, driven by pre-Lunar New Year demand, trade policy uncertainty, and continued disruptions in the Red Sea. Prices initially surged but eased toward the end of the month as the seasonal rush subsided.

Transpacific routes saw typical seasonal patterns, with rates rising early in the month before dipping after the holiday. However, the anticipated new U.S. tariffs led to a surge in shipments as importers rushed to move goods before any increases took effect. This frontloading could keep demand unusually high in the coming months but may result in a downturn once new tariffs are introduced.

In Europe and the Mediterranean, longer routes due to Red Sea diversions pushed rates up earlier than usual, with prices peaking before the Lunar New Year. Since many shipments moved ahead of schedule, a post-holiday rebound may be limited. Despite a brief ceasefire in the region, carriers have not resumed using the Suez Canal, and any eventual return could cause short-term congestion at ports as vessel schedules readjust.

One major disruption was avoided when U.S. East and Gulf Coast ports reached a labor agreement, preventing a strike that could have caused delays and price spikes. Without this disruption, transatlantic rates remained stable.

Looking ahead, shipping rates may stay elevated as businesses continue frontloading ahead of potential tariff increases. However, once tariffs are in place, demand could drop, leading to lower rates. The Red Sea crisis remains a wildcard, as a return to normal routes could create temporary congestion but ultimately help ease supply chain pressures over time.

Ocean rates – Freightos Baltic Index:

• Asia-US West Coast prices rose 3% to $5,078/FEU.   
• Asia-US East Coast prices (FBX03 Weekly) rose 1% to $6,718/FEU. .
• Asia-N. Europe prices (FBX11 Weekly) decreased 11% to $3,667/FEU.
• Asia-Mediterranean prices (FBX13 Weekly) were level at $5,069/FEU.

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Ocean Freight Market Forecast for 2025

There hasn’t been a dull moment in freight over the past few years and 2025 promises its own set of changes and challenges. Here are some key factors to look out for:

New or Increased Tariffs on US Imports

President-elect Trump has announced new tariffs for Canada, Mexico, and China, while alluding to future tariffs on EU imports. Many importers and exporters have been trying to ship early to avoid these higher rates, which has caused high freight volumes. Such frontloading could also impact seasonality trends as peaks may come earlier than usual. Canceling de minimis will also affect air freight rates.

Continued Red Sea Diversions

Carriers are still avoiding the Suez Canal, causing costly and lengthy freight diversions. Once the crisis ends, it will take some time for the industry to readjust.

Carrier Alliance Reshuffling

Some of the largest carriers will be reshuffling alliances starting in January with the ending of the 2M Alliance between MSC and Maersk, and the formation in February of the Gemini Cooperation between Maersk and Hapag-Lloyd. These changes could cause disruptions and extra fees at first, but could eventually lower rates due to increased competition.

These are recent container freight rates according to the Freightos Baltic Index:

Air Freight Market Update, Delays, Cost Increases, and Forecast for 2025

According to Freightos Air Index, rates on transpacific and transatlantic air cargo have begun decreasing as we near the end of peak season. However, China – Europe prices were still elevated last week at almost $5.00/kg.

Some experts expect demand and rates to stay high into the new year as shippers try to import goods into the US ahead of potential tariff changes.

Additionally, potential changes to de minimis rules could significantly impact air freight, especially e-commerce and fast fashion, as companies may find their goods face new fees as well as costly and time-consuming customs filings.

Air rates – Freightos Air Index

• China – N. America weekly prices decreased 9% to $5.09/kg.
• China – N. Europe weekly prices fell 1% to $3.24/kg. 
• N. Europe – N. America weekly prices increased 5% to $2.35/kg..

Amazon Shipping Costs in 2025

Keeping up with door-to-door pricing for Amazon FBA shipping can be a hassle. With data from thousands of weekly pricing points from freight forwarders, we’ve developed a weekly index of freight prices including for Less than Container Load (LCL), Full Container Load (FCL), and air cargo, from major export cities in southeast Asia to the most popular Amazon fulfillment centers in the US.

Want to know what the rates are instantly? Check out Freightos.com’s FBAX, the Amazon FBA freight index.

With data from thousands of weekly pricing points from freight forwarders, we’ve developed a weekly index of freight prices including for Less than Container Load (LCL), Full Container Load (FCL), and air cargo, from major export cities in southeast Asia to the most popular Amazon fulfillment centers in the US.

Read up on how Amazon sellers can deal with rapidly changing consumer demands as well as inventory challenges HERE.

When Will Shipping Costs Go Down?

In the current situation, many importers and exporters are wondering when they can expect freight rates and shipping prices to level off. The answer? Probably not yet.

But, despite potential delays and volatile freight shipping costs, there are a few steps importers can take right now:

How to navigate the current freight market:

• Compare at least a few quotes and modes to make sure you are getting the best cost and most efficient service possible.
• Buffer your freight budget and transit time for changes. Costs due to unforeseen delays or limited capacity can arise, so be prepared.
• Explore warehousing options to mitigate the effects of lowered demand and business restrictions in the US.
• Pay attention to the profitability of your goods and consider if a pivot could be worthwhile. Additionally, remember to factor in freight costs when assessing profitability.

How small or midsize importers can plan for operational success on Freightos.com:

• Understand that delays and extra charges may arise. Freight forwarders are trying their best to move goods on schedule without additional fees, but in this unstable period, delays and additional charges can occur out of forwarders’ control.
• Consider which shipping mode is best for you right now. Ocean freight is typically far cheaper but has a significant lead time. If your transit time demands it, ship by air and you’ll have confidence in the transit times.
• Book early if you can. As soon as your goods are ready, book your shipment to get goods moving as quickly as possible.
• Communicate regularly with your freight forwarder. This is more important than ever – staying in touch means you’ll have a better handle on your transit time and stay on top of any changes that may arise.
• Make sure that you have the manpower to accept your goods upon arrival. This will minimize delays.

How to stay informed: 

• Check out our daily FBX ocean rates index to help you stay on top of freight rates in 2025.
• Keep up to date on the industry with our weekly freight market update.
• Check out our predictions for freight market trends in 2025.

As always, we at Freightos.com are here to help. Please reach out if you have any questions or concerns.