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

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

While only time will tell whether Houthi attacks continue, Red Sea diversions are expected to persist for now, which means ocean rates will remain elevated.

In addition, seasonal demand fluctuations will remain skewed, with early peaks and prolonged periods of high rates.

Hopefully the crisis will end soon, 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

Transpacific ocean rates increased throughout December, with prices toward the end of the month 15% higher than those at the beginning of the month.

Not only have rates been high, but vessels have also been full, both of which are probably the result of importers and exporters shipping early to avoid President-elect Trump’s promised tariff increases.

Despite these high volumes, US ports are running smoothly and report being prepared for even greater freight volumes as we get closer to Lunar New Year.

Transatlantic rates have largely been steady since October, but will likely increase in January, since some carriers have announced extra surcharges in anticipation of an ILA port worker strike. In January and February some major carrier alliances will reshuffle, which will likely also cause some disruptions and price increases.

Asia – Europe and Mediterranean container rates decreased in December despite bad weather causing congestion at some European ports.

Overall, ocean rates are at least double what they were a year ago and the biggest contributing factor is the Red Sea Crisis, which continues despite military attempts by Israel and the US to restore security.

Ocean rates – Freightos Baltic Index:

• Asia-US West Coast prices (FBX01 Weekly) rose 4% to $4,452/FEU.   
• Asia-US East Coast prices (FBX03 Weekly) rose 2% to $5,932/FEU.
• Asia-N. Europe prices (FBX11 Weekly) decreased 2% to $4,971/FEU.
• Asia-Mediterranean prices (FBX13 Weekly) decreased 1% to $5,721/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 promised to increase tariffs or impose new ones on imports from a variety of countries. While these changes are not definite and will likely take time to implement, many importers and exporters are already trying to ship early to avoid them, which is causing higher freight volumes much earlier in the year relative to Lunar New Year. Such frontloading could also impact seasonality trends as peaks may come earlier than usual.

Continued Red Sea Diversions

As long as Houthi attacks continue in the Suez Canal, so will costly and lengthy freight diversions. Once the crisis ends, it will take some time for the industry to readjust.

Potential Port Worker Strikes

The industry is waiting to see whether an ILA port worker strike takes effect in January. If it does, transpacific and transatlantic shippers could face distruption and rate spikes.

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 19% to $5.86/kg.
• China – N. Europe weekly prices increased 40% to $4.92/kg. 
• N. Europe – N. America weekly prices decreased 9% to $2.75/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.