The freight market update July 2025 reveals a shipping landscape in transition.
Port operations in Australia are being disrupted by extreme weather, while major infrastructure projects aim to improve long-term efficiency.
In Asia, carriers are raising rates ahead of the peak season, while European ports deal with mounting congestion.
Rate volatility continues across US-bound lanes, and the SHIPS for America Act is signalling a major shift in US maritime strategy.
All signs point to a complex, fast-moving environment that will require freight teams to remain agile and informed as Q3 unfolds.
Global Overview
Sea Intelligence reported that global reliability improved to 65.8 per cent in May, the best performance since November 2023. Year-on-year, reliability rose 10 percentage points.
Drewry’s World Container Index dropped 5.7 per cent for the third week in a row, signalling continued weakness in demand. The recent rate spikes caused by short-term policy pauses appear to be waning.
It was also noted by Sea Intelligence that among carriers, Maersk led with 75.9 per cent reliability, followed by Hapag-Lloyd at 72.5 per cent. New alliance structures will be fully in place by July, providing better insight into long-term performance metrics.
Sea Freight – Australia
From 1 July 2025, biosecurity cost recovery fees were adjusted. Full import declarations for air freight rose from AUD46 to AUD48, and for sea freight from AUD66 to AUD68. Cargo documentation fees also increased from AUD39 to AUD40. These charges are all relative to every import shipment over AUD1000. Read the full update on fees and charges for biosecurity regulatory activities from the Australian Government Department of Agriculture, Fisheries and Forestry here.
Fremantle paused operations from the afternoon of 6 July to the morning of 7 July as extreme weather forced vessels offshore. DP World shut down activity during this window for safety. Sydney experienced a damaging “bomb cyclone” on 1 July, with winds up to 125km/h halting all terminal operations. Several vessels bypassed Sydney, intensifying delays for the week. In Brisbane, Patrick Fisherman Islands Terminal will fully shut down between 0700 and 1500hrs on 13 July. Melbourne’s empty container depots continue facing sporadic closures due to strong winds.
Adelaide’s Flinders Container Terminal is undergoing a $350 million infrastructure expansion to increase capacity. The DCN reported that this includes a 135-meter berth extension, new cranes, an expanded container depot, and automation trials designed to improve throughput and operational efficiency.
Sea Freight – Europe
Rates from Shanghai to Genoa dropped 9 per cent to $3,751 per 40ft container, while Shanghai to Rotterdam rose 8 per cent to $3,468. Carriers have kept July’s General Rate Increases (GRIs) in place due to high vessel utilisation. Weekly capacity increased by 11 per cent from June, with sharp fluctuations suggesting carriers are calibrating schedules ahead of the late July and August peak.
Congestion at Antwerp and Rotterdam is worsening due to high yard density, labour shortages, and ongoing construction. In Hamburg and Bremerhaven, yards are full and wait times have reached up to 3 days. Genoa continues to experience yard saturation, and Algeciras faces berthing delays. The Loadstar also reported that rail backlogs in Germany are compounding the issues, further slowing inland cargo flows.
Import volumes from Asia to Europe have consistently exceeded 2023 levels since March, supporting demand but straining already fragile port operations. The result is a rise in booking rollovers and regional equipment shortages.
Sea Freight – Asia
Cargo activity surged in the second half of July following fiscal year-end order releases and early peak season demand. In response, carriers are aggressively applying Peak Season Surcharges. MSC’s PSS is effective from 15 July, while others will implement their surcharges from 1 August. Most carriers are adding fees of USD 500 per TEU, with expectations that rates will exceed USD 1,300 mid-July and reach USD 1,600 by early August.
Shipping lines are prioritising profitability by delaying pricing decisions and gauging competitor actions. This strategic shift marks a departure from the caution seen in earlier months. MSC, for example, has removed large ships from the China–Australia route, replacing them with smaller vessels to limit supply. The June order backlog has spilled into July, creating space constraints and higher rates.
Other contributing factors include planned blank sailings and vessel realignment. These tactics have rebalanced supply and demand, fueling renewed congestion and delayed bookings as carriers capitalise on rising market pressure.
Sea Freight – USA & Canada
Spot rates to the US West Coast are softening and now sit below fixed contract levels. The Peak Season Surcharge was removed as of 1 July. Shanghai to Los Angeles fell 15 per cent to $3,180 per 40ft container. Shanghai to New York dropped 11 per cent to $5,070. Despite recent declines, both rates remain higher than in early May.
According to Drewry, demand remains soft, and excess capacity is driving rate reductions. Total capacity is holding between 84 and 91 per cent. Blank sailings are limited, and equipment availability is stable. The Port of New York and New Jersey continues to outperform, processing nearly 775,000 TEUs in May 2025 and up 6.5 per cent year-on-year.
Schedule reliability is steady, with no major volume surges expected in July. Carriers are taking a flexible approach, managing services week-to-week without significant structural cuts.
U.S. Tariffs – July 2025: Rising Costs and Strategic Shifts in Global Logistics
Tariff developments in July 2025 are having a pronounced effect on global supply chains. The United States has proposed a 20 per cent increase on general imports and up to 100 per cent on Chinese goods. These proposed hikes are encouraging shippers to frontload cargo, which is contributing to elevated demand and unstable rates across both ocean and airfreight markets. The anticipated elimination of the de minimis threshold for duty-free imports under $800 is also adding complexity for e-commerce providers, especially those sourcing from Asia-Pacific. As a result, many importers are shifting sourcing strategies toward Vietnam, Mexico, and other nearshore alternatives, pushing up demand for cross-border ground transportation.
The Section 301 tariff enforcement will directly impact ocean freight operations. Steamship lines could soon face new fees based on the number of U.S. ports they call at, and most are expected to pass these costs down the supply chain. To manage exposure, carriers may reduce the number of U.S. port calls, which could lead to more congestion at major gateways. This change risks longer dwell times, elevated costs, and new planning challenges for shippers. As this situation evolves, supply chain stakeholders should closely track regulatory updates and work with logistics partners to adjust sourcing and routing strategies accordingly.
USA Spotlight: SHIPS for America Act
The SHIPS for America Act, advancing in Congress, outlines a national maritime revival. The initiative aims to create a US-flagged commercial fleet of 250 ships by 2030 to restore independence in maritime trade. This would mandate that a growing portion of imports and exports be transported on American vessels.
New infrastructure investments are already underway, including at US shipyards, with support from both domestic and international carriers. The proposed Maritime Security Trust Fund would ensure sustainable funding outside traditional government budgets. Carriers will likely pass compliance costs onto shippers, making it critical for businesses to evaluate carrier strategies beyond just price. Read a full breakdown of The SHIPS for America Act at More Than Shipping.
Conclusion
The freight market update July 2025 highlights a volatile shipping environment shaped by weather, policy, and strategic capacity changes. Port shutdowns and surcharges are already impacting key trade lanes, while long-term shifts like the SHIPS Act are poised to reshape maritime priorities. As global conditions evolve and rates continue to shift, strong partnerships and proactive planning will be essential.
Reach out to TFG Global today to discuss your Q3 shipping strategy. With volatility on the rise and space tightening across trade lanes, securing capacity and locking in rates now will help keep your supply chain moving.
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