Market Report – June 2025

Inflation is easing in the Euro Area but remains stubborn in the UK. Consumer demand is softening, while trade flows are being reshaped by geopolitical tensions, tariffs, and shifting capacity dynamics across modes.

PSP Worldwide Logistics continues to work closely with customers to apply agile, multimodal strategies that help prepare and insulate them from further rate and schedule volatility as we enter the second half of the year.

Ocean Freight
Ocean freight markets are sharply divided. Transpacific routes have tipped into oversupply following the US–China tariff pause, with Far East–US West Coast rates down 51% in six weeks and East Coast rates sliding 27%. Carriers are blanking sailings to stabilise, but capacity remains mismatched.

In contrast, Asia–Europe trades are tightening. Shanghai–North Europe rates surged 18% in early July, as vessel diversions and alliance reshuffles squeezed space. European ports, particularly Rotterdam and Hamburg, continue to face congestion, and equipment repositioning costs are up 40%+ versus pre-pandemic. Red Sea reroutes and rising bunker prices (~10% MoM) are adding further cost layers.

Shanghai–North Europe rates +18% in early July
Far East–US West Coast spot rates -51% over six weeks
Equipment repositioning costs +40% vs. pre-pandemic
Bunker fuel prices rising ~10% month-on-month

Air Freight
Air cargo is split along regional lines. Asia–US routes are booming, with Vietnam–US rates up 147% YoY, China–US up 38%, and Singapore–US more than doubling, driven by eCommerce and tariff front-loading. Asia–Europe flows are also strong, supporting fashion and retail shipments, while Europe–North America lanes have softened slightly.

Load factors remain high — 80–90% — sustaining premium spot rates despite year-on-year drops in jet fuel prices. Freighter redeployments are favouring intra-Asia and Latin America, while OEM delays constrain capacity expansion.

Shippers reliant on spot uplift should expect volatility to persist into Q3. PSP’s capacity agreements and proactive routing strategies help clients mitigate exposure and maintain delivery performance in this tight market.

London Heathrow outbound rates +25% mid-month
Global tonnage +11% YoY in early July
Load factors 80–90% sustaining spot premiums
China–US rates +38% YoY; Vietnam–US +147%

Road Freight
European road freight demand remains patchy. Germany’s recovery has lifted haulage volumes, but the TEG Index slipped 1.25% in June, reflecting a 13% drop in haulage demand. Articulated vehicle availability fell 10.9%, driving price gains despite a ~9% YoY fall in diesel prices. Labour shortages, now at 426,000 vacancies, remain a critical constraint across the continent.

Manufacturers and retailers are increasingly blending contract and spot solutions to manage stability and flexibility, but structural pressures on capacity, cost, and lead times persist. PSP’s secured haulage capacity and advanced scheduling tools help clients avoid delays and control costs in this fragile landscape.

TEG Index -1.25% in June; haulage demand -13%
Articulated vehicle availability down 10.9%
Diesel prices -9% YoY, but wage pressures rising
426,000 driver vacancies across Europe

Whether it’s securing ocean space, overcoming air capacity crunches, or locking in reliable haulage, PSP delivers the expertise, capacity, and flexibility you need.

Contact Colin Redman today at colin@psaplon.com and let us optimise your supply chain across sea, air, and road.