The latest freight market analysis from the Ningbo Shipping Exchange for the week ending 25 July 2025 shows a mixed performance across key tradelanes. While rates from Ningbo to Northern Europe held relatively firm with a slight 0.35% increase, routes to the Mediterranean and Middle East experienced notable declines. Particularly, spot rates to the East Mediterranean fell by 7.71%, reflecting reduced demand and potential oversupply, while West Mediterranean lanes dropped by over 3%. The most dramatic change occurred on the Ningbo to Middle East route, where rates plummeted by more than 20% compared to the previous week, suggesting a significant imbalance between vessel availability and cargo movement.
These changes reflect a broader trend of volatility in global container shipping. The composite freight index remains under pressure, tracking demand fluctuations and seasonal adjustments. Shippers and carriers alike are adjusting to shifting trade patterns, especially with the continued instability in Red Sea routing and excess capacity on several routes.
Global Indices Reflect Downward Momentum
Global shipping indices further underscore the cooling in freight markets. On 25 July, the overall containerised freight index dropped by 3.3%, settling at 1,592.6 points. This suggests weaker global freight pricing, consistent with the softness observed in routes from Chinese ports such as Ningbo. Meanwhile, the Baltic Dry Index, which tracks bulk cargo vessels rather than container traffic, showed a slight dip to 2,257 points—only a 0.04% decrease—but still stands 45% higher than a month ago. This divergence highlights the contrast between dry bulk strength and container freight softening.
The slight rise in the Europe-bound rates from Ningbo stands out as a rare positive indicator in an otherwise cooling market. This marginal uptick is likely due to relatively stable demand and reduced vessel capacity amid schedule adjustments by major carriers. However, the Mediterranean market continues to struggle, with rates on both the West and East Med routes declining in response to weaker summer cargo flows and ongoing congestion at transshipment hubs.
Carrier Strategies and Market Outlook
Shipping lines are increasingly redeploying capacity and modifying schedules in response to falling rates and shifting cargo patterns. The sharp decline in Middle East-bound freight rates may lead carriers to reconsider service frequency or vessel size on this corridor. Analysts expect rates to remain under pressure in the short term, particularly if new capacity continues to outpace recovery in demand.
Looking forward, there may be further rate stabilisation toward the end of Q3, especially if inventory restocking or holiday season demand begins to support volumes. For now, the market remains in a wait-and-watch mode as carriers monitor profitability on underperforming routes and adjust accordingly.
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Source: Baltic Exchange
