News / New year, new services, as intra-Asia rates strengthen

Intra-Asia rates continued to strengthen in the first two weeks of December, as capacity remained tight and shippers rushed-out goods for post-Christmas sales.

Drewry’s Intra-Asia Container Index shows rates went up 6% from the previous fortnight, averaging $709 per 40ft.

Ho Chi Minh City-Shanghai actually gained 63%, to $67 per 40ft, up around 12%, year-on-year; Jakarta-Shanghai was up 21%, to $51 per 40ft, although this was 70% lower year on year.

Rates might cool after Christmas, before firming again ahead of Chinese New Year on 17 February, according to Drewry.

The consultancy said it “expects intra-Asia freight rates to remain stable in the latter half of the month as Christmas demand fades, and then strengthen in January, due to tighter capacity during an extended peak season”.

Clarksons’ latest container shipping report stated that intra-Asia trade saw another month of firm growth, (+4% year on year) in November, while Asian exports to developing economies were again strong, with year-on-year growth at 11%.

Anticipating strong demand, Shanghai Jin Jiang Shipping (JJ Shipping), the intra-Asia liner unit of Shanghai International Port Group is launching a China-Thailand service on 8 January.

Marketed as CTJ (China-Thailand-Japan), the service deploys three 1,900 teu ships, calling Tokyo, Yokohama, Ningbo, Shekou, Shanghai, Laem Chabang, Bangkok. The first sailing will see the Mild Rose setting out from Tokyo.

JJ Shipping has been expanding into South-east Asia. In May, it extended its SSX (Saigon Shanghai Express) service, which connects Shimizu, Nagoya, Shanghai, and Ho Chi Minh City, to add a Haiphong call.

Meanwhile, with Vietnamese exports continuing to grow, CMA CGM’s intra-Asia arm, CNC Line, will reshuffle its Central China-Southern Vietnam offers next month, with a new CV7 service and the revision of its CV8 loop. CNC will provide the CV7 through co-loading on Maersk’s upcoming Central China-Southern Vietnam I68 service, which will start this week, offering a dedicated Ningbo-Ho Chi Minh City connection.

CNC will, then, remove Ningbo from its CV8 service, shortening the loop to a dedicated weekly shuttle between Shanghai and Ho Chi Minh City.

MB Shipbroker data shows that, over the first 10 months of this year, Vietnam’s containerised exports rose 14% year on year, exceeding 700,000 teu in October alone.