Chinese exports continue to drive trade and support intra-Asia rates
Intra-Asia rates continue to be held up by Chinese exports. While a correction in Shanghai-South-east Asia ...
© Tatyana Klimenko
By Alison Koo
Mainline operators are deploying more Asia-North Europe capacity to ride on Asian exporters’ rush to get cargo out before the Chinese New Year holidays begin 17 February.
The Shanghai Container Freight Index shows that, in teu terms, Asia-North Europe rates gained 10%, to $1,690, while for 40ft containers, the growth was 13%, to $2,880.
Linerlytica reports today that market sentiment turned positive at the beginning of the year, with teu-mile growth edging ahead of supply.
The consultancy said: “Cargo demand across the Far East remains very firm ahead of the Chinese New Year holiday in February, with all main export tradelanes out of China and South-east Asia (apart from the transpacific) still soaking up all available vessel tonnage.”
To fight for market share, shipping lines are avoiding hefty GRIs, with online quotes being below announced rate hikes.
But, although capacity utilisation on the Far East–North Europe route remains high, carriers have failed to form a united front on their rate hike efforts.
MSC announced plans to raise rates on this route to $4,000 per 40ft from mid-January, but its online quotation for post to mid-January sailings is much lower, at $3,140. And Maersk Line lifted its quotation for sailings from the third week of January by barely $100 to around $2,600 per 40ft.
Linerlytica analyst Tan Hua Joo told The Loadstar: “The pre–Chinese New Year window is relatively short and carriers are trying to maximise liftings by deploying additional capacity. This will put a cap on how high they can push the rates.”
Although carriers are adding more Asia-Europe sailings in the next seven weeks, actual capacity tends to slip below the forward published schedules due to voyage delays.
Port congestion in 2025 transcended the previous highs of 2022, due to erratic vessel schedules and labour disruptions, and this is likely to persist, especially if there is a substantial resumption of Suez Canal transits.
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