News / Chinese factories’ post-holiday opening fails to lift intra-Asia rates

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Intra-Asia rates have continued to slide even after Chinese factories resumed work after the new year holiday.

The break ended on 24 February, but on 27 February, Drewry’s Intra-Asia Container Index recorded a continued downward trajectory for the ninth week, losing $3 from the previous week to reach $552 per 40ft.

The Jakarta-Shanghai and Shanghai-Singapore rates registered the steepest declines, losing 13%, falling to $47 per 40ft and $621 per 40ft, respectively.

Shipping lines, optimistic of cargo volumes, continue adding capacity despite the conflict situation, and launching new services.

Drewry said: “As production in Chinese factories picks up again, carriers are keen to re-introduce capacity. If they do so too fast, freight rates will continue decreasing in coming weeks.”

Drewry’s senior consultant (supply chain advisors), Stijn Rubens, told The Loadstar that carriers were adding services for several reasons.

He explained: “Even if the volumes are not immediately up to 100%, the ships need to be there to maintain the customer relationship.”

Shifting trade patterns, resulting from President Trump’s tariff war, also mean that ‘first mover’ carriers can benefit from building the customer relationship.

Mr Rubens said: “General overcapacity is forcing carriers to find ways to utilise their vessels. This is causing new loops to be developed, as well as vessel upsizing to existing loops.”

Those launching new intra-Asia services include TS Lines, X-Press Feeders, and Zim’s intra-Asia arm, Gold Star Line.

TS Lines will start a new North China-Thailand Express (NTX) service with CMA CGM’s intra-Asia arm, CNC Line, by joining the latter’s North China-Thailand 8 (NT8) service, from 30 March.

The Hong Kong-headquartered operator will deploy the 2,954 teu TS Tacoma on the service, replacing one of three ships deployed by CNC on the service that connects Laem Chabang, Hong Kong, Nansha, Xingang, Dalian, Qingdao, Hong Kong, Shekou, and Laem Chabang.

X-Press Feeders and Gold Star Line will introduce a joint South China-Thailand-Cambodia service on 16 March.

Marketed as CSX and SKV by the partners, this upcoming loop will turn in two weeks, linking Shekou, Laem Chabang, Sihanoukville, Yantian, and Shekou, with two vessels, the 1,744 teu Zhong Gu 6 (from X-Press) and the 1,717 teu Ophelia (Gold Star), offering weekly calls.

Ophelia is scheduled for the inaugural sailing of the CSX/SKV on 16 March.

It will be the second liner service in the current market to offer weekly connections between Yantian and Sihanoukville, after Hapag-Lloyd’s South-east Asia-South China VCS loop, operated by two 1,900 teu vessels.