Growing demand drives up China-India box rates, despite capacity boost
Container freight rates from China to India have substantially strengthened in the past few weeks, ...
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Sinotrans Container Lines (Sinolines) is considering adding new port pairs within Asia and beyond to its Indian network, as it aims to capitalise on its growth momentum.
The China state-owned intra-Asia liner mainly calls out of Indian east coast ports, partnering with a few niche regional operators.
Sinolines debuted in India in the second half of 2023 with a Far East-East India connection in a vessel-sharing agreement (VSA) with Sealead, TS Lines and SITC, on a rotation of Qingdao-Shanghai-Ningbo-Shekou-Chennai-Visakhapatnam-Port Klang-Shekou-Qingdao.
Its operations in India are handled by Mumbai-based agent Abrao Group.
The budding intra-Asia carrier claims its volumes in and out of the east/south India markets have seen strong growth this year, despite increased competition.
“We have been able to expand in East India as our first step to develop the Indian market,” said Patrick Chow, deputy GM of network planning, at a trade event in Chennai. “Our vision is to expand westwards via semi long-haul routes, starting with India as the gateway to the Middle East and Africa.”
Deviprasad, Sinolines’ chiefowners representative in India, explained that the carrier was mulling plans to extend its market reach for Indian customers across South-east Asia, Africa and the Persian Gulf.
“Our recent service expansion to South America – covering Mexico and Manzanillo – has been very successful, with volume growth from India via Shanghai/Qingdao transhipment,” Mr Deviprasad told The Loadstar.
“So, more South-east Asia port coverage will give customers more access and enhance our overall market coverage from India.”
Mr Deviprasad also claimed the Indian east coast service had gained significant year-on-year volume traction in the first eight months of 2025 on both directions – up 20% in Indian import handling, and up 45% in Indian export lifts.
Lenny Abrao, MD of Mumbai-based Abrao Group, believes the outlook for the historically lagging Indian export trade to China is looking up, with measurable demand growth reported across sectors.
“We are seeing an increase [for export demand] over fiscal year 2024-25 in pharmaceuticals (+6.9%), semiconductors and components (+26%), engineering goods (+4.9%) and gems & jewellery (+15.5%),” he said.
Intra-Asia carriers calling at Indian ports traditionally rely on the China-origin backhaul trade, in large part to keep their services operationally and commercially viable. A more-balanced trade pattern would certainly be a boost for carriers, industry sources believe.
However, other industry participants believe trade between China and the wider India/Middle East is set to weaken, citing current market conditions; some sources claiming that the short-term demand picture reveals that “India has stopped buying”, with Shanghai-Dubai spot rates at around $600 per 40ft, and rates on the backhaul leg barely above zero.
Nonetheless, India and China recently vowed to rebuild bilateral trade ties that had been strained by border disputes recently, in a broader strategy to counter-balance tariffs and other barriers on exports to the US, which have the potential to redefine supply chains out of Asia.
While the renewed effort on trade development is noteworthy, some sources believe New Delhi will continue to adopt a cautious approach in dealing with Beijing, as any dumping of goods by Chinese suppliers could undermine Indian manufacturing, recently boosted by trade diversification.
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ROHINTON MISTRY
September 24, 2025 at 2:14 pmVery Informative and great site for procuring updates on the Industry News.