Intra-Asia rates continue to be held up by Chinese exports.
While a correction in Shanghai-South-east Asia rates was seen last week, other lanes, such as China-Taiwan, have seen a pick-up.
The Shanghai Containerised Freight Index on 26 June showed the Shanghai-Singapore rate corrected by $7 from 19 June, to $682 per teu.
According to Drewry, on 25 June, Shanghai-Manila rates fell 26% from 18 May, to $575 (excluding terminal handling charges) per 40ft after rising 12% the previous week, as cargo volumes eased and shipping lines adjusted pricing.
Shanghai-Laem Chabang rates also decreased to $1,030, reflecting easing market conditions, following the US–Iran peace deal on 17 June.
Xeneta’s chief analyst Peter Sand said his company’s data showed an $84 drop in the Shanghai-Singapore, a bigger margin than that the SCFI showed.
Mr Sand told Лодстар: “It’s still a minor change and too early to call a changed trend. The trade has been on the rise since the onset of the US-Iran war.”
He noted that after declining since mid-May, China-Taiwan rates were recovering. Market estimates are that rates have gone up by $30 to $100, to $250 to $500 per 40ft.
Mr Sand added: “Chinese exports are a huge driver of the market right now, for sure.”
Xeneta’s data shows that between January and April, China’s containerised exports to South-east Asia were up 5.7% year on year.
Trade tensions between the US and China, combined with elevated tariff barriers, have continued to encourage supply chain diversification. Manufacturers are increasingly expanding production capacity elsewhere in Asia.
Accordingly, MSC has expanded its Lang Co Express service, which links southern China to central Vietnam, restoring calls to Nansha, Ho Chi Minh City, Phuoc An, and Singapore, in addition to Yantian, Chiwan, Qui Nhon, and Danang.
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