Intra-Asia rates continue to fall, as Chinese steel export restrictions and a slowdown in manufacturing contribute to falling volumes, heading into Chinese New Year this month.
Drewry’s Intra-Asia Container Index showed rates averaged $596 (excluding terminal handling charges) per 40ft on 30 January, a 10% decline from a fortnight ago.
The Shanghai-Jawaharlal Nehru route recorded the steepest drop, falling 24% to $883 per 40ft, followed by Busan-Shanghai, with a 13% correction to $46. The Shanghai-Singapore rate lost 7% to $813 per 40ft.
Since January, the Chinese government has required shippers of 300 types of steel items, including pig iron, to obtain export licences. Manufacturing also dipped last month, due to weak demand and a seasonal lull.
One forwarder shared: “The limit on steel exports is just one factor. Most pre-Chinese New Year shipments were done more than a month ago, as retailers typically start stocking up two months before the holiday. Furthermore, there is no shortage of ships or containers, as more services were added in December.”
The National Bureau of Statistics shows the purchasing managers’ index (PMI) for China’s manufacturing sector fell to 49.3 in January, down 0.8 percentage points from December, as some industries slowed output ahead of Chinese New Year and market demand tapered off.
Intra-Asia routes have a lower proportion of contracted cargo than long-haul, so rates are more immediately affected by falling demand. Xeneta statistics show rates from Shanghai to Laem Chabang and Ho Chi Minh City have decreased 6% to 6.5% over the past three weeks.
Chief analyst Peter Sand told The Loadstar rates were normalising after peaking in December.
He said: “Spot freight rates out of Shanghai have fallen in 2026, but only after a strong end to the year. As the Chinese licence system to control certain steel exports was only set up in December, it’s not front-loading that drove the market up. Nor is it likely to be a massive ‘depresser’, at least across the board.”
Source: https://theloadstar.com/intra-asia-shipping-rates-still-on-the-decline-as-cny-looms/
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