Intra-Asia Freight Rates Continue to 'Bottom Out' Ahead of Lunar New Year

The Intra-Asia maritime transport market is witnessing a continuous decline in freight rates, even as the 12th lunar month - typically the busiest period before the Lunar New Year - approaches. The primary causes have been identified as China's steel export restrictions and a slowdown in manufacturing activity, leading to a significant drop in cargo volumes.

Widespread Rate Plunge

According to Drewry’s Intra-Asia Container Index, the weighted average spot rate fell to $596 (excluding Terminal Handling Charges - THC) per 40ft container on January 30, representing a 10% decrease compared to two weeks prior.

The decline was most pronounced on routes connecting China with India and Northeast Asia:

•    Shanghai – Jawaharlal Nehru (India): Recorded the deepest drop of 24%, falling to $883/40ft.

•    Busan – Shanghai: Dropped 13% to an adjusted level of $46.

•    Shanghai – Singapore: Declined 7%, falling to $813/40ft.

Dual Impact: Steel Policy and Manufacturing Index

Since January, the Chinese government has required exporters of 300 types of steel products, including pig iron, to apply for export licenses. Concurrently, manufacturing activity slumped last month due to weak demand and the seasonal low period.

China's National Bureau of Statistics showed the Manufacturing Purchasing Managers' Index (PMI) fell to 49.3 in January, a decrease of 0.8 percentage points from December. This reflects that certain industries reduced output ahead of the Lunar New Year and market demand is gradually contracting.

However, industry experts believe steel is not the sole cause. A forwarder shared with The Loadstar: “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.”

Sensitive Spot Market

A characteristic of Intra-Asia trade lanes is the lower proportion of cargo moved under contract compared to long-haul routes; consequently, rates here are subject to more immediate and direct impact when demand falls.

Data from Xeneta reinforces this trend, showing that rates from Shanghai to Laem Chabang (Thailand) and Ho Chi Minh City (Vietnam) have declined by 6% to 6.5% over the past three weeks.

Commenting on this trend, Mr. Peter Sand, Chief Analyst, told The Loadstar that rates are in a normalization process after peaking in December.

Mr. Peter Sand stated: “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.”

See more:

• Escalating US Tariffs: A Shock to African Airfreight and a Test for AfCFTA
• 2026 Global Logistics Market Outlook: 5 Key Trends by Transportation Mode
• WorldACD: Global Air Cargo Market Stabilizes Ahead of Lunar New Year
• Maersk Takes Over Two Panama Canal Gateway Ports Following Court Ruling
• Port of Savannah Wraps Up 2025 with Second-Highest Throughput in History
• COSCO schedules: Vietnam - North America in Feb 2026
• SITC updates Vietnam-Intra Asia sailing schedules in Feb 2026
• COSCO updates Vietnam-North Europe sailing schedules in Feb 2026
• Port of Singapore 2025: Setting Double Records in Container Throughput and Bunkering
• International Shipping and Logistics Market Update Week 4/2026 | Phaata
• Indian Logistics Sector Eyes Policy Stability and Infrastructure Push in 2026
• CNC Enhances JTX Service: Direct Call to Sihanoukville and Optimized Transshipment via Vung Tau
• DHL Global Forwarding Launches Multimodal 'Truck-Air' Service: A New Bridge for the Asia-Europe Route

Source: Phaata.com (According to The Load Star)

► Find Better Freight Rates & Logistics Service Providers!