Chinese containerised exports to Southeast Asia rose 5.7% year-on-year in Q1 2026, driving intra-Asia freight markets despite lane-specific corrections. Shanghai–Singapore rates fell $7 to $682/TEU by 26 June, while Shanghai–Manila dropped 26% to $575/40ft. Xeneta recorded a steeper $84 Shanghai–Singapore decline, though analyst Peter Sand called the shift 'minor' and premature to signal a trend reversal. China–Taiwan rates rebounded $30–$100, reaching $250–$500/40ft. MSC expanded its Lang Co Express service across six ports in southern China and Vietnam.
According to theloadstar.com, Chinese containerised exports continue to underpin intra-Asia freight markets, even as select lanes experience short-term corrections — including a $7 weekly decline in the Shanghai–Singapore rate to $682 per TEU as of 26 June 2026.
Rate volatility amid shifting trade flows
While the Shanghai–Singapore lane corrected downward, other routes showed resilience or growth. Drewry reported that Shanghai–Manila rates fell 26% between 18 May and 25 June 2026 — dropping to $575 per 40ft container (excluding terminal handling charges). That followed a 12% rise the prior week, reflecting dynamic carrier pricing responses to easing cargo volumes. Similarly, Shanghai–Laem Chabang rates declined to $1,030 per 40ft, aligning with broader market softening after the US–Iran peace deal on 17 June 2026.
Xeneta data confirms divergence across lanes
Xeneta’s chief analyst Peter Sand noted that his firm’s index registered an $84 drop for Shanghai–Singapore — a steeper correction than the $7 reflected in the Shanghai Containerised Freight Index (SCFI). In an interview with The Loadstar, Sand cautioned against overinterpreting early movements:
“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 highlighted recovery in China–Taiwan rates, which rose by an estimated $30 to $100, reaching $250 to $500 per 40ft container.
Growth drivers and supply chain realignment
Xeneta’s data shows Chinese containerised exports to Southeast Asia increased 5.7% year-on-year between January and April 2026. This expansion occurs against a backdrop of persistent US–China trade tensions and elevated tariff barriers — factors accelerating supply chain diversification. Manufacturers are increasingly relocating production capacity across Asia, prompting carriers to adjust service networks. MSC expanded its Lang Co Express service linking southern China to central Vietnam, restoring port calls at Nansha, Ho Chi Minh City, Phuoc An, and Singapore, in addition to Yantian, Chiwan, Qui Nhon, and Danang.
Broader market context and capacity shifts
Intra-Asia container freight rates have surged to a two-year high ahead of the traditional peak season (July–October), with some lanes now trading more than 80% above pre-US/Israel conflict levels against Iran. Bunker surcharges — rather than pure demand growth — are sustaining rate strength despite sluggish cargo volumes on several corridors. Meanwhile, carriers are adding capacity on high-performing routes: shipping lines are deploying additional vessels on East Asia–Australia services following sharp freight-rate increases, and Maersk is launching a new “lean service” targeting the China–Australia lane.
Source: The Loadstar
Compiled from international media by the SCI.AI editorial team.
