Intra-Asia container freight rates declined by 4% across multiple key lanes in late July 2026, including Shanghai–Nhava Sheva ($1,667/40ft), Shanghai–Jakarta ($1,475/40ft), and Shanghai–Kaohsiung ($1,433/40ft). Despite weakening demand, COSCO expanded its North-east Asia network via Yang Ming’s JTS service, while Sinotrans launched the CIW2 corridor linking China and India. Analysts attribute the softening to the end of an exceptionally busy H1 2026 for Chinese exports, with May marking an all-time export high overall — though South-east Asia shipments peaked in April. The traditional July–October peak season is losing momentum, even as carriers add capacity on high-demand routes like East Asia–Australia.
According to theloadstar.com, intra-Asia container freight rates declined across key trade lanes in late July 2026, even as major carriers expanded vessel capacity on regional routes.
Rate Softening Across Key Corridors
Drewry’s Intra-Asia Container Index recorded a 4% decline in spot rates on three major routes as of 23 July 2026: from Shanghai to Nhava Sheva (JNPA) fell to $1,667 per 40ft; Shanghai–Jakarta dropped to $1,475 per 40ft; and Shanghai–Kaohsiung settled at $1,433 per 40ft. The Shanghai Containerised Freight Index (SCFI) confirmed the trend, showing the Shanghai–South-east Asia rate decreased by $10 to $628 per teu on 24 July, while the Shanghai–Nhava Sheva rate fell by $75 to $1,778 per teu.
Capacity Expansion Amid Weakening Demand
COSCO joined Yang Ming’s Japan-Thailand-South China (JTS) service as a vessel provider, expanding its North-east Asia network with a three-week rotation calling at Nagoya, Tokyo, Yokohama, Keelung, Kaohsiung, Chiwan, and Xiamen. Separately, Sinotrans strengthened its China–India connectivity by slotting onto Emirates Shipping Line and Evergreen’s China–India CSX/CI8 service, which it will market under the new designation CIW2, linking north and south China with India’s west coast via Port Klang and Colombo.
Market Context and Analyst Commentary
Drewry stated:
“The intra-Asia container freight market is showing signs of softening as the peak season loses momentum.”
Xeneta’s chief analyst Peter Sand observed that the unusually strong first half of 2026 for Chinese exports has concluded, noting that rates have fallen broadly in July, especially on China–India lanes. He added that Chinese export volumes hit an all-time high in May overall, but peaked for South-east Asia in April. The traditional intra-Asia peak season runs from July to October, driven by early manufacturing runs and retail inventory buildup — a window now losing steam.
Underlying Drivers and Regional Dynamics
Despite the recent softening, Chinese export volumes remain the primary support for intra-Asia freight rates. Earlier in June 2026, intra-Asia rates were reported more than 80% higher than pre-US/Israel conflict levels against Iran — underscoring how geopolitical volatility had previously inflated demand and pricing. Meanwhile, shipping lines are also pouring capacity into the East Asia–Australia route, where freight rates surged earlier in June. Maersk, CMA CGM, and Mediterranean Shipping Company (MSC) continue to prioritize lean, high-frequency services on resilient corridors like China–Australia, where surcharges help sustain strong rates.
Source: The Loadstar
Compiled from international media by the SCI.AI editorial team.
