Intra-Asia freight rates are expected to remain elevated through January as tight capacity continues during an extended peak season ahead of the Lunar New Year, reports London's S&P Global.

Rates on services between China and Southeast Asia have reached multi-month highs, driven by frontloading ahead of reciprocal tariffs between the US and China, which have since been paused. Carriers are announcing general rate increases of US$50 to $150 per TEU on a bi-weekly basis, according to FIBS Logistics in Singapore.

Spot rates from Shanghai to Singapore hit $540 per TEU last week, the highest since Jan. 10, data from the Shanghai Shipping Exchange showed. Xeneta reported similar trends, with FEU rates from Shanghai to Singapore climbing to $1,110, the highest since June.

Rates from Shanghai to Bangkok reached $1,431 per FEU, the highest since August 1, while Shanghai to Ho Chi Minh City rose to $1,045 per FEU, last seen in July. Analysts said this year's pre-Christmas peak will merge into the pre-Lunar New Year rush, as factories in China close early to allow workers to return home.

Chinese customs data showed exports to ASEAN grew US$61 billion between February and September, while exports to Northeast Asia increased US$41 billion. Exports to the US fell $70 billion in the same period due to tariff disputes.

Oxford Economics said ASEAN now accounts for a steadily rising share of China's outbound shipments, offsetting weaker demand in developed markets in the US and Northeast Asia.

https://www.shippingazette.com/news?news_id=9251100000918