Freight rates for intra-Asia shipments continue to decline as Chinese export activity in the first half of 2026 shows a downturn.

Container Freight Rate Trends

According to Drewry, as of July 23, the cost of shipping a 40-foot container from Shanghai to JNPA (Nava Sheva) dropped by 4% compared to July 16, reaching $1,667. Similar 4% decreases were recorded on routes from Shanghai to Jakarta ($1,475) and Kaohsiung ($1,433).

On July 24, the Shanghai Containerized Freight Index indicated that the cost of shipping from Shanghai to Southeast Asia fell by $10 compared to July 17, reaching $628 per TEU. The rate for the Shanghai–Nava Sheva route decreased by $75, down to $1,778 per TEU.

Expansion of Shipping Line Capacity

Shipping companies continue to increase capacity on intra-Asian routes. Cosco has expanded its network in Northeast Asia by joining Yang Ming’s Japan–Thailand–South China (JTS) service as a vessel operator for a three-week rotation calling at the ports of Nagoya, Tokyo, Yokohama, Keelung, Kaohsiung, Chiwan, and Xiamen.

Sinotrans is expanding its network between China and India by utilizing the China–India CSX/CI8 service operated by Emirates Shipping Line and Evergreen. This service, to be promoted as CIW2, will connect northern and southern China with India’s west coast via Port Klang and Colombo.

Market Trends

The intra-Asia container shipping market is showing signs of weakening as activity slows during the peak season. July saw rate reductions on most routes, both international and intra-Asian. The decline is particularly noticeable on routes from China to India and between China and Southeast Asia.

In May, Chinese exports reached record levels across all directions, but for Southeast Asia, the peak occurred in April.

Seasonal Features

Traditionally, the peak season for intra-Asia container shipping falls between July and October, driven by early production cycles and restocking in retail. This period is also accompanied by a pre-holiday surge in demand later in the year.