A premarket freight boom that may start in early September is expected to drive a rebound in intra-Asian shipping prices. Although overall demand remains strong, intra-Asian shipping prices were slightly subdued in August as new labor flows and reduced port congestion.FIBS Logistics Spokesperson Tells Business Journal, “Carriers are assessing whether September will see a peak in cargo shipments ahead of the Asian holiday, which includes the Chinese Golden Week holiday from October 1.” Therefore, they are considering raising the immediate interest rate, although the extent of the increase is unlikely to be as large.”
A senior manager at a Hong Kong freight agency toldBusiness Magazine, “Freight volumes remain strong as we enter the traditional peak trading season within Asia. Although freight rates have stabilized, freight demand does not need to increase too much and freight rates will rise again.” The Atlantic Network Express (ONE) said that although there has not been a “clear peak” before the October holiday, “the situation could change soon, so we will continue to keep a close eye on it.”
Cargo volumes in Asia grew by 10% to 15% in the first half of the year due to strong freight demand and new services, including Hai Fung International and Mid Sea Freight. MDS Transmodal is“Business Magazine”Specially prepared data show that strong economic growth has also led to the deployment of more momentum and an increase in the number of services from China to key markets year on year.
MDS Transmodal Senior Consultant Antonella Teodoro said that planned quarterly throughput between China and Thailand grew by 8% in the third quarter from 240m standard boxes in the same period last year, and the number of routes increased from 57 to 60. Scheduled quarterly throughput between China and Vietnam also increased, increasing from 580 million standard boxes in the same period last year to 6 million standard boxes in the third quarter of this year, an increase of 82 percent from the 330 million standard boxes in the third quarter of 2019.
Peter Sand, chief analyst at online rate benchmarking platform Xeneta, said that spot rates for some intra-Asian transactions in August had slipped from their historic high in July, but were still at an elevated level. Sand said the price of immediate shipping of 40-foot containers from Shanghai to Bangkok last week was close to $1,700 per FEU, down from $2,000 per FEU in July, but still 184 percent higher than August 2023. Shipping from Shanghai to Singapore also fell from $2,000 per FEU in July to about $1,700, but still 280% higher than in August 2023.
SANDER VS. BUSINESS MAGAZINEIt said: “The intra-Asian trade situation we are seeing now reflects well the overall and global trends that are taking shape.” The peak season in Asia starts at the end of the third quarter and lasts for the rest of the year.
PORT CONGESTION EASED LAST MONTH, WITH FREIGHT PRICES EASING WITHIN ASIA, ESPECIALLY PORTS SUCH AS SINGAPORE, PASANG AND SHANGHAI, ACCORDING TO CARRIERS AND FREIGHT AGENTS. A spokesman for ONE said: “The overall situation has improved and is currently close to normal levels. “Although some ports will experience slight delays of one to two days due to occasional weather conditions such as fog, these are within the normal range of variations.” Freight prices are stable at the moment, with no change in prices from Shanghai to Bangkok, Manila and Haiphong in the second half of August, according to the freight agent. Against this background, carriers are increasing regional services as well as intra-Asian long-haul trade services to the South Asian continent as freight volumes grow.
“In intra-Asian routes, we see stronger booking demand from Asia (especially China) to the Indian subcontinent (mainly West India) and the Middle East,” said a ONE spokesperson; a FIBS spokesperson said that Taiwan's Interasia Lines launched two South Asian routes at the end of August. These include the China-West India-Pakistan (IWI) service in partnership with Regional Container Shipping, Pacific International Shipping (PIL), United Airlines of China and Evergreen Shipping, and the China-Bangladesh Express (IBX) service in partnership with Pacific Shipping and Sea Lead Shipping.
On 30 August, Delta Cruiser's Asian subsidiary CNC also launched a modified China-Bangladesh BBX2 route connecting Shanghai, Kaohsiung, Ho Chi Minh City, Port of Pazang and Chittagong. Eastern Overseas said that after mainline carriers began diverting Eurasian routes around southern Africa and stopped docking, carriers have switched to intra-Asian routes to South Asia and the Middle East, resulting in a strong performance in Asia-India Subcontinent and Asia-Middle East trade.
Constantin Baack, CEO of MPC Container Shipping, said that the axis radial network proposed by the Masky and Herbert Gemini Alliance will create new demand for intra-regional trade, and Buck said in a company financial conference call on August 28: “We believe that once this alliance is established and operational early next year, we will be able to establish and operate. Demand for hotline service.” Hong Kong Freight Agents agreed with this and pointed out that as the region's economy continues to grow strongly, many Asian ports will lose the key connections currently provided by Muskie and Herbert.
“We believe intra-Asian freight rates will increase as we believe that intra-Asian operators such as TS Lines and Regional Container Lines will not be able to fill the capacity gap left by Masky and Herbert as their Gemini network will have three and four hub ports in the region,” the source said.
Herbrot CEO Rolf Habben Jansen said the Gemini network is being finalised and will be confirmed in September that the timeslot will go on sale before Gemini launches in February next year. Habben Jansen said at an online presentation on August 26 that the initial network launched in January last year had been adjusted for operational reasons, requiring improved port connectivity.
“Asian economies such as Vietnam, the Philippines and Indonesia are expected to grow between 5% and 6% this year and 7% next year, but direct long-haul flights to these countries will be reduced and shippers will have to rely on branch services to connect to Singapore or Yotan. Interest rates will definitely rise.” A senior Hong Kong freight agent said.
