South East Asia now making the rates running

IN A reversal of recent trends observers are finding “inexplicable” container freight rates between South East Asia main ports and the same in Australia have jumped substantially this week.

At the same time, spot rates from Shanghai to Sydney, according to the Shanghai Containerized Freight Index, fell back for the second successive week.

According to Xeneta South East Asia rates have now been running for 10 successive weeks, highlighted by a 10% rise in Week 26, a 16% boost in Week 28 and now an 18% jump in Week 30, to USD 2,962/FEU. In Week 20 it was USD 1,611/FEU.

While carriers have been pushing rate restorations, rises and surcharges all year it’s taken a long time for meaningful movement to occur and sources consulted by DCN were a little mystified, other than attribution to congestion in key hub ports and a reluctance to commit extra capacity to meet peak demand, thus squeezing shippers.

There’s also a theory that any spare tonnage has been committed to other, over-ripe trades, not least NEA-Australia.

However, that route – specifically China-Australia – saw a 3% slip to USD 4,410/FEU in Week 30, hardly a momentous reversal but a likely reflection of the additional tonnage coming on the berth from this week onward. With several notifications coming through of port omissions in China due to weather-induced congestion, space may again tighten despite the influx of nominal capacity.

Commentators have suggested the NEA rate-softening is likely to be only temporary, with peak import season yet to properly arrive, and the market leaders confident enough about demand to maintain the price margins over competitors.

Rate rise and other advisories seem to have reduced in the past seven days but they’re still appearing.

ANL has amended in Inland Emergency Fuel Surcharge, saying due to the current geopolitical environment and the resulting uncertainty affecting international energy markets, fuel prices are expected to remain volatile in the coming weeks.

“Diesel, which represents a significant component of inland transportation costs, may therefore lead to short-term fluctuations in the operating costs of inland transport services.

“In order to continue providing reliable and sustainable inland transport services while ensuring transparency regarding fuel-related cost developments, ANL & CMA CGM group will amend the Inland Emergency Fuel Surcharge (IEFS) applicable to mode of transport impacted in each country.

“For Australia, the Inland Emergency Fuel Surcharge (IEFS) will apply to inland services, for cargo loading and unloading in Australian ports as follows: 

CMA CGM has announced that following the renewed escalation of hostilities in the Strait of Hormuz over the past days, fuel prices have surged sharply again, reversing the easing observed in recent weeks. 

“As a result, bunker costs have significantly increased across all regions and trades, impacting the overall cost of ocean transportation. To continue providing reliable and sustainable services in this exceptional context, CMA CGM will apply an Emergency Fuel Surcharge (EFS) as follows:

The EFS will be effective as from 1 August 2026 (Loading date), or subject to regulatory filings where applicable, and will remain in place until further notice, the carrier said.

COSCO Shipping has announced that due to cost increases, the Tasmania Arbitrary Tariff will be adjusted effective 15 August.

MSC will restore rates between China, Hong Kong, Taiwan, Japan, Korea and South East Asia to Australia on 1 August, at USD 500/TEU.