Capacity shortage on intra-Asia pushing up rates

Reduced container shipping capacity on intra-Asia tradelanes has led to fewer sailings and higher rates for freight sourcing. Shipping lines have deployed as much capacity as possible on the more-lucrative transpacific and Asia-Europe trades, leaving intra-Asia capacity down 11% and with 331,000 fewer slots than in 2020.This has had an impact on freight rates. According to Xeneta, a freight rate benchmarking platform, in the first half of January, spot rates from the main Chinese ports to the main Japanese and South Korean hubs rose to an average of $1,800 per 40ft, compared with $1,400 in 2021 and $640 in 2020.