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China and SE Asia Shipping News – August 2026

Price Trends

In August 2026, rates from China to the UK/Northern Europe remain elevated but showing early signs of stabilisation or mild softening after a strong summer peak-season run-up. Expect a working range of roughly $4,200–$5,800 per FEU, with spot rates sensitive to blank-sailing discipline and residual geopolitical risk premiums.

Latest indices: Drewry’s WCI assessment around 30 July showed Shanghai–Rotterdam at approximately $4,677/FEU (down 3% week-on-week) and Shanghai–Genoa at $5,630/FEU (down 6%). These levels reflect a cooling after sharper rises earlier in the peak season.

Earlier summer reports indicated Asia–Europe rates had climbed more than 60% year-on-year in some periods, supported by peak-season demand and capacity management.

Carriers had filed higher FAK rates and Peak Season Surcharges (PSS) for July–August, helping keep floors firm even as weekly volatility appears.

UK-specific rates to Felixstowe/Southampton generally track the Northern Europe average, sometimes with a modest premium for local handling and potential schedule adjustments.

Route Changes

Cape of Good Hope routing continues to dominate the majority of Asia–Europe services, though the overall risk picture has improved modestly compared with the March–May peak of the Iran conflict.

Strait of Hormuz: Following the mid-June US–Iran memorandum of understanding, limited commercial traffic resumed. Daily transits recovered from near-zero but remained well below the pre-war average of ~100+ ships (early post-reopening averages were reported around 28 ships/day in the first weeks). Recovery has been uneven, with occasional incidents and enforcement actions keeping risk premiums and insurance costs elevated into late July/early August.

Red Sea / Suez: Full, routine return of mainline Asia–Europe container services remains limited. Most carriers continue to prioritise Cape routing for reliability, though some selective or test sailings have occurred when conditions allow. Transit times for China–UK shipments therefore stay extended (typically 40–50 days via Cape versus ~30–35 days via Suez).

UK ports are handling the longer lead times with generally manageable congestion, supported by earlier capacity and technology investments.

Shipping Carrier Activities

Carriers are actively managing capacity through the peak season while monitoring Middle East developments:

Blank sailings remain a key tool (dozens scheduled across East–West trades through August in some reports) to support rate levels amid structural overcapacity.

Major lines (Maersk, MSC, CMA CGM, Hapag-Lloyd and alliance partners) continue to apply Peak Season Surcharges and adjust FAK structures. Network reliability on Cape-routed services is the priority.

Equipment availability and repositioning are under pressure in peak season; some shippers report tighter booking windows.

Possible Risks to Rates

August carries both upside and downside risks:

Geopolitical: Any renewed escalation around Hormuz or the Red Sea could quickly reinstate higher war-risk and bunker surcharges and reinforce Cape dominance. Sustained de-escalation and clearer safe-passage protocols would support gradual rate softening and potential schedule normalisation.

Peak-season demand: Continued strong retail/import volumes into Europe could keep rates firm or push them higher into September; weaker-than-expected demand would accelerate the recent mild declines.

Overcapacity: The large orderbook from prior years continues to exert medium-term downward pressure once the peak season ends.

Operational: Fuel-price volatility, potential port bunching from rerouted vessels, and regulatory costs (including carbon-related charges) remain factors.

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Kitchens and Bathrooms

With a wide range of styles and choices, we offer a full catalogue of bespoke kitchens and bathrooms for commercial applications.

Over 20 years in manufacturing in a variety of sectors provides Horizon B2B Trading with the experience, knowledge and track record to deliver high quality, high volume solutions to many commercial trades.

If you’re looking for tailored programmes to fit your custom specifications and volumes, then enquire today and let us help. We specialise in large volume sourcing, manufacturing and distribution.