Freight rates rebound on select petchem routes, bucking global downturn

Despite a general decline in global container rates in April, freight rates from the United States to key destinations — particularly India, Turkey, and Europe — as well as from China to Southeast Asia saw increases, signaling a strategic shift in global trade flows. Shippers appear to be rerouting volumes and accelerating shipments to take advantage of a 90-day tariff pause amid escalating trade tensions.

According to the monthly data on 40-foot container rates obtained from Drewry, April marked a turning point for several secondary lanes.

Ex-USG routes soar to multi-year highs

Houston – Chennai/ India rose 18% in April to $3,633 from March — approaching levels last seen in mid-2023.

Houston – Istanbul/Türkiye saw a 9% increase, reaching $3,354, the highest in nearly a year.

Houston - Ho Chi Minh City/Vietnam also jumped 9% on month to $1601.

Houston – Rotterdam/Northwest Europe saw a relatively small monthly increase of 3% to reach $1,782 following another 5% rise in the previous month. Despite this, the freight rates for this route stand near 2-year highs.

China-SEA routes jump as well

Shanghai – Ho Chi Minh City/Vietnam climbed 24% ($990 to $1,222) — the strongest since early this year.

Shanghai – Jakarta/Indonesia rose 18%, from $1,608 to $1,895, also the highest year-to-date.

Supply chain repositioning

These movements reflect the impact of the US-led trade war, which has dampened direct China–US and US–EU trade lanes. In response, companies are increasingly using alternate routes for shipments, particularly from the US to South Asia and from China to Southeast Asia — either for regional delivery or for onward movement toward Western markets.

Chinese exporters, who do not benefit from the same 90-day tariff pause, are ramping up shipments to regional partners like Vietnam and Indonesia, aiming to transship goods to Western destinations via neutral or less-exposed hubs. This has placed upward pressure on intra-Asia rates.

While broader freight rate trends remain soft, April’s selective increases underscore how geopolitical maneuvers and temporary trade relief are redrawing global logistics maps — with alternative lanes now playing a starring role.