THE Shanghai Shipping Exchange has calculated that China's container freight rate has risen 17 per cent in 2010, close to the highs of g 2008 highs, reports Reuters.

The Shanghai Shipping Exchange China Containerised Freight Index (CCFI), which takes data from most of the leading liners with operations in China, hit 1,168.31 points for the week ending February 26.

From February 12, the index gained four per cent closing in on last year's 1,200 points and the record October 2004 high of 1,255.

"Freight rates were boosted by a cargo rush before the Chinese New Year, but the market now is generally quiet with mainland workers not fully returning to work after the holiday," said Hong Kong Shippers Council chief Sunny Ho.

The CCFI has risen 17 per cent in 2010 as carriers issue rate hikes after cutting capacity and introducing tonnage-absorbing slow steaming, analysts told Reuters.

Nomura has upgraded Asian container shipping to neutral from bearish, it said in a research report. "Rate increases may help container ship operators to return to profit in the second half," said DBS Vickers analyst Gideon Lo.