
War and weather continue to limit intra-Asia capacity and keep rates high
The intra-Asia container freight market strengthened for a third consecutive week as unrest in the Middle East and typhoon-related disruption across China tightened capacity and pushed rates higher on most major trades.
Drewry's Intra-Asia Container Index (IACI), a benchmark widely monitored by procurement teams, rose 6% week on week on 20 August, to $1,091 per 40ft, and the consultant expects prices to continue increasing in the coming weeks, supported by persistent port congestion and equipment shortages.
Spot rates on routes from China to South-east and South Asia strengthened further as port operations remained disrupted after China was hit by typhoons Bavi, Noul, Dolphin, and Narra over the past six weeks, while North Asian ports account for half of global congestion, with 2.2 million teu on vessels waits to berth.
And Middle East tensions provided an additional source of upward pressure: rates from Shanghai to Jawaharlal Nehru Port (JNPA) increased 26%, to $2,970 per 40ft, while Shanghai-Jebel Ali prices rose 6%, to $7,434.
Congestion at Indian ports also intensified. Average vessel waiting times at JNPA reached 24 hours in Week 33, compared with 14 hours in Week 32.
Other China-origin trades also recorded significant rate increases. Shanghai-Singapore climbed 15%, to $1,256 per 40ft, while Shanghai-Laem Chabang increased 13%, to $804.
The Shanghai Containerised Freight Index also registered gains in the Shanghai-South-east Asia rate, which moved up by 9% from 14 August, to $728 per teu, on 21 August.
Drewry said the market remained supported by weather-related disruption, rising fuel costs, and uncertainty surrounding the Middle East. Renewed US-Iran hostilities and recent attacks on vessels have heightened security concerns, with any further escalation potentially disrupting shipping operations and putting additional upward pressure on freight rates.
Elsewhere in the intra-Asia market, spot rates on routes from South and South-east Asia showed more mixed movements. Ho Chi Minh City-Shanghai rates fell 14%, to $64 per 40ft, while Yokohama-Shanghai rates increased 11%, to $94.
Capacity is, nevertheless, set to expand. Evergreen launched its SI8 service on 23 August, through a slot arrangement with Interasia Lines, Wan Hai, and KMTC. The four-week service will deploy four 1,700-3,000 teu vessels, calling at Jakarta, Surabaya, Singapore, Port Klang, Tuticorin, and Nhava Sheva.
Drewry expects rates on the South and South-east Asia trades to stabilise in the coming weeks as additional capacity enters the market.
However, the consultancy added: "The broader intra-Asia market is likely to remain sensitive to port congestion, equipment availability, fuel costs, and developments in the Middle East."