Intra-Asia Container Index – 13 Aug

The Drewry Intra-Asia Container Index (IACI) experienced a 6% increase this week, reaching a six-week high of $1,028 per 40ft container. The index's rise was driven by market tightness due to unrest in the Middle East, coupled with poor weather conditions causing congestion in China. Freight rates on most trade lanes surged, with spot rates on routes from China to Southeast and South Asia strengthening as weather disruptions affected Chinese port operations.

Shanghai-Jawaharlal Nehru Port saw a 33% increase to $2,353 per 40ft container, while rates from Shanghai to Singapore and Jakarta climbed by 8% and 5% respectively to $1,096 and $1,533 per 40ft container. Typhoon Dolphin, the most powerful tropical storm to strike China in the past five weeks, forced vessels to seek shelter, contributing to port congestion.

As of Week 32, vessel waiting times averaged 87 hours in Shanghai and 36 hours in Ningbo. Restrictions and temporary suspensions were implemented at Shanghai terminals and other regional port facilities due to deteriorating weather. Drewry anticipates freight rates to stabilize in the coming weeks. Spot rates on trade routes from South Asia and Southeast Asia also rose, with Ho Chi Minh City to Shanghai rates increasing by 14% to $74 per 40ft container, and Laem Chabang to Shanghai rates up by 6% to $234, supported by weather-related disruptions.

In Taiwan, strong winds toppled seven containers at Yang Ming’s Keelung yard. Drewry expects freight rates to stabilize as weather disruptions subside and fuel costs rise, although ongoing US-Iran tensions and recent vessel attacks maintain market caution. An escalation in regional tensions could disrupt shipping and further escalate freight rates.