Drewry: Intra-Asia Container Index Rose 9% Last Week

The Drewry Intra-Asia Container Index (IACI) increased by 9% to $1,312 per 40ft container this week, marking the fifth consecutive weekly rise. This surge is attributed to typhoon-related disruptions that have tightened available capacity in Asia's ports. Typhoon Saudel caused Shanghai and Ningbo ports to close from August 26-28, contributing to heightened congestion and long vessel waiting times.

China's Transport Ministry has warned that further adverse weather could disrupt transport and supply chains. Middle East tensions have also supported rates, with Shanghai-Jebel Ali rising by 6% to $8,254 per container. Meanwhile, Shanghai-to-Busan and Shanghai-to-Laem Chabang rates saw significant increases of 30% and 28%, respectively.

Shippers are experiencing disruptions and delays at transhipment hubs like Busan, Hong Kong, and Singapore. Drewry anticipates further rate increases due to ongoing weather disruptions and port congestion. While spot rates have fluctuated, some routes like Busan to Shanghai saw a 6% rise to $114 per container, and Laem Chabang to Shanghai declined by 17% to $194 per container.

Japanese operator Kambara Kisen will adjust its NK1 service, replacing Otaru with Sapporo starting September 22. Despite these challenges, Drewry predicts that freight rates will stabilize in the coming weeks. The intra-Asia container freight market has hit a new high this week, driven by weather-related disruptions and rising bunker costs, exacerbated by US-Iran tensions.