Drewry: Intra Asia Container Index Up 6% Last Week

Drewry reported that their Intra-Asia Container Index (IACI) increased 6% last week, reaching an all-time high of $1,402 per 40ft container. This rise is attributed to ongoing geopolitical tensions and typhoon disruptions affecting supply chains and capacity. The IACI Composite Index also hit a record high for the fourth consecutive week, reflecting the continued impact of these disruptions.

Spot rates from China to Southeast and South Asia markets rose, driven by increased demand ahead of China's Golden Week holiday and adjustments in capacity and network operations. For instance, rates from Shanghai to Laem Chabang and Ho Chi Minh City climbed by 15%, reaching $1,324 and $1,161 respectively. Meanwhile, the geopolitical situation in the Middle East worsened, with rates on routes from Shanghai to Jebel Ali and alternative routes via Jawaharlal Nehru Port increasing by 13%.

Storms also disrupted vessel schedules and caused congestion at Chinese ports, with average waiting times reaching 78 hours in Shanghai. Drewry anticipates rates to stabilize in the coming weeks, noting minor fluctuations in some routes, such as an 8% rise in Busan-Shanghai rates and a 7% increase from Yokohama to Shanghai. Changes in Drewry's dedicated CIMEX services to China-Middle East routes were also mentioned, with adjustments to rotation and turnaround times.