According to The Loadstar, the intra-Asia container freight market strengthened for a third consecutive week as unrest in the Middle East and typhoon-related disruptions across China tightened capacity and pushed spot rates higher on most major trades.
Rate Surge Driven by Weather and Geopolitics
Drewry’s Intra-Asia Container Index (IACI) rose 6% week on week on 20 August, reaching $1,091 per 40ft container. The consultancy attributes this increase to persistent port congestion, equipment shortages, and rising fuel costs — all exacerbated by six weeks of typhoon activity across China, including Typhoons Bavi, Noul, Dolphin, and Narra. North Asian ports now account for half of global congestion, with 2.2 million teu waiting to berth aboard vessels.
The Shanghai Containerised Freight Index also registered gains: the Shanghai–South-east Asia rate increased 9% from 14 August to $728 per teu on 21 August. Meanwhile, Shanghai–Jawaharlal Nehru Port (JNPA) rates jumped 26%, to $2,970 per 40ft, and Shanghai–Jebel Ali prices rose 6%, to $7,434.
Port Congestion Intensifies Across Key Hubs
Congestion at Indian ports worsened significantly: average vessel waiting times at Jawaharlal Nehru Port reached 24 hours in Week 33, up from 14 hours in Week 32. Other China-origin routes also posted steep increases — Shanghai–Singapore climbed 15%, to $1,256 per 40ft, while Shanghai–Laem Chabang rose 13%, to $804.
Drewry noted that renewed US–Iran hostilities and recent attacks on vessels have heightened security concerns. Any further escalation could disrupt shipping operations and apply additional upward pressure on freight rates. The consultancy stated:
“The broader intra-Asia market is likely to remain sensitive to port congestion, equipment availability, fuel costs, and developments in the Middle East.”
New Capacity Enters Market Amid Volatility
Despite ongoing pressure, capacity is expanding: Evergreen launched its SI8 service on 23 August, through a slot arrangement with Interasia Lines, Wan Hai, and KMTC. The four-week service deploys four vessels ranging from 1,700 to 3,000 teu, calling at Jakarta, Surabaya, Singapore, Port Klang, Tuticorin, and Nhava Sheva.
Spot rates on South and South-east Asia routes showed mixed movement: Ho Chi Minh City–Shanghai fell 14%, to $64 per 40ft, while Yokohama–Shanghai rose 11%, to $94. Drewry expects those trades to stabilise in the coming weeks as new capacity enters the market.
Source: The Loadstar
Compiled from international media by the SCI.AI editorial team.
