The Drewry Intra-Asia Container Index (IACI), the benchmark widely referenced by procurement teams, rose 6% this week to $1,028 per 40ft container, reaching a six-week high. Market tightness caused by unrest in the Middle East was further compounded by poor weather conditions, which led to congestion across China. This was the second consecutive weekly increase in the index, with freight rates rising on most trade lanes.

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Spot rates on trade lanes from China to Southeast Asia and South Asia strengthened further this week, as worsening weather disrupted port operations across China. Ongoing Middle East tensions also supported rates, with Shanghai–Jawaharlal Nehru Port increasing 33% to $2,353 per 40ft container. Rates from Shanghai to Singapore rose 8% to $1,096 per 40ft container, while those to Jakarta increased 5% to $1,533, supported by growing congestion across Asian ports.

Typhoon Dolphin, the third and strongest tropical storm to hit China in the past five weeks after Typhoon Bavi and Noul, forced vessels to seek refuge and added to congestion around East Asian ports. Around 2.4 mteu of containership capacity is currently waiting outside Chinese ports. In Week 32, average vessel waiting times reached 87 hours at Shanghai and 36 hours at Ningbo. Shanghai terminals and additional regional port facilities also introduced restrictions and temporary operational suspensions as weather conditions deteriorated. Drewry expects freight rates to stabilise in the coming weeks.

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Spot rates, which typically remain stable on trade routes from South Asia and Southeast Asia, also increased this week. Rates from Ho Chi Minh City to Shanghai rose 14% to $74 per 40ft container, while Laem Chabang–Shanghai rates increased 6% to $234, supported by weather-related disruptions at Southeast Asian ports. In Taiwan, strong winds caused seven containers at Yang Ming’s Keelung yard to topple, with some hitting nearby cranes. Drewry expects freight rates to stabilise in the coming weeks.

The intra-Asia container freight market continues to strengthen following weather-related disruptions at major Asian ports. Rising fuel costs and ongoing uncertainty in the Middle East have also helped reverse the recent downwards trend in freight rates. Meanwhile, renewed US–Iran hostilities and recent attacks on vessels have heightened security concerns, keeping market sentiment cautious. A further escalation in regional tensions could disrupt shipping operations and put additional upwards pressure on freight rates.

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