The Drewry Intra-Asia Container Index (IACI), a critical benchmark for global procurement teams, has recorded its third consecutive weekly increase, rising 6% to $1,091 per 40ft container. This upward trend reflects a tightening market driven by geopolitical instability in the Middle East and severe weather-related congestion across major Chinese ports.
The surge in freight rates is largely attributed to continued operational disruptions following Typhoon Dolphin—the third and most powerful tropical storm to strike China in the past five weeks. Port congestion has significantly impacted turnaround times; notably, average vessel waiting times at Jawaharlal Nehru Port have climbed to 24 hours, up from 14 hours the previous week.
Geopolitical factors continue to compound these operational challenges. Heightened security concerns stemming from renewed US–Iran hostilities and recent vessel attacks have introduced a layer of volatility to market sentiment. As these tensions persist, industry analysts warn that further regional escalation could lead to additional disruptions and sustained upward pressure on freight rates.
The impact of these factors is most visible across major intra-Asian trade routes:
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Shanghai–Jawaharlal Nehru Port: Rates jumped 26% to $2,970 per 40ft container.
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Shanghai–Jebel Ali: Rates increased by 6% to $7,434 per 40ft container.
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Shanghai–Singapore: Rates rose 15% to $1,256 per 40ft container.
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Shanghai–Laem Chabang: Rates saw a 13% increase to $804 per 40ft container.
While rates on some routes, such as Ho Chi Minh City to Shanghai, saw a slight decline, the broader market remains elevated due to persistent equipment shortages and capacity constraints.
Despite current upward pressure, the market is preparing for capacity adjustments. On August 23, Evergreen Marine is set to launch its new SI8 service. Conducted through a strategic slot arrangement with Interasia Lines, Wan Hai, and KMTC, this four-week service will utilize four vessels (1,700–3,000 TEU) to connect key hubs, including Jakarta, Surabaya, Singapore, Port Klang, Tuticorin, and Jawaharlal Nehru Port.
While Drewry anticipates that continued congestion and equipment shortages may drive further short-term rate increases, the introduction of new capacity and evolving market conditions are expected to facilitate market stabilization in the coming weeks.
