Drewry’s Intra-Asia Container Index (IACI), the benchmark widely referenced by global procurement teams, strengthened by 1% this week to $970 per 40ft container (FEU). The slight uptick marks the end of a six-week downward trend in intra-Asia spot rates, driven primarily by ongoing Middle East tensions, rising bunker fuel costs, and severe weather disruptions across major Asian hubs.
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South Asia & Gulf Routes Surge: Renewed hostilities and security concerns in the Strait of Hormuz led to notable rate spikes. Freight rates on the Shanghai to Jawaharlal Nehru Port route rose 8% to $1,767 per FEU, while rates from Shanghai to Jebel Ali jumped another 7% to reach $7,143 per FEU.
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Southeast Asia & Taiwan See Declines: Easing port congestion led to rate relief on select lanes. Shanghai to Laem Chabang spot rates plunged 23% to $687 per FEU, supported by average vessel waiting times dropping from 15.33 hours to 11.6 hours week-on-week (WoW) in Week 31. Shanghai to Kaohsiung dropped 7% to $1,333 per FEU as waiting times were halved from 14.78 to 7.32 hours.
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Stable Intra-Regional Routes: Spot rates on key routes out of South and Southeast Asia into East Asia remained flat, with Ho Chi Minh City to Shanghai holding at $65 per FEU and Jawaharlal Nehru Port to Shanghai holding at $117 per FEU.
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Emergency Fuel Surcharges: Higher global fuel prices triggered by Strait of Hormuz hostilities have prompted ocean carriers to introduce emergency bunker surcharges ranging from $38 to $75 per TEU on short-haul regional routes effective this week.
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Typhoon & Port Delays: Severe weather caused by Typhoons Noul and Bavi continues to impact operations along China’s eastern and southern coastlines. Average vessel waiting times at the Port of Shanghai climbed from 77 hours to 94.8 hours WoW in Week 31.
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Carrier Network Adjustments: Pacific International Lines (PIL) announced plans to strengthen its Southeast Asia network in early September by joining OOCL and Gold Star Line (GSL) on the Indonesia Thailand Straits (ITS) service, replacing exiting partner Yang Ming. The restructured “butterfly” service will bolster feeder connectivity and provide weekly links between key gateways in Thailand and Indonesia.
Although the post-peak season market naturally leans toward softening demand, geopolitical instability in the Middle East and climbing operating costs continue to put a floor under rate declines. Drewry forecasts intra-Asia freight rates to remain largely stable over the coming weeks, though any further escalation in regional conflict or extended weather-related port delays could exert renewed upward pressure on shipping costs.
