Drewry, one of the most reputable research institutions in maritime transport, announced that the Container Index in Asia (IACI) decreased by 3% last week, reaching $1453 for each 40-foot container. This decrease in freight rates is primarily due to the improvement in traffic conditions at the ports of Shanghai, Busan, and other destinations.
Analysis of Freight Rates
Freight rates specifically from Shanghai to Busan, Ho Chi Minh City, and Jawaharlal Nehru Port have decreased. For example, the freight rate from Shanghai to Jawaharlal Nehru Port decreased by 11% to $3370, and from Shanghai to Busan decreased by 8% to $1000 for each 40-foot container. Additionally, the freight rate from Shanghai to Singapore has also decreased by 7% to $1973.
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The improvement in traffic conditions at these ports has also led to a reduction in the average waiting time for ships, decreasing by 41 hours in the week. For instance, the waiting time for ships at Busan decreased from 26 to 23 hours, at Jawaharlal Nehru Port from 42 to 24 hours, and in Singapore from 50 to 34 hours.
Forecast of Future Rates
Despite political tensions in the Middle East keeping the freight rate from Shanghai to Jebel Ali at $8416 for each 40-foot container, Drewry expects that rates will generally remain stable in the coming weeks. At the same time, new services are expected to be added to the market. For example, OOCL is set to launch its new service under the name CCT4 starting October 23, 2026, which will connect Nansha and Shiko in South China to Sihanoukville in Cambodia and Songkhla in Thailand.
Currently, the container freight market in Asia is performing well despite existing challenges, with the index showing a 198% increase compared to last year. Given the high fuel costs and ongoing geopolitical tensions, rates are expected to remain under pressure.
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