The container index in Asia (IACI) increased to $1402 for each 40-foot container, equivalent to a 6% increase compared to last week. This increase marks the fourth consecutive week that this index has reached its highest level, reflecting the ongoing impacts of geopolitical disruptions and storms on supply chains and available capacities.
Increase in Shipping Rates
Spot rates from China to Southeast and South Asia have strengthened this week, especially ahead of China's Golden Week holiday. Rates from Shanghai to Laem Chabang and Ho Chi Minh City have increased by 15% to $1324 and $1161 respectively for each 40-foot container. Additionally, the situation in the Middle East continues to worsen, with rates from Shanghai to Jebel Ali increasing by 13% to $8509 for each 40-foot container.
Read more: The upward trend in gold prices influenced by falling oil prices
Impact of Storms and Port Traffic
Disruptions caused by storms on shipping schedules and increased traffic at Chinese ports continue. In week 37, the average waiting time for ships in Shanghai reached 78 hours, an increase of 13 hours from the previous week. In Ningbo, this time also reached 77 hours, which is 11 hours more than last week.
The Beibu Gulf Port Group has completed a trial river-sea voyage through the Pingluo Canal, reducing transit time to two hours. This canal will enhance trade between China and its largest trading partner, Southeast Asia, and increase container flow to Vietnam, Singapore, Malaysia, and Indonesia.
Darwi predicts that shipping rates will stabilize in the coming weeks. Spot rates on trade routes across Southeast and Northeast Asia have remained largely stable, except for routes starting from Busan and Yokohama. Rates from Busan to Shanghai increased by 8% to $128, and from Yokohama to Shanghai increased by 7% to $110 for each 40-foot container.
CMA CGM has restructured its dedicated services on the China-Middle East routes CIMEX1 and CIMEX3 since mid-September to strengthen its intra-Asia network. Changes in these services will result in an increase in the turnaround time for CIMEX3 from seven to eight weeks.
Read more: Union strikes in shipbuilding in South Korea intensify ahead of Chuseok celebrations · Kalmar continues its collaboration with ICTSI with an order of 12 hybrid straddle carriers
