The Intra-Asia Container Index (IACI) rose by $6 to $1459 for each 40-foot container. This slight increase indicates relative stability in the container shipping market, particularly observed in most routes. Except for a few exceptions, shipping companies have extended rates for the first two weeks of November.
Status of Rates and Waiting Times for Ships
Spot rates from mainland China to Northeast, Southeast, and South Asia remained largely stable this week, except for the Shanghai–Busan and Shanghai–Kaohsiung routes. Rates from Shanghai to Busan increased by 14% to $1135 for each 40-foot container, while rates to Kaohsiung increased by 8% to $1313. In week 42, waiting times for ships in Busan and Singapore increased from 23 to 31 hours and from 10 to 12 hours, respectively.
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However, the Golden Week holidays provided a good opportunity for ports to reduce cargo backlogs and improve schedule reliability. Waiting times for ships in week 42 in Shanghai, Ningbo, and Tanjung Pelepas decreased from 58 to 38 hours, from 40 to 34 hours, and from 34 to 21 hours, respectively. The variable situation in the Middle East has kept Shanghai–Jebel Ali rates at $8451 for each 40-foot container.
Rate Forecasts and Economic Impacts
Drewry expects that rates will remain generally stable in the coming weeks, but further increases in capacity could create upward pressure on supply and threaten market stability. Spot rates on trade routes between Southeast and Northeast Asia have remained largely stable, except for the Busan and Ho Chi Minh origin routes. Rates from Busan to Shanghai increased by 11% to $176 for each 40-foot container, while rates from Ho Chi Minh to Shanghai decreased by 6% to $44.
Pacific International Lines (PIL) will launch its new JKS service on November 5 to strengthen its network in the Indonesian straits. This bi-weekly service will utilize two vessels with a capacity of 1900 to 2600 TEU and will stop at the ports of Singapore, Laem Chabang, and Jakarta. Drewry predicts that shipping rates will stabilize in the coming weeks.
The container shipping market in Asia has been remarkably resilient this year, with this index increasing by 188% compared to last year. High fuel costs and ongoing tensions between the United States and Iran continue to drive up rates, with Brent crude prices remaining around $100 per barrel since early October, adding to companies' operational costs. Meanwhile, the decrease in cargo during the Golden Week holidays has helped reduce backlogs at key ports and improve schedule reliability.
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