The container transport index in Asia (IACI) increased by $46 to $1504 for each 40-foot container. This increase indicates relative stability in the maritime transport market in Asia, influenced by reduced traffic and congestion at major ports in China and Singapore.
Rate Status Analysis
Last week, spot rates from mainland China to Northeast, Southeast, and South Asia remained largely stable. Major ports, including the major ports of China and the Singapore transit hub, have managed to handle congestion, leading to slight reductions in rates. For example, the transport rate from Shanghai to Singapore decreased by 3% to $1889 for each 40-foot container, while rates to Tanjung Pelepas decreased by 2% to $2053 for each 40-foot container.
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Challenges and Forecasts
However, some smaller ports are still struggling with congestion, and rates from Shanghai to Ho Chi Minh City, Jakarta, and Laem Chabang remain high and are increasing. In particular, Jakarta is under pressure due to its operational limitations in dealing with vessel congestion. The average waiting time for vessels at Ho Chi Minh port has increased from 8 hours to 22 hours in the past two weeks.
The unfavorable situation in the Middle East has kept transport rates from Shanghai to Jebel Ali at a high level of $8584 for each 40-foot container. Rates are expected to remain generally stable in the coming weeks, although the addition of new capacities could increase supply and threaten market stability.
Overall, spot rates on trade routes across Southeast and Northeast Asia have remained largely stable, except for routes leading to Jakarta and Shanghai, where rates from Jakarta to Shanghai have increased by 9% to $81 for each 40-foot container. Additionally, Pacific International Lines (PIL) will soon launch its new JKS service on November 5 to strengthen its network in the straits and Indonesia.
Geopolitical and weather disruptions remain key risks for intra-Asian trade, as port closures and delays in vessel arrivals can tighten capacity and increase price pressure. The Champi storm, which hit East Asia on October 23, has disrupted vessel movements and caused transportation delays.
The intra-Asian container index is currently about 200% higher than a year ago and is expected to continue facing challenges with ongoing price volatility and critical conditions in some ports.
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