The Container Index in Asia (IACI), measured by Drewry, reached $1518 per 40-foot container last week, representing a 2% increase compared to the previous week. This increase in the index marked the highest historical level for the sixth consecutive week. Several factors, including disruptions caused by storms and port congestion, led to capacity constraints and rising rates.
Impact of Operating Costs and Pre-Holiday Demand
Shipping companies employed various methods to manage capacity, including canceling trips and bypassing certain ports. Additionally, higher operating costs have put more pressure on rates. In particular, shipping rates from China to South and Southeast Asia strengthened this week, driven by strong pre-holiday demand and limited effective capacity. Rates from Shanghai to Southeast Asia, including Ho Chi Minh City and Manila, increased by 7% to $1377 and $1062 per 40-foot container, respectively.
Market Status and New Services
Rates to transshipment ports such as Singapore and Tanjung Pelepas also increased by 4%, reaching $2073 and $2056. In contrast, rates to North Asia, including Busan, Kaohsiung, and Yokohama, remained generally stable. Additionally, unfavorable conditions in the Middle East have driven shipping rates from Shanghai to Jebel Ali to $8662 per 40-foot container. The ports of Shanghai and Ningbo continue to face issues with vessel congestion and scheduling delays, with average waiting times reaching 82 hours and 56 hours in week 39.
Drewry forecasts that rates will stabilize in the coming weeks with a decrease in volume during the golden holidays, helping to reduce backlogs and facilitate rates on some Southeast Asian routes. Meanwhile, rates on trade routes across Southeast and Northeast Asia have remained generally stable, except for routes starting from Busan and Yokohama, where rates increased by 7% and 5%, respectively.
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