Drewry's Intra-Asia Container Index (IACI) remained stable at $956 per 40ft container in Week 31, bringing a five-week decline to a halt. The benchmark, widely referenced by procurement teams negotiating intra-Asia contracts, has been under pressure as peak-season demand faded across the region, but geopolitical uncertainty in the Middle East provided a counterbalancing lift on select routes. The index now sits roughly 14% below its late-June peak of $1,114 per 40ft container.

Middle East Crisis Lifts Shanghai–Jebel Ali Rates

Ongoing instability in the Middle East continued to weigh on market sentiment. On the Shanghai–Jebel Ali route — linking China's manufacturing heartland to the Gulf's largest container gateway — spot rates rose 6% in Week 31, making it one of the few lanes to register gains. The broader Strait of Hormuz region remains volatile amid renewed US–Iran hostilities and reports of further shipping disruptions. The sinking of the 43,000-dwt bulk carrier Luni and severe damage to the 7,000-teu container ship GFS Galaxy have heightened security concerns, keeping market participants cautious.

China–Southeast Asia and South Asia Lanes Soften

Spot rates on trade lanes connecting China with Southeast Asia and South Asia fell again as post-peak-season demand weakened. The declines reflect softer cargo volumes after the pre-holiday shipment rush that typically tapers by mid-summer. Key Week 31 movements included:

• Shanghai–Jakarta: down 5% to $1,405 per 40ft container
• Shanghai–Laem Chabang: down 4% to $890 per 40ft container
• Shanghai–Manila: down 3% to $447 per 40ft container

Fuel Costs Surge on Hormuz Escalation

The renewed escalation of hostilities in the Strait of Hormuz reversed a recent easing in fuel prices. WTI crude oil prices climbed 24% month-over-month to $84 per barrel in July. In response, carriers plan to implement emergency fuel surcharges ranging from $38 to $75 per TEU on short-haul regional trade lanes beginning the first week of August. Shipping lines are also introducing another round of bunker adjustment surcharges. For shippers, these surcharges add to landed costs even as base spot rates ease, complicating budgeting on lanes where both effects are in play.

Typhoons Disrupt Chinese Ports

The combined impact of Typhoon Noul and Typhoon Bavi continued to disrupt operations at ports across southern and eastern China, resulting in persistent vessel delays. At the Port of Shanghai, average vessel waiting time surged to 77 hours, up sharply from 39 hours in Week 30.

Reverse-Direction Lanes Hold Steady

On trade routes from South Asia and Southeast Asia back to China, spot rates remained stable during the week. Rates from Ho Chi Minh City to Shanghai held at $65 per 40ft container, while rates from Jawaharlal Nehru Port (JNPT) to Shanghai remained at $117 per 40ft container. Monsoon storms along India's west coast have exacerbated supply chain disruptions at JNPT, leading to widespread berth schedule disruptions and vessel backlogs.

COSCO Joins Yang Ming's JTS Service

COSCO expanded its Northeast Asia network by joining Yang Ming's JTS service as a vessel provider. Vessel-sharing arrangements of this kind allow carriers to maintain service frequency and broaden port coverage without deploying additional tonnage individually. The three-week service rotation strengthens connections among Japan, Taiwan, and China, with port calls at Nagoya, Tokyo, Yokohama, Keelung, Kaohsiung, Chiwan, and Xiamen.

Outlook

The intra-Asia container freight market is showing signs of softening as the peak season has ended. The IACI has been declining since peaking at $1,114 per 40ft container in the third week of June. Drewry expects freight rates to remain broadly stable in the coming weeks, as rising fuel costs are likely to be offset by weakening demand. However, any further escalation in regional tensions could disrupt shipping operations and potentially halt the decline in freight rates.

About the Intra-Asia Container Index

Drewry's Intra-Asia Container Index (IACI) reports actual spot container freight rates for major intra-Asia trade routes. Updated weekly since 2 January 2026, the index consists of 18 route-specific indices and a composite index, all reported in USD per 40ft container. Covered routes include: Busan–Shanghai, Ho Chi Minh City–Shanghai, Jakarta–Shanghai, Jawaharlal Nehru Port–Shanghai, Kaohsiung–Shanghai, Laem Chabang–Shanghai, Shanghai–Busan, Shanghai–Ho Chi Minh City, Shanghai–Jakarta, Shanghai–Jawaharlal Nehru Port, Shanghai–Jebel Ali, Shanghai–Kaohsiung, Shanghai–Laem Chabang, Shanghai–Manila, Shanghai–Singapore, Shanghai–Tanjung Pelepas, Shanghai–Yokohama, and Yokohama–Shanghai.

Source: Drewry, via Hellenic Shipping News, 3 August 2026.