Drewry's Intra-Asia Container Index (IACI), the benchmark widely referenced by procurement teams, rose 9% this week to $1,312 per 40ft container. It was the fifth consecutive weekly increase in the index, as typhoon-related disruptions tightened available capacity. Intra-Asia is one of the world's busiest regional shipping markets, serving extensive manufacturing supply chains linking China, Japan, Korea and Southeast Asia, so even short-lived capacity squeezes there ripple quickly through shippers' landed costs and delivery schedules.

Spot rates from China to Southeast Asia and South Asia strengthened further this week as Typhoon Saudel disrupted port operations. Shanghai and Ningbo ports were closed during 26–28 August, adding to elevated congestion following a series of recent typhoons, including Bavi, Noul, Dolphin and Narra. In Week 35, average vessel waiting times reached 98 hours in Shanghai and 54 hours in Ningbo. China's Transport Ministry warned on 31 August that further adverse weather could disrupt transport and inland supply chains — a recurring pattern, as the late-summer typhoon season regularly pressures East Asian port throughput between July and October.

Ongoing Middle East tensions also supported rates, with Shanghai–Jebel Ali rising 6% to $8,254 per 40ft container. Meanwhile, rates from Shanghai to Busan rose 30% to $925 per 40ft container, and those from Shanghai to Laem Chabang increased 28% to $1,310 per 40ft container. Shippers also faced disruptions and delays at transhipment hubs such as Busan, Hong Kong and Singapore. Drewry expects freight rates to rise further in the coming weeks, supported by ongoing weather-related disruptions and persistent port congestion.

Spot rates, which typically remain stable on trade routes across Southeast and Northeast Asia, showed mixed movements this week. Rates from Busan to Shanghai increased 6% to $114 per 40ft container, while rates on Laem Chabang–Shanghai fell 17% to $194 per 40ft container.

Meanwhile, Japanese operator Kambara Kisen will revise its NK1 service from 22 September, replacing Otaru with Sapporo. The revised three-week rotation will continue to deploy three 1,091 teu vessels, calling at Dalian, Qingdao, Shanghai, Toyama, Niigata, Sapporo and Kanazawa before returning to Dalian. Drewry expects freight rates to stabilise in the coming weeks.

The intra-Asia container freight market reached a new high this week, supported by weather-related disruptions at major Asian ports. Elevated bunker costs and ongoing US–Iran tensions are adding further upward pressure on rates, with Rotterdam VLSFO prices averaging $661 per tonne in August. For shippers and procurement teams, the combination of surging spot rates and congested transhipment hubs points to the coming weeks' index readings and post-typhoon port recovery as key indicators of whether the rally persists or unwinds.

Source: Drewry