Drewry's Intra-Asia Container Index (IACI) rose 10% this week to $1,199 per 40ft container, marking its fourth consecutive weekly increase and its highest level in three years.

Middle East unrest continued to tighten the market, while poor weather caused further congestion across China, with freight rates rising on most trade lanes. The index is expected to climb further, with a new cyclone forecast to impact the region later this week.

Source: Drewry Intra-Asia Container Index, Drewry Supply Chain Advisors. Note: Freight rates exclude origin and destination terminal handling charges.

Four consecutive weeks of increases push the IACI to a three-year high

Drewry's Intra-Asia Container Index (IACI), the benchmark widely referenced by procurement teams, rose 10% this week to $1,199 per 40ft container. The unrest in the Middle East continued to tighten the market, while poor weather caused further congestion across China. The index reached its highest level in three years and is expected to climb further, with a new cyclone forecast to impact the region later this week.

Spot rates on trade lanes from China to Southeast Asia and South Asia strengthened further this week as port operations remained disrupted, following Typhoon Dolphin, the third and strongest tropical storm to hit China in the past six weeks. Typhoon Saudel is forecast to hit later this week and could potentially affect the coastal areas of Ningbo, Shanghai and Fujian.

Shanghai–Laem Chabang rates surged 27% to $1,024 per 40ft container, while Shanghai–Manila rates increased 24% to $691 per 40ft container. Meanwhile, the Middle East crisis added further pressure on South Asian ports, as vessel and cargo rerouting increased congestion at Jawaharlal Nehru Port. In Week 34, average vessel waiting times reached 36 hours, up from 28 hours in Week 33. Rates from Shanghai to Jawaharlal Nehru Port rose 20% to $3,568 per 40ft container.

Drewry expects freight rates to increase further in the coming weeks, supported by persistent weather-related disruptions and port congestion. For shippers, the pace of the rise matters because intra-Asia trades carry large volumes of intermediate goods and components feeding regional manufacturing supply chains, so rapid spot-rate movements can feed through to landed costs well before rates are reflected in longer-term contract discussions.

Mixed movements on Southeast and Northeast Asia routes

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 10% to $108 per 40ft container, while rates on Ho Chi Minh City–Shanghai fell 6% to $60 per 40ft container.

Capacity additions are also expected to continue, with CULines set to launch its new JSM service on 5 September, providing direct connections between Japan and key markets across South Asia, the Middle East and the Red Sea. The JSM service will rotate through Tokyo, Yokohama, Nagoya, Kobe, Keelung, Hong Kong, West Port Klang and Singapore before returning to Tokyo, connecting major Japanese export hubs with key transhipment and gateway ports across East and Southeast Asia. On these routes, Drewry expects freight rates to stabilise in the coming weeks.

Fuel costs and Middle East uncertainty support rates

The intra-Asia container freight market reached a new high this week, following weather-related disruptions at major Asian ports. Rising fuel costs and ongoing uncertainty in the Middle East have also supported freight rates, with VLSFO bunker prices at Rotterdam remaining elevated at $661 per tonne in August. Meanwhile, unresolved US–Iran hostilities are keeping market sentiment cautious. A further escalation in regional tensions could disrupt shipping operations and boost fuel cost.

Beyond the immediate weather disruption, the two drivers now supporting rates — congestion and elevated bunker costs — are the same factors carriers typically cite when adjusting surcharges, which is a point of attention for shippers reviewing intra-Asia quotations in the weeks ahead.

About the index

Drewry's Intra-Asia Container Index (IACI) reports actual spot container freight rates for major intra-Asia trade routes. The Index, which will be updated weekly (from 02 Jan 26), consists of 18 route-specific indices representing individual shipping routes and a composite index. All indices are reported in USD per 40ft container.

Market freight rates are collected for the following routes:

• 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
• Yokohama–Shanghai

Source: Drewry