Intra-Asia container rates reach another record high before Golden Week
Drewry's Intra-Asia Container Index rose 2% to $1,518 per 40ft, led by lanes from China to Southeast Asia and the transhipment hubs, while congestion at Shanghai and Ningbo continued.
- Drewry's Intra-Asia Container Index (IACI) rose 2% to $1,518 per 40ft container on 1 October, a new record high.
- Rates from Shanghai to Ho Chi Minh City and Manila each rose 7%, and rates to the Singapore and Tanjung Pelepas hubs each rose 4%.
- Ships are bunching at Shanghai and Ningbo, adding to delays. Drewry expects rates to level off after Golden Week.
Container spot rates within Asia are still rising. Drewry's Intra-Asia Container Index rose 2% to $1,518 per 40ft container in its 1 October assessment, another record high. Drewry put the increase down to strong cargo demand ahead of Golden Week, tighter effective capacity and carriers reworking their networks after operational disruptions.
Southeast Asia and transhipment hubs lead the gains
The biggest increases were on lanes from China to Southeast and South Asia. Shanghai–Ho Chi Minh City rose 7% to $1,377 per 40ft and Shanghai–Manila rose 7% to $1,062. Rates to the main transhipment hubs also went up. Shanghai–Singapore rose 4% to $2,073 and Shanghai–Tanjung Pelepas rose 4% to $2,056. Rates to North Asian ports such as Busan, Kaohsiung and Yokohama were mostly flat. Shanghai–Jebel Ali stayed high at $8,662 per 40ft because of the worsening situation in the Middle East.
| Lane (40ft) | Rate (USD), 1 Oct | Weekly change |
|---|---|---|
| IACI composite | 1,518 | +2% |
| Shanghai–Ho Chi Minh City | 1,377 | +7% |
| Shanghai–Manila | 1,062 | +7% |
| Shanghai–Singapore | 2,073 | +4% |
| Shanghai–Tanjung Pelepas | 2,056 | +4% |
| Busan–Shanghai | 146 | +7% |
| Yokohama–Shanghai | 116 | +5% |
Congestion at Chinese gateways
Ships are arriving in bunches at Shanghai and Ningbo, which is disrupting schedules. In week 39, the average waiting time was 82 hours at Shanghai and 56 hours at Ningbo, according to Drewry. Drewry expects the drop in volumes during Golden Week to help clear the backlog, with rates settling over the coming weeks and some Southeast Asia lanes getting cheaper.
New capacity is also coming. Drewry reports that OOCL will start its China–Cambodia–Thailand service (CCT4) on 23 October, calling at Nansha, Shekou, Sihanoukville and Songkhla.
What this means for shippers
- Delays at Shanghai and Ningbo and higher rates to Singapore and Tanjung Pelepas can affect Europe-bound cargo that is relayed through these hubs. Allow extra time for connections.
- Shippers moving cargo from China to Southeast Asia may see better rates after Golden Week, according to Drewry. Short-term bookings could benefit.
- Expect rates for Gulf cargo, such as Shanghai–Jebel Ali, to stay high while the Middle East situation remains unsettled.