Intra-Asian container shipping costs remain anchored at three times their pre-crisis baseline, driven by localized port bottlenecks in Southeast Asia and enduring Middle East security strains, according to data published by Drewry.
Earlier this week, maritime transport analytics firm Drewry released its Intra-Asia Container Index (IACI), pegging the average cost for a 40-foot container (FEU) at $1,504. This figure represents a modest 3.2% increase—or $46—over the preceding week. Yet it stands roughly 200% higher than figures recorded during the same period last year, underscoring persistent pricing pressure across regional trade lanes.
Diverging Fortunes at Major Asian Ports
The headline index masks a widening divergence between major hubs and secondary terminals. In larger Chinese and Southeast Asian transshipment centers, congestion has largely abated. The vital Shanghai-to-Singapore route saw rates retreat by 3% to $1,889 per FEU. Similarly, shipments moving from Shanghai to Malaysia’s Port Klang via Tanjung Pelepas dropped 2% to finish at $2,053.
Those downward adjustments reflect improved vessel handling and swift clearing of backlogs at primary ports. However, smaller regional destinations tell an entirely different story. Upward rate pressures continue to punish lanes connecting Shanghai to Ho Chi Minh City, Jakarta, and Laem Chabang.
Vessel bunching—the simultaneous arrival of delayed ships—has overwhelmed operational capacity at Jakarta’s port. Meanwhile, average waiting times for incoming vessels at Ho Chi Minh City stretched from eight hours to 22 hours over a recent two-week window during the 43rd week of the year.
Geopolitical Friction and Middle East Strains
Beyond regional port congestion, broader security anxieties continue to inflate shipping expenses. Cargo moving from Shanghai to Jebel Ali in the United Arab Emirates maintained an exceptionally high rate of $8,584 per FEU. Drewry analysts point to ongoing military tensions between the United States and Iran, alongside wider Middle East security disruptions, as primary drivers for these elevated costs.
At the same time, regional operators are actively adjusting capacity to capture elevated demand. Singapore-based Pacific International Lines (PIL) scheduled the launch of its new JKS service linking Singapore, Thailand’s Laem Chabang, and Indonesia’s Jakarta. Utilizing two vessels in the 1,900 to 2,600 TEU range on a fortnightly rotation, the new loop aims to reinforce regional connectivity. Whether incoming vessel supply from such new deployments will offset port congestion or apply further downward pressure on spot rates remains the central question for market watchers heading into the final stretch of the year.
| Trade Route / Index | Rate per FEU (USD) | Weekly Change | Key Operational Driver |
|---|---|---|---|
| Intra-Asia Composite Index (IACI) | $1,504 | +3.2% (+$46) | Persistent Southeast Asian port bottlenecks |
| Shanghai to Tanjung Pelepas | $2,053 | -2% | Easing congestion at major transshipment hubs |
| Shanghai to Singapore | $1,889 | -3% | Improved vessel turnaround times |
| Shanghai to Jebel Ali (UAE) | $8,584 | Unchanged High | Middle East security tensions and US-Iran friction |
Weather disruptions have compounded these logistical headaches. Typhoon Champi swept through East Asia earlier in October, forcing temporary suspensions and delays in vessel scheduling across several key operating zones. Combined with stubbornly high marine bunker fuel costs, these pressures leave regional freight rates vulnerable to sudden upward spikes.
South Korean logistics firms and manufacturers dependent on intra-Asian feeder networks are closely monitoring these shifting rate environments and schedule reliability, particularly across routes linking Busan to Chinese and Southeast Asian ports.
