Drewry's IACI Index Slips to $1,478 as Asian Congestion Eases

Drewry's Intra-Asia Container Index (IACI) fell $26 on November 5, settling at $1,478 per forty-foot container (FEU). The decline is explained by reduced congestion at North Asian terminals, although firmness persisted at Southeast Asian transshipment hubs.

The moderation reflects a gradual improvement in operating conditions at major mainland Chinese ports, following weeks of disruptions caused by typhoons. Vessel waiting times at Qingdao fell from 35 to 23 hours in week 44, while at Shanghai waiting times dropped to 35 hours. This improved fluidity pushed down rates on the Shanghai-Jakarta route, which fell 8% to $2,538 per FEU, and on the Shanghai-Busan route, which eased 2% to $1,132.

By contrast, congestion intensified at major regional transshipment hubs. Increased bottlenecks at the Port of Singapore pushed the Shanghai-Singapore rate up 9%, to $2,064 per FEU. At the same time, geopolitical tensions in the Middle East kept the Shanghai-Jebel Ali freight rate elevated at $8,199 per FEU, after the United States carried out new military operations against Qeshm Island, which continued to put pressure on bunker fuel costs.

Secondary links between Southeast and Northeast Asia showed mixed performance: the Jakarta-Shanghai route rose 11% to $90 per FEU, while the route between Jawaharlal Nehru Port (JNPT) and Shanghai fell 6%, to $79. Against this backdrop, carrier OOCL announced the launch, on November 22, of its CIS4 service, connecting Qingdao, Shanghai and Nansha with Jakarta, Surabaya and Singapore.

Despite the weekly decline, the overall index remains 135% above year-ago levels. Drewry expects rates to behave relatively stable in the coming weeks, although it warns that persistently strong demand continues to attract new competitors and is encouraging the launch of additional services, which, together with potential weather-related disruptions, will keep volatility elevated in the regional shipping market.