Intra-Asia Freight Hits Sixth Straight Weekly Record: Southeast Asia Space Tightens and the Early-Booking Window Is Closing
Drewry's Intra-Asia Container Index (IACI) reached USD 1,518 per 40-foot container in its 5 October update, rising another 2% week-on-week and setting a new all-time high for the sixth consecutive week. The index is now up 212% compared with the same period last year. This rally is not isolated to a single lane; it is spreading across major corridors from China into Southeast Asia, South Asia and key transshipment hubs.
At the route level, spot rates from Shanghai to Ho Chi Minh City jumped 7% to USD 1,377 per 40-foot box, while Shanghai to Manila rose 7% to USD 1,062. Even transshipment ports saw upward pressure: Singapore and Tanjung Pelepas each climbed 4%, reaching USD 2,073 and USD 2,056 respectively. In the prior week, Shanghai to Laem Chabang surged 22% to USD 1,609. While North Asia lanes remained broadly stable, the supply-demand balance on South China to Southeast Asia services has clearly tilted in carriers' favour.
Three forces are driving the sustained climb.
First, port congestion continues to eat into effective capacity. Drewry data show that average vessel waiting time at Shanghai reached 82 hours in Week 39, with Ningbo at 56 hours. On-time performance has deteriorated to 21% at Shanghai and 34.6% at Ningbo. Longer port stays slow vessel rotations, meaning nominal fleet capacity cannot be converted into bookable slots.
Second, the aftermath of typhoons and the Golden Week holiday is still rippling through the network. Pre-holiday cargo rushes, holiday blank sailings and typhoon-related port omissions have left the first half of October with a lag between capacity recovery and demand rebound. While carriers blanked roughly 13% of Asia-Europe and transpacific sailings around Golden Week, on intra-Asia routes blank sailings and port omissions are being used more aggressively to tighten supply.
Third, bunker costs are feeding through into quotations. Brent crude has held above USD 100 per barrel since early September, and CMA CGM introduced an emergency bunker surcharge of USD 75 per TEU on all intra-regional lanes effective 1 October. This surcharge is typically excluded from index readings, so shippers often find the final invoice higher than the headline index figure.
For A-Choice, Southeast Asia is a core corridor, and major cargo categories such as non-ferrous metals, logs and timber, project cargo and agricultural fertilizers account for a significant share of intra-Asia volume. In the current environment, we recommend four adjustments for shippers.
One: book earlier. Space on intra-Asia services is now as tight as on deep-sea mainlines. We advise submitting bookings at least two to three weeks in advance, rather than chasing last-minute slots one week before departure. For seasonal bulk shipments such as fertilizers and timber, an even longer lead time can materially reduce the risk of rollovers.
Two: break down the rate comparison. Index readings reflect base ocean freight only; surcharge structures vary widely by carrier. When booking, separate base freight, bunker adjustment, terminal handling and documentation fees, then compare total delivered costs across carriers and sailings rather than relying on a single headline number.
Three: prioritise direct services and minimise transshipment exposure. Major hubs such as Singapore and Tanjung Pelepas are also congested, and connection reliability is falling. If cargo volume allows, choose direct sailings; if transshipment is unavoidable, include alternative-hub clauses and delay-liability terms in the contract.
Four: watch for new capacity. OOCL plans to launch its China-Cambodia-Thailand service CCT4 on 23 October, calling Nansha, Shekou, Sihanoukville and Songkhla. This new string will add direct South China to Indochina capacity and is particularly relevant for construction equipment and building materials. Building a relationship at launch often secures preferential space allocation.
Looking ahead through Q4, A-Choice believes intra-Asia rates are unlikely to fall sharply until port congestion eases. However, as newbuilds and additional services enter the market, supply-demand tensions on some lanes may improve marginally from November onward. For shippers, the current window is not about waiting for rates to drop; it is about controlling total logistics costs through early planning and granular rate comparison in a high-freight environment.
