Freight rates between Asia and Europe drop by up to 3% while intra-Asian tariffs reach a three-year high

Congestion continues to affect operations at Asian ports. In Shanghai, waiting time has reached 96 hours, compared to the 35 hours recorded the previous week.

In the Trans-Pacific, there have also been decreases in some connections. Rates from Shanghai to New York have fallen by 2% to $9,333 per 40-foot container, while freight rates between Shanghai and Los Angeles have remained unchanged at $6,818.

Drewry considers that the East-West market continues to be conditioned by various geopolitical and operational factors. Among them, it cites the situation in the Strait of Hormuz, changes in routes through the Suez Canal, congestion in Asian ports, low water levels in the Rhine, and the anticipated capacity reduction in the Panama Canal starting in September due to drought.

Against the behavior of the main East-West routes, the intra-Asian market has recorded its fourth consecutive week of growth. Drewry's Intra-Asia Container Index (IACI) has increased by 10% to reach $1,199 per 40-foot container, its highest level in the last three years.

The consultancy relates this increase to the disruptions caused by the situation in the Middle East and the weather-related issues and congestion affecting different ports in China.

Rates from China to Southeast Asia and South Asia have recorded some of the highest increases of the week. Port operations continue to be affected following the passage of Typhoon Dolphin, described by Drewry as the third and most intense tropical storm to hit China in the last six weeks.

The situation is compounded by the forecast arrival of Typhoon Saudel, which could affect the coastal areas of Ningbo, Shanghai, and Fujian.

In this context, the spot freight between Shanghai and Laem Chabang has increased by 27%, reaching $1,024 per 40-foot container. The Shanghai-Manila connection has experienced a 24% rise to $691.

The situation in the Middle East is also having effects on traffic in South Asia. Drewry notes that ship and cargo diversions have increased congestion at Jawaharlal Nehru port. The average waiting time for ships reached 36 hours during week 34, compared to 28 hours the previous week.

Rates between Shanghai and Jawaharlal Nehru have risen by 20% to settle at $3,568 per 40-foot container.

The behavior has been different in other connections within Asia. Freight rates from Busan to Shanghai have grown by 10% to $108 per 40-foot container, while rates between Ho Chi Minh and Shanghai have decreased by 6% to $60.

The market also remains conditioned by fuel costs. Drewry places the price of VLSFO in Rotterdam at $661 per ton during August and relates the evolution of freight rates to energy costs and the existing uncertainty in the Middle East.

The consultancy's forecasts vary by market. For intra-Asian routes affected by weather disruptions and port congestion, Drewry expects new increases in certain traffic over the next few weeks, while stabilization of rates is anticipated in other regional connections.

In East-West routes, the consultancy predicts relatively stable behavior in the short term, although it maintains uncertainty due to the operational and geopolitical factors affecting major international maritime connections.