If you've been shipping cargo within Asia lately, you've probably noticed something alarming: rates just keep going up. And up. And up.
It's not your imagination. The Drewry Intra-Asia Container Index-the benchmark that procurement teams across the region watch religiously-rose 10% last week to hit $1,199 per 40ft container. That's the highest level in three years. And the index is now sitting 83% above where it was before the Iran conflict started.
So what's driving this? Two words: war and weather.
The Middle East conflict is strangling capacity
The ongoing unrest in the Middle East has fundamentally reshaped how container shipping works in Asia. Capacity on routes from Greater China to the Middle East has plummeted by nearly 90%. Carriers have pulled vessels out of the Gulf, redeployed them elsewhere, and left a gaping hole in regional networks.
And it's not just about fewer ships. The conflict has pushed up fuel costs across the board-VLSFO bunker prices at Rotterdam remained elevated at $661 per tonne in August. That cost gets passed on, one way or another.
Meanwhile, the Strait of Hormuz remains effectively closed, constraining access to the Gulf and forcing cargo to be rerouted around the Cape of Good Hope. That adds days-sometimes weeks-to transit times and eats up vessel capacity that could otherwise be serving intra-Asia routes.
Then the typhoons hit
Just when the market was already tight, Mother Nature decided to pile on.
Typhoon Dolphin-the third and strongest tropical storm to hit China in just five weeks-struck the eastern coast on 9 August. It forced terminals at Shanghai and Ningbo to suspend operations. The result? More than 2.4 million TEU of containership capacity stranded outside Chinese ports. Shanghai saw average waiting times of 87 hours; Ningbo, 36 hours.
And it didn't stop there. Typhoon Narra hit southern China shortly after, compounding the backlogs. Now Typhoon Saudel is forecast to make landfall along the coast from Zhejiang to Fujian-home to Ningbo and Xiamen ports-adding yet another layer of disruption.
Global port congestion has now reached a new high, with more than 4.3 million TEU waiting to berth-surpassing the peak recorded during Covid in 2022. North Asian ports alone account for roughly half of that congestion, with around 2.2 million TEU tied up.
What this means for your supply chain
Here's the reality: when both war and weather are squeezing capacity, everyone feels it.
Spot rates on key intra-Asia lanes have surged. The Shanghai–Jawaharlal Nehru route jumped 33% to $2,353 per 40ft container. Shanghai–Laem Chabang surged 27% to $1,024. Shanghai–Manila rose 24%. Even return routes from Southeast Asia to China-which usually stay stable-have seen notable increases, with Ho Chi Minh City–Shanghai up 14%.
And the disruptions aren't just about rates. Schedule reliability has collapsed. Shanghai's reliability dropped to just 21% in July. Ningbo managed 34.6%. When vessels are delayed by days or weeks, your cargo sits. Your inventory gets held up. Your customers get frustrated.
This is where having the right partner actually matters
Navigating a market this chaotic requires more than just a booking platform and a prayer. It requires relationships, real-time intelligence, and a partner who understands that the published numbers don't always tell the full story.
At Xiamen AE Global, we've been moving freight through exactly this kind of complexity since 2018. We're a government-licensed company with IATA, FIATA, FMC, and NVOCC credentials-which means when the market gets squeezed, we have the global network and the carrier relationships to secure space for our clients, even when everyone else is scrambling.
1. Real relationships, real options
With over 100 overseas agents worldwide, we don't just watch the congestion reports from a distance. We work directly with our partners on the ground to understand what's really happening at each port. When Typhoon Dolphin shut down Shanghai terminals, we weren't reading about it in the news-we were already talking to our partners about alternative gateways and routing options.
2. Local knowledge where it counts
Based in Xiamen-one of China's busiest port cities and right in the path of the latest typhoon season-we combine global reach with the kind of local knowledge that only comes from being on the ground. We've moved over 12,000 TEUs in a single year with a 98.6% on-time delivery rate for our SME clients. That's not luck-it's relentless execution and a network that doesn't fall apart when things get complicated.
3. Technology that cuts through the noise
We've invested heavily in technology that gives our clients real visibility-not just a tracking number, but actual insight into what's happening with capacity, schedules, and alternatives. When disruptions hit, we don't wait for you to find out the hard way. We alert you immediately and present options.
The bottom line
War in the Middle East is strangling vessel capacity. Typhoons are shutting down China's biggest ports. Rates are hitting three-year highs. And the situation isn't going to get better anytime soon-with another cyclone forecast to hit the region this week.
For shippers, that means one thing: you need a logistics partner who understands the ground reality, has the relationships to secure alternatives, and can pivot fast when things go sideways.
At Xiamen AE Global, we don't just move boxes. We help our clients navigate complexity-whether that's finding an alternative route around a congested port, securing space when capacity is tight, or simply making sure your cargo gets where it needs to go, on time and on budget.
Because when war and weather are both working against you, you don't need a spectator. You need a partner who knows how to get your cargo moving.
Ready to work with a logistics partner who actually understands the market? Contact Xiamen AE Global today-and let's keep your supply chain moving, no matter what comes next.
