Intra-Asia Container Freight Rates Rebound Under Typhoon Impact
By Cadys Wang Photo：CANVA
The impact of Super Typhoon Kong-Rey led to the closure of financial markets, cancellation of hundreds of flights, and reduced rail services. According to government reports, Typhoon Kong-Rey left nearly 500,000 households without power, with strong winds and heavy rainfall affecting almost the entire island.
Although Taiwan's main island was no longer within Kong-Rey's storm circle this morning, land, sea, and air transportation continued to be affected. Over 20 sections of provincial roads were blocked, 117 maritime routes were suspended, 135 domestic flights were canceled, and 57 international and cross-strait flights were also canceled.
The recent frequent typhoons have not only severely affected southern and eastern China but have also disrupted port operations in Vietnam, South Korea, and Japan, causing severe shipping delays. Many freight agents point out that September saw a surge in intra-Asia air freight demand, cargo backlogs, and increased demand during India's festival season, all contributing to an upward trend in freight rates.
Freight agents report that some shipping companies have reallocated capacity on China-India trade and Middle East routes, exacerbating capacity constraints in India and the Asia-Pacific region.
Prices may rise further if the General Rate Increase (GRI) and other surcharges are successfully implemented. For example, CNC Line plans to increase freight rates by $100 per TEU for goods bound for Southeast Asia, Japan, Korea, and Bangladesh starting October 28; Maersk plans to impose peak season surcharges ranging from $1,000 for a twenty-foot container to $1,500 for a forty-foot container on shipments from northern Asian regions, including China, Vietnam, Singapore, and the Philippines, to South Asia beginning November 4.
Consequently, the expected freight rate increases are likely to put greater pressure on importers, exporters, and logistics companies, especially as transport demand from Asia to South Asia continues to rise. Freight agents note that the current market conditions reflect a persistent demand for space exceeding supply, keeping freight prices high. With the year-end holiday peak season approaching, coupled with transport delays caused by typhoon impacts, logistics companies may face even more severe challenges, while shippers should prepare for continued high freight rates.
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