Intra-Asian trade lanes are suffering from 11% lower capacity than 2020 as carriers move ships to more profitable routes to Europe and North America.
As a result shippers are seeing rates rise significantly, which in in turn increasing production costs.
Port congestion and container shortages are also disrupting intra-Asian shipping just as they are on longer East-West routes. One industry insider said that feeder services are currently “unstable, with frequent delays”.
There are also high levels of road freight congestion at the border between Vietnam and China, where up to 6,000 trucks have faced delays of up to 30 days. Fortunately, a new railway between China and Laos is now helping to relieve some of the pressure there.