Drewry: Intra-Asia Container Index down 4% last week

LONDON: Drewry’s Intra-Asia Container Index (IACI) decreased 4% to $1,035 per 40ft container.

Freight rates declined, particularly on the Shanghai–Busan, Ho Chi Minh City, and Jawaharlal Nehru Port routes. This marks the second consecutive fall in the index, suggesting that the early peak-season volume surge is easing while rates on Middle East routes are stabilising. See detailed commentary below.

ACI eases, but still remains 88% above pre-conflict levels

• The Drewry Intra-Asia Container Index (IACI), the benchmark widely referenced by procurement teams, decreased 4% to $1,035 per 40ft container. Freight rates declined, particularly on the Shanghai–Busan, Ho Chi Minh City, and Jawaharlal Nehru Port routes. This marks the second consecutive fall in the index, suggesting that the early peak-season volume surge is easing while rates on Middle East routes are stabilising.
• Spot rates on trade lanes connecting China with Southeast Asia and South Asia fell again this week, indicating that the early peak-season surge is approaching its end and upward pressure on freight rates is easing. Rates from Shanghai to Jawaharlal Nehru Port slid 6% to $2,155 per 40ft container. Meanwhile, rates from Shanghai to Manila declined 3% to $555 per 40ft container, following a sharp 26% drop last week, as congestion at Manila port eased with average vessel waiting times falling by four hours WoW in Week 26. Moreover, rates from Shanghai to Laem Chabang also declined to $974 per 40ft container. Southeast Asia continues to strengthen its position as a key manufacturing and export hub amid ongoing US–China trade tensions, with Chinese companies expanding investments in the region to preserve access to global markets and mitigate tariff risks. Capacity additions also continue, with Taiwanese forwarder and ship manager TVL Marine re-entering the intra-Asia container shipping market, while MSC has expanded its South China–Central Vietnam Lang Co Express service by reinstating calls at Nansha, Ho Chi Minh City, and Singapore. Drewry expects freight rates to remain broadly stable in the coming weeks.
• On trade routes from Southeast Asia, spot rates remained stable during the week. Rates from Ho Chi Minh City to Shanghai and from Jakarta to Shanghai held steady at $65 and $80 per 40ft container, respectively. CNC, CMA CGM’s intra-Asia shipping arm, has revised its South Korea–China–Straits KCM2 service by removing calls at Shantou and the second Busan call, while introducing a weekly northbound call at Xiamen. The service continues to operate with seven vessels of 4,200–4,400 teu, maintaining network coverage across key ports in China, South Korea, Malaysia, and Singapore. Drewry expects freight rates to remain stable in July.
• The intra-Asia container freight market has remained resilient this year, with the index up 47% YoY, supported by an early peak season demand and higher shipping costs stemming from geopolitical disruptions. Although the interim US–Iran agreement has led to the reopening of the Strait of Hormuz, uncertainty over its implementation persists, particularly following a recent attack on a vessel transiting the strait. As a result, ongoing geopolitical tensions in the Middle East continue to underpin market uncertainty.
  

Source: Drewry