The latest Drewry Intra-Asia Container Index (IACI) decreased by 4% this week to $1,074 per 40ft container.
Despite this weekly decline—driven primarily by softening rates on lanes connecting China to Southeast and South Asia—freight rates continue to hover at double their pre-conflict levels, signaling persistent cost pressures across regional supply chains.
The index remains 32% higher year-on-year (YoY), supported by an early peak season and ongoing geopolitical factors.
Spot rates fluctuated across major trade lanes this week, reflecting changing cargo volumes and shifting geopolitical dynamics:
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Shanghai to Manila: Dropped sharply by 26% to $575 per 40ft container, reversing a 12% gain from the previous week as cargo volumes eased.
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Shanghai to Jawaharlal Nehru Port: Declined 8% to $2,288 per 40ft container.
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Shanghai to Laem Chabang: Decreased to $1,030 per 40ft container.
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Southeast Asia Outbound: Routes from Southeast Asia held remarkably steady. Spot rates from Ho Chi Minh City to Shanghai ($65) and Jakarta to Shanghai ($80) both remained unchanged.
The easing of market conditions on certain routes follows the announcement of a US–Iran peace deal. While an interim agreement has reopened the Strait of Hormuz, Drewry notes that uncertainty surrounding its long-term implementation keeps market sentiment cautious. Ongoing Middle East tensions continue to prop up freight rates globally through elevated bunker costs and fuel surcharges.
Concurrently, US–China trade tensions and high tariff barriers are accelerating supply chain diversification. Manufacturers are increasingly scaling up production capacity across East and South Asian economies, triggering strategic expansions from regional maritime players:
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TVL Marine Re-entry: Taiwanese forwarder and ship manager TVL Marine is re-entering the container market after a seven-year hiatus, launching a new Hong Kong–Taiwan shuttle service this month utilizing the 1,100 teu TVL Keelung.
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Jinjiang Shipping Expansion: Shanghai-based Jinjiang Shipping has ordered four new 1,900 teu feeder container vessels specifically designed to enhance network density across China, Japan, South Korea, and Southeast Asia. Drewry expects intra-Asia freight rates to remain stable in the coming weeks as the market balances easing cargo volumes with structural supply chain shifts.
