The Drewry Intra-Asia Container Index (IACI), a critical benchmark for global procurement teams, dipped 4% this week to $1,035 per 40ft container.
While this marks the second consecutive weekly decline—signaling that the early peak-season volume surge is beginning to ease—overall market rates remain highly elevated, sitting at 88% above pre-conflict levels.
The minor contraction was primarily driven by falling spot rates on high-volume trade lanes connecting China with Southeast Asia and South Asia.
Specifically, freight rates from Shanghai to Jawaharlal Nehru Port slid 6% to $2,155 per 40ft container. Meanwhile, the Shanghai-to-Manila lane saw a 3% decline to $555 per 40ft box, following a massive 26% drop last week.
The cooling pressure in Manila is directly tied to improving port operations, where average vessel waiting times fell by four hours week-over-week. Additionally, rates from Shanghai to Laem Chabang fell to $974 per 40ft container.
Despite this week’s softening, the broader intra-Asia freight market remains incredibly resilient, posting a 47% increase year-over-year. The market’s underlying strength is driven by two main factors:
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Geopolitical Supply Chain Stress: While the interim US–Iran agreement led to the reopening of the Strait of Hormuz, a recent attack on a transit vessel has renewed anxiety. The uncertainty surrounding the execution of this deal continues to keep shipping costs high and underpins market volatility.
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The Southeast Asian Manufacturing Boom: Ongoing US–China trade tensions have accelerated industrial migration. Chinese companies are aggressively expanding their manufacturing investments across Southeast Asia to mitigate tariff risks and preserve global market access.
Carriers are actively recalibrating to meet these changing trade flows. For instance, TVL Marine has re-entered the intra-Asia market, and MSC expanded its South China–Central Vietnam Lang Co Express service by bringing back calls at Nansha, Ho Chi Minh City, and Singapore. Conversely, CNC (CMA CGM’s intra-Asia arm) streamlined its KCM2 service by cutting out Shantou and a second Busan call, instead opting for a new weekly northbound call at Xiamen.
On routes originating from Southeast Asia, the market held remarkably steady. Rates from Ho Chi Minh City to Shanghai ($65) and Jakarta to Shanghai ($80) remained completely unchanged this week.
Looking ahead, Drewry projects that the early peak-season rush has successfully hit its ceiling, and forecasts that intra-Asia freight rates will remain broadly stable throughout July.
