The Drewry Intra-Asia Container Index (IACI), a critical benchmark for regional procurement teams, decreased 4% this week to $993 per 40ft container.
This marks the third consecutive weekly decline for the index, signaling a clear cooling of the early peak-season demand surge and a gradual easing of upward pressure on ocean freight rates.
The softening market was most pronounced on major spot trade lanes connecting China with South and Southeast Asia. Freight rates from Shanghai to Jawaharlal Nehru Port (India) fell 13% to $1,883 per 40ft container—marking three straight weeks of declines. Similarly, rates from Shanghai to Manila dropped 10% to $497 per 40ft container, heavily influenced by easing port congestion in Manila where average vessel waiting times fell by 7.8 hours week-over-week. Rates from Shanghai to Ho Chi Minh City also dipped 6% to $858 per 40ft container.
In contrast, trade routes originating out of Southeast Asia showed modest, stable movements. Rates from Ho Chi Minh City to Shanghai edged up by $4 to $69 per 40ft container, while Laem Chabang to Shanghai rates ticked down $9 to $220.
Ongoing US-China trade tensions continue to accelerate supply chain diversification across Asia. To support this shifting manufacturing landscape, carriers are actively expanding regional networks:
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CULines Network Expansion: China United Lines is launching its new South Korea–China–India (KCI) service on July 17. The service introduces direct South Korea–West India/Pakistan connections, strengthening regional connectivity alongside its existing Western India offerings.
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CNC Service Revision: CNC, the intra-Asia specialist arm of CMA CGM, updated its ‘JTX’ (Japan–South China–Thailand–Cambodia) service. By replacing its Shekou call with Shantou and adding Batangas (Philippines), the carrier provides enhanced shipment flexibility and direct South China routing to Thailand and Cambodia.
Despite the recent slide, the intra-Asia container freight market has demonstrated remarkable resilience this year, with the index remaining up 41% year-over-year. This long-term strength has been buoyed by the early peak-season rush and elevated shipping costs stemming from geopolitical disruptions.
While an interim agreement between the US and Iran has been reached, implementation uncertainties and ongoing Middle East hostilities keep market sentiment cautious. Looking ahead, Drewry expects intra-Asia freight rates to remain broadly stable in the coming weeks as the peak season winds down.
