The intra-Asia container shipping market continued to show clear signs of softening this week as the early peak-season surge began to lose momentum. According to the latest data from Drewry, the Intra-Asia Container Index (IACI)—a key industry benchmark—dropped 2% to $960 per 40ft container, marking its fifth consecutive weekly decline and indicating that upward pressure on regional freight rates is steadily easing.
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Outbound China Lanes Lead Decline: Spot rates on trade routes linking China with Southeast Asia and South Asia saw significant downward adjustments.
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Shanghai to Jawaharlal Nehru Port (India): Down 4% to $1,667 per 40ft container.
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Shanghai to Jakarta (Indonesia): Down 4% to $1,475 per 40ft container.
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Shanghai to Kaohsiung (Taiwan): Down 4% to $1,433 per 40ft container.
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Southeast Asian Exports Remain Stable: Outbound spot rates from Southeast Asia held firm.
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Ho Chi Minh City to Shanghai: Maintained at $65 per 40ft container.
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Jawaharlal Nehru Port to Shanghai: Steady at $117 per 40ft container.
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While market demand cools, operational conditions in North Asia face pressure. The lingering impact of Typhoon Bavi has caused ongoing vessel delays, schedule disruptions, and high yard utilization across major hub ports, particularly Shanghai and Ningbo.
Concurrently, ocean carriers are adjusting their regional capacity through strategic network expansions:
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Sinotrans is expanding its China–India presence by securing slot space on the CSX/CI8 service (jointly operated by Emirates Shipping and Evergreen). Marketed by Sinotrans as CIW2, the service connects North and South China directly with West Coast India via transshipment hubs in Port Klang and Colombo.
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COSCO has strengthened its Northeast Asia network by joining Yang Ming’s JTS service as a vessel provider. The three-week rotation enhances connectivity across Japan, Taiwan, and China, featuring calls at Nagoya, Tokyo, Yokohama, Keelung, Kaohsiung, Chiwan, and Xiamen.
Despite operational delays and persistent geopolitical volatility in the Strait of Hormuz—heightened by recent security incidents involving damage to the GFS Galaxy and the sinking of the Luni—market sentiment remains cautious. Drewry anticipates that intra-Asia freight rates will remain broadly stable over the coming weeks, though any further geopolitical escalation could slow the ongoing decline.
