Is the Intra-Asia Shipping Market the Calm in the Global Storm?
While global shipping routes experience volatility, the Intra-Asia container freight market showcases remarkable stability. According to Drewry’s latest Intra-Asia Container Index (IACI), rates have held steady at $655 per 40-foot container for the fortnight ending 30 May 2025. This consistency suggests a balanced supply and demand dynamic within the region’s key trade lanes.
Understanding the IACI: A Benchmark for Regional Trade
The IACI is a volume-weighted index that reflects actual spot container freight rates across 18 major Intra-Asia trade lanes, particularly those connected to China. These routes encompass North/East Asia (Japan, South Korea, Taiwan), Southeast Asia (Indonesia, Malaysia, Philippines, Thailand, Vietnam), and South/West Asia (India, United Arab Emirates). By focusing solely on the shipping cost component and excluding terminal handling charges, the IACI provides a transparent benchmark for stakeholders in the region.
Factors Contributing to Rate Stability
Several elements contribute to the steadiness of Intra-Asia freight rates:Indian Transport & Logistics
- Balanced Supply and Demand: The equilibrium between available shipping capacity and cargo demand helps maintain consistent rates.
- Regional Trade Dynamics: Intra-Asia trade continues to be robust, driven by manufacturing activities and consumer demand within the region.
- Operational Efficiencies: Shipping lines have optimized their operations, ensuring efficient vessel deployment and route management.
These factors collectively foster a stable shipping environment, even as other global routes face disruptions.
Implications for Shippers and Stakeholders
For businesses engaged in Intra-Asia trade, the steady freight rates offer predictability in logistics planning and budgeting. This stability can enhance supply chain reliability, allowing companies to maintain consistent delivery schedules and manage costs effectively.
“The latest assessment indicates no change in the composite index, suggesting a period of rate stability across these key intra-regional corridors where demand and capacity appear to be in balance.”
— Drewry Supply Chain Advisors
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