Container freight rates in the intra-Asia market faced a sharp decline in the first half of August. According to the Japan International Freight Forwarders Association (JIFFA), Drewry’s Intra-Asia Container Index (IACI) dropped 9%, settling at US$592 per FEU.
This marks a 35% decrease compared to the same period last year. Analysts expect rates to remain steady for the rest of the month.
Mixed Trends Across Key Trade Lanes
Routes Recording Declines
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Busan to Shanghai: Rates slipped 2% to US$51 per FEU.
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Jakarta to Shanghai: Fell 6% to US$51 per FEU.
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Shanghai to Jawaharlal Nehru (India): Declined 7% to US$1,397 per FEU.
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Shanghai to Singapore: Dropped sharply by 11% to US$738 per FEU.
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Yokohama to Shanghai: Suffered the steepest decline, plunging 31% to US$72 per FEU.
Routes Showing Gains
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Ho Chi Minh City to Shanghai: Rose 11% to US$39 per FEU.
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Shanghai to Tanjung Pelepas (Malaysia): Increased 6% to US$1,024 per FEU.
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Shanghai to Yokohama: Climbed 7% to US$777 per FEU.
Market Outlook
Despite the overall decline, the mixed movements on individual trade lanes highlight ongoing volatility in the regional shipping market. Drewry expects rates to hold steady for the remainder of August, although the year-on-year comparison underscores significant downward pressure on freight costs.
About the Index
Drewry’s Intra-Asia Container Index (IACI) monitors actual spot container freight rates across 18 intra-Asia trade routes. The index is updated every two weeks, offering a timely snapshot of regional shipping trends.
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Source: CONTAINER NEWS
