Average spot rates for most intra-Asia container trade lanes have declined again in the first two weeks of September, according to the latest update from Drewry’s new Intra-Asia Container Index (IACI), released on September 17, 2024. The IACI, which represents a weighted average of spot container freight rates, dropped by 25% to $668 per 40ft container in the past fortnight. This marks a 35% decrease from its recent high of $1,025 in late July.
Similar to Drewry’s widely followed World Container Index (WCI) for East-West trade lanes, the IACI is now available as an open-access resource. It provides shipping stakeholders with insights into one of the world’s key container shipping markets. The IACI tracks spot container freight rates across 18 major intra-Asia trade lanes, including routes to and from China, Japan, South Korea, Taiwan, Indonesia, Malaysia, the Philippines, Thailand, Vietnam, India, and the United Arab Emirates. The index will be updated bi-weekly on the Drewry website, with specific indices for eight major regional trade routes available to registered users.
Philip Damas, Head of Supply Chain Advisors and Managing Director at Drewry, highlighted that as container shipping growth shifts from inter-continental to intra-regional trades, monitoring these trades has become significantly more crucial. Drewry has observed increased volatility in intra-Asia spot rates in recent years, with rates rising sharply over the summer and then falling quickly due to softening regional demand.