The cost of shipping containers within Asia is experiencing a significant decline, according to a new report from Drewry. This trend comes amidst the launch of their fresh Intra-Asia Container Index (IACI), a tool designed to track spot freight rates across 18 major Asian trade lanes.
The IACI reveals a 15% decrease in spot rates within the first two weeks of September 2024. This follows a period of steady decline since a peak in July, with some routes witnessing drops exceeding 30% in just two weeks. Drewry attributes this correction to several factors, including a seasonal slowdown in exports from Asia and a potential oversupply of container vessels due to rerouting caused by the Red Sea conflict.
The launch of the IACI signifies Drewry’s recognition of the growing importance of intra-regional Asian trade. This market segment has witnessed significant growth in recent years, surpassing inter-continental trade in terms of container shipping volume. By providing a transparent and reliable index, Drewry aims to empower businesses and industry stakeholders to make informed decisions regarding intra-Asian freight movements.