Asia-Pacific Less-than Container Load (LCL) Market Size (2024 - 2029)

Asia-Pacific Less-than Container Load (LCL) Market Analysis

The Asia-Pacific Less-than Container Load Market size is estimated at USD 9.89 billion in 2024, and is expected to reach USD 12.65 billion by 2029, growing at a CAGR of 5.05% during the forecast period (2024-2029).

The market is driven by the increasing sea freight in the region. Furthermore, the market is driven by the decreasing rates due to uncertainties in the market.

According to Dimerco, intra-Asian ocean freight rates are "sliding," although the market is holding up better than long-haul shipments. The Taiwanese forwarder stated in its September 2022 Asia-Pacific freight report that demand for maritime freight was deteriorating globally owing to the economic crisis and inflation, with macro data not indicating a speedy reversal. Overall, ocean loading factors ex-Asia for long-haul shipments decreased by 94%, according to Dimerco. In the coming weeks, the percentage could fall to 92% or such. Low demand has resulted in falling maritime freight charges. Intra-Asian rates from Southeast and Northeast Asia are also falling but remain reasonably constant when compared to rates into and out of China. Indeed, the South-East Asia Freight Index decreased by 2.5% in September 2022, while the Shanghai Containerised Freight Index sank by 10.4%.

Because of the increased trade among RECP countries, as well as the raw material transport required for the manufacturing move from China into Southeast Asian countries, cargo traffic within this region is still highly active. According to Maersk's most recent Asia-Pacific report, intra-Asian and intra-African trades were the only ones to have container volumes rise by 3.7% between May and July 2022. Changes in the macroeconomic climate are hastening market normalization and allowing ports to decongest, putting pressure on the value proposition supplied by carriers. Maersk claimed that overall demand for Asia-Pacific-Indian Subcontinent maritime freight was dropping due to the economic environment in destination regions and that automotive volume has been impacted by Pakistan's economic condition and also flooding.

Global shipping is confronting several challenges. While container rates are falling significantly, contract rates are approaching spot rates. This tendency is visible in other places, such as China and Southeast Asia, where, despite the drop in container rates, demand for shipping remains weak due to global inflation and constrained demand, resulting in a large drop in freight prices. Container costs have declined dramatically in key Asian ports such as Ningbo, Shanghai, and Singapore in the last year, indicating that the current situation may stay shortly. Container trends are an important indicator of economic success and global trade, and the market picture now appears grim. Container pricing and leasing rates are falling as the global shipping industry is witnessing a freefall in container rates.

After the Chinese New Year, container volumes and rates remain low, indicating a shift in the shipping business. An overstock of containers had resulted in carriers wishing to sell their inventory by October 2022. Spot rates, contract rates, and container prices have all plummeted dramatically as a result of global inflation and limited demand, with one key Asia-US route suffering an 80% decline in freight pricing. Furthermore, container prices remained low, with Asia-US West Coast rates 11% lower in January 2023 than in January 2020 and Asia-US East Coast rates 84% lower in January 2023 than in January 2022. Consumer demand in North Europe, in addition to Asia-US transportation routes, is unlikely to improve very soon.

Asia-Pacific Less-than Container Load (LCL) Industry Segmentation

LCL stands for less than the container load. It refers to circumstances in which the cargo has modest volumes or dimensions that do not require the complete volume of a container. The shipper can choose LCL, which combines their shipment with other smaller cargoes in this example. A consolidated container is one in which numerous smaller goods are merged to be shipped in the same container. A complete background analysis of the Asia-Pacific Less-than-Container Load (LCL) Market, including the assessment of the economy and contribution of sectors in the economy, a market overview, market size estimation for key segments, emerging trends in the market segments, market dynamics and geographical trends, and COVID-19 impact, is covered in the report.

The Asia-Pacific less-than container load (LCL) market is segmented by destination (domestic and international), end-user (manufacturing, retail (including e-commerce), healthcare and pharmaceuticals, agriculture, and other end-users), and country (Australia, China, India, Indonesia, Japan, Malaysia, Thailand, Vietnam, and other Asia-Pacific countries).

The report offers market size and forecast values (USD) for all the above segments.