WorldACD data shows India-US air cargo volumes slump after tariffs, while Europe emerges as a stronger export market.
Air cargo traffic from India to the United States has taken a sharp hit following Washington’s decision to raise tariffs on Indian imports to as high as 50%. According to WorldACD, volumes fell 12% in the week ending August 31 and dropped a further 14% the following week. This decline followed a surge in mid-August, when shippers rushed goods ahead of the tariff hike.
Spot rates have also reflected the downturn, slipping below $4 per kg for the first time in months to $3.99 in week 36, down 22% year on year. The slowdown marks a reversal of earlier growth that came as US buyers diversified away from Chinese suppliers.
While the India-US trade lane has weakened, Europe has gained momentum. WorldACD reported an 8% year-on-year increase in Indian exports to Europe in week 36, while shipments from Sri Lanka to the US rose 13% during the same period. Similar shifts are seen in China, where cargo flows to Europe rose 11% in August as US-bound volumes contracted.
