A 90-day US tariff pause is prompting Indian exporters to front-load shipments, driving freight rates sharply higher.
Freight rates for shipments from India to the United States are witnessing a sharp surge following the US government’s 90-day pause on reciprocal tariffs. The temporary reduction, which brings tariffs down to 10% for countries including India but excludes China, has led exporters to rush consignments in a bid to benefit from the limited window.
Industry estimates suggest a potential double-digit percentage rise in freight rates, driven by sudden demand. Last week, global freight costs rose by 3%, reaching $2,265 for a 40-feet container, as per Drewry’s World Container Index.
Exporters are operating in a volatile and uncertain global trade environment. Experts warn that once the 90-day period lapses, freight rates may ease, but current market behaviour is adding to operational costs.
With container shortages escalating due to shipment cancellations and port congestion, logistics players remain cautious. Meanwhile, India’s dependency on leased containers, primarily from China, adds further pressure. While a Rs 25,000 crore maritime fund aims to boost domestic capabilities, self-reliance in container logistics remains a long-term goal amid global disruptions.
Source: TOI
