Freight Frenzy: Indian Exporters Race Against Time Amid US Tariff Pause

Indian exporters are bracing for a surge in freight rates as they rush to ship consignments during the 90-day pause on reciprocal tariffs announced by the United States. This temporary relief, which reduces tariff levels to 10% for countries including India, has triggered a wave of front-loaded shipments, straining container availability and driving up costs.

 

The spike in freight rates is expected to reach double digits, mirroring global trends where the cost of shipping a 40-foot container rose by 3% last week. Exporters are scrambling to dispatch goods before the tariff pause ends, particularly in sectors like mobile phones and gems and jewelry, where airlifting is feasible and inventory management is critical.

 

Industry experts highlight the challenges faced by India's container logistics sector, which relies heavily on leased containers from foreign players, particularly China. The government's Rs 25,000 crore Maritime Development Fund aims to boost domestic shipbuilding, but achieving container self-sufficiency will take time. Meanwhile, exporters are navigating uncertainties and negotiating burden-sharing with buyers to manage the financial impact of tariffs.

 

This development underscores the importance of agile and robust supply chains in a volatile trade environment. As exporters race against the clock, the freight rate surge reflects the broader complexities of global logistics and the need for strategic resilience.

 

Sources: Economic Times, Times of India, Financial Express.