India braces for freight spike as exporters front-load shipments

According to local media sources, Indian exporters are bracing for a sharp rise in freight rates following the US government’s decision to temporarily reduce tariffs on select countries, including India, for 90 days. The tariff pause has led to a surge in export activity as businesses rush to ship goods before the deadline, significantly increasing demand for container space.

Industry experts expect freight rates to spike into double digits during this period. According to Drewry’s World Container Index, the cost of shipping a 40-foot container rose by 3% last week to $2,265, reflecting the mounting pressure on logistics. Exporters are anticipating a temporary rise in costs, with rates likely to ease after the 90-day window closes.

The situation is further complicated by global shipping disruptions and continued instability in the Red Sea. India’s container logistics sector also remains vulnerable due to its dependence on leased containers, mostly from China. While the government’s Maritime Development Fund aims to improve domestic capacity, experts caution that container self-sufficiency remains a long-term goal.