Indian exporters are witnessing a 5–10% rise in freight rates to the US as they fast-track urgent shipments ahead of an anticipated 50% tariff hike, according to Dushyant Mulani, Chairman of the Federation of Freight Forwarders’ Associations (FFFAI).
Given the 40–45 day transit time for sea freight, many exporters are shifting critical consignments to air cargo to meet the deadline and pay the existing 25% duty. “Only by using air freight can shipments arrive in time before the tariff hike,” explained Ajay Sahani, Director General of the Federation of Indian Export Organisations (FIEO).
Pharmaceuticals and electronics, key components of India’s export portfolio, remain unaffected for now, providing temporary relief. However, exporters fear prolonged disruptions. “We expect the volatility to last at least 6–12 months,” Mulani cautioned, noting that both sea and air ports are under close watch.
Pankaj Chadha, Chairman of the Engineering Export Promotion Council (EEPC), confirmed that freight costs have already surged significantly. Rates from India’s East Coast to the US now range from $2,400 to $2,600, while West Coast shipments cost $2,100 to $2,300. For example, the Mumbai–Savannah route for a 20-foot container has jumped from $1,700 to $2,300, a $500 increase, marking a nearly 15% hike in sea freight charges.
As cost pressures mount, exporters are exploring alternative markets should the tariff situation persist. The Indian government is engaging through diplomatic channels and is expected to announce strategic support measures within the week. “Efforts are underway to safeguard exporters,” Mulani added.
