Indian exporters are expected to face a steep rise in freight rates following U.S. President Donald Trump’s decision to pause reciprocal tariffs for 90 days. The temporary relief, announced on April 9, reduces tariff levels to 10% for countries including India, while continuing to exclude China. The development has triggered a wave of front-loaded shipments, leading to a surge in demand for container space.
Industry experts say the freight rate hike could reach double digits as exporters scramble to dispatch consignments before the 90-day window closes. This spike mirrors a global trend. According to Drewry’s World Container Index, the cost of shipping a 40-feet container increased by 3% to $2,265 last week.
Ajay Sahai, Director General and CEO of the Federation of Indian Export Organisations (FIEO), said, “The exporters’ rush to ship consignments before the 90-day deadline is expected to lead to a double-digit spike in freight rates to the US. Post-deadline, rates could soften.”
Exporters and logistics providers remain cautious. Christian Roeloffs, co-founder and CEO of Container xChange, an online platform for container logistics, said, “Prices are increasing right now, both in typical loading as well as in discharging locations. Essentially, the uncertainty and cancelled shipments are soaking up container inventory. Our members are very much in a wait-and-see mode. Most of them are still expecting structural container price decreases.”