India’s cool chain logistics providers are eyeing alternative markets as declining US demand and higher tariffs squeeze export flows, prompting a strategic shift toward regions with more stable growth prospects.
Industry sources say perishables exporters—including fruit, vegetable, seafood and pharmaceutical shippers—have faced a noticeable dip in orders from the US over recent months. Forwarders attribute the slowdown to tariff-related disruptions, inventory corrections, and continued macroeconomic uncertainty in key American retail segments.
As a result, cool chain operators in India are widening their geographical focus, with the Middle East, Southeast Asia, and parts of Europe emerging as priority destinations. “With US lanes softening, carriers and logistics firms are redirecting capacity toward markets showing healthier consumption patterns,” said one Mumbai-based cold chain specialist. “Pharma and seafood, in particular, are seeing stronger traction in Dubai, Singapore and the UK.”
Several major perishables-focused freight forwarders have also begun negotiating revised capacity agreements with airlines and ocean carriers to secure competitive rates on non-US routes, industry executives told The Loadstar. Meanwhile, integrated cool chain operators are expanding temperature-controlled warehousing near major gateways such as Mumbai, Kochi and Hyderabad to support diversified outbound flows.
However, the pivot comes with challenges. Market analysts warn that emerging destinations—while promising—lack the scale of the US and may not fully offset revenue losses in the short term. In addition, capacity imbalances, rising airfreight rates on Asia–Middle East sectors, and fragmented regulatory frameworks could limit margins.
Still, industry players remain optimistic. “India’s perishables sector is resilient, and diversification is the only logical response to tariff volatility,” said a senior executive at a leading logistics firm. “As long as operators stay agile, the cooling in the US market can be absorbed.”
With geopolitical shifts continuing to reshape global demand patterns, Indian cool chain logistics providers are preparing for a longer-term realignment—one in which market diversity, not reliance on a single trade lane, becomes the new operating model.
