Freight Costs Surge amid Tariff Uncertainty and Container Crunch

Freight costs have surged by double digits as Indian exporters scramble to secure consignments amid uncertainties over reciprocal tariffs imposed by the US. Shipping companies and exporters are also preparing for a potential container shortage, triggered by stalled consignments in China and shifting global trade patterns.

Swarup Bose, founder and CEO of Celcius Logistics, said that the freight rates have already shown an initial double-digit uptick as exporters rush to pre-book consignments in anticipation of further disruptions. He further added that this spike is forcing businesses to reevaluate their logistics strategies.

Currently, India faces a 10 per cent ‘baseline’ tariff after the US suspended the earlier 26 per cent ‘reciprocal’ duties for 90 days. Meanwhile, China, the largest exporter to the US, continues to grapple with a steep 145 per cent tariff.

Bose noted a significant rise in precautionary planning, especially in sectors like perishables and pharmaceuticals. Exporters are booking shipments early and building inventory buffers to mitigate risks from escalating disruptions.

Shipping companies also flagged concerns over a looming container shortage. According to Visions’ Tradeview platform, container bookings from China to the US dropped sharply from 148,000 TEUS to 54,000 TEUS in just a week.
Jitendra Srivastava, CEO of Triton Logistics & Maritime Pvt. Ltd., warned that if trade disruptions continue for another week or more, freight costs could rise by 10 to 30 per cent, alongside worsening container availability. He further emphasised that any impact between China and the US will ripple across global freight rates.