Indian exporters are bracing for a 5–10% rise in freight rates to the United States as they race to ship goods before an expected 50% tariff hike takes effect. The urgency is particularly high given the 40–45-day transit time for sea freight, prompting many exporters to switch to air cargo to meet deadlines and avoid higher duties.

According to Dushyant Mulani, Chairman of the Federation of Freight Forwarders' Associations (FFFAI), this rush is especially visible in sectors where delivery deadlines are non-negotiable. “Only by using air freight can shipments arrive in time before the tariff hike,” adds Ajay Sahani, Director General of the Federation of Indian Export Organizations (FIEO). 

Key Sectors: Mixed Impact
While pharmaceuticals and electronics major contributors to India’s export portfolio, remain unaffected for now, this relief is likely temporary. The engineering goods sector, textiles, and consumer products are already experiencing cost pressures.
Freight cost data from Engineering Export Promotion Council (EEPC) indicates:
•    East Coast (India → US): $2,400–$2,600
•    West Coast (India → US): $2,100–$2,300
•    Mumbai–Savannah (20-ft container): $1,700 → $2,300 a nearly 15% hike in sea freight charges.

Do You Know?
Air freight, though far costlier than sea freight, carries over 35% of global trade value due to its speed and reliability, especially in high-value, time-sensitive shipments.

Port Volatility and Market Diversification
Both sea and air ports are under close watch, and exporters expect volatility to last 6–12 months, according to Mulani. In response, companies are exploring alternative markets in Asia, Europe, and Africa to cushion the impact of US-bound disruptions.
The Government of India is engaging in diplomatic discussions with the US and is expected to announce strategic support measures within the week, potentially subsidies, export incentives, or policy relaxations.

Do You Know?
The US accounts for nearly 18% of India’s total exports, making it the single largest destination for Indian goods.
The Exim Transtrade Perspective

At Exim Transtrade, we know that in times of market disruption, logistics agility is everything. Our team specializes in:
•    Priority air cargo allocations to beat tariff deadlines
•    Flexible routing options to optimize costs
•    End-to-end multimodal freight solutions for global exporters
From urgent last-mile deliveries to real-time shipment tracking, we ensure that your cargo arrives on time no matter how turbulent the market becomes.

Do You Know?
Sea freight rates between India and the US can fluctuate by over 20% in a single quarter, driven by fuel price swings, demand spikes, and policy shifts.

Final Takeaway

The next few months will test exporters’ adaptability like never before. With freight rates climbing, tariffs looming, and supply chains in flux, strategic logistics partnerships are no longer optional, they’re a competitive necessity.
References & Sources:
1.    Business Standard – Indian exporters rush shipments to beat tariff hike (Aug 2025)
2.    Economic Times – Freight rates to US surge ahead of tariff deadline (Aug 2025)
3.    IATA – Air Cargo Facts and Figures (2024)
4.    Ministry of Commerce, Government of India – Export Statistics 2024
5.    UNCTAD – Review of Maritime Transport (2024)