Container freight charges are anticipated to stay subdued for the remainder of FY26 as uncertainty in world commerce continues, pushed by US President Donald Trump’s unpredictable tariff insurance policies, trade consultants stated. Based on ET, exporters rushed shipments to the US forward of the August 27 deadline for a steep 50% tariff on Indian items, concentrating on the Christmas season.India’s exports to the US rose 18% year-on-year to $40.39 billion throughout April-August 2025, far outpacing the nation’s general export progress of two.5% to $184.13 billion in the identical interval. In the meantime, China’s exports to India climbed over 10% to $51.57 billion, exceeding India’s general import progress of two.14%, reported ET.Ajay Sahai, director basic and CEO of the Federation of Indian Export Organisations (FIEO), stated freight charges are prone to see a 10-15% correction as a result of oversupply amid weakening world demand. “Inflationary pressures are persistent, and the danger of recession in superior markets might deal a significant blow to world commerce,” he stated, as per ET.The Drewry World Container Index fell 6% sequentially this week to $1,913 per 40ft container, down from greater than $4,000 a 12 months in the past. On the South East Asia to East Coast North America route, charges dropped to $2,600 per 40ft container from $2,900 ten days earlier and practically halved from $5,500 a 12 months in the past.Bhavik Mota, head of markets (Intra Gulf & Far East, West & Central Asia) at AP Moller – Maersk, stated shipments of automotive merchandise have declined sharply, whereas FMCG exports stay regular and prescription drugs are anticipated to remain resilient. “Exports of shrimp are susceptible too. With costs climbing for end-consumers as a result of Trump’s tariffs, this might ultimately translate into a bigger drop,” he stated, as per ET.Smaller Indian exporters are dealing with the brunt of excessive US tariffs, with some cancelling orders. “The tip shopper might be impacted and it’s going to harm demand. The massive ones are sustaining, however smaller shippers are having issues,” stated a senior delivery official.Not all markets are bleak. Improved commerce relations with China have supported Indian imports forward of the Diwali season, with Drewry’s Intra-Asia Container Index rising 5% sequentially to $611 per 40ft container, reflecting firmer regional commerce. Nevertheless, trade officers warn that until tariffs on India are eased, long-term pressures on world provide chains might intensify.
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