Indian exporters are likely to face a sharp increase in freight costs following U.S. President Donald Trump’s decision to temporarily pause reciprocal tariffs for 90 days. Announced on April 9, the move lowers tariff rates to 10% for several countries, including India, but notably excludes China.

The temporary relief has sparked a rush among exporters to ship goods before the 90-day window closes, leading to a surge in demand for container space and pushing up freight rates. Industry experts warn that freight costs could rise by double digits in the coming weeks.

According to Drewry’s World Container Index, the cost of shipping a 40-foot container rose by 3% last week to $2,265, reflecting the global impact of front-loaded shipments.

Ajay Sahai, Director General and CEO of the Federation of Indian Export Organisations (FIEO), stated, “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 amid the volatility. Christian Roeloffs, co-founder and CEO of Container xChange, noted that rising prices at both loading and discharge points are depleting container inventories. “Our members are in wait-and-see mode, though many still anticipate a structural drop in container prices,” he said.