India-US Air Cargo Volumes Take a Hit as Tariffs Bite
Summary
Airfreight flows from India to the United States tumbled in late August after Washington introduced steep tariffs on Indian imports — initially 25%, then doubled to 50% from 27 August. WorldACD data shows a rush to export before the tariff increase (a 28% spike in week 34), followed by a 12% drop in week 35 and a further 14% decline the next week. Spot market rates fell below US$4/kg (US$3.99/kg in week 36), roughly 22% down on last year’s elevated levels.
Meanwhile India–Europe volumes held up (up 8% year-on-year in week 36) and Sri Lanka saw increased US demand. The shift underlines how tariff policy is reshaping trade lanes and forcing carriers and shippers to reallocate capacity and rethink sourcing strategies.
Key Points
- US raised duties on Indian goods (25% then 50% from 27 Aug), triggering immediate market reactions.
- Exporters rushed shipments ahead of the hike: India–US volumes jumped 28% in week 34, then fell 12% (week 35) and 14% the following week.
- Spot rates dropped to US$3.99/kg in week 36, about 22% below last year’s elevated rates.
- India–Europe airfreight showed resilience (week 36 volumes up 8% YoY), indicating route diversification rather than uniform decline.
- Carriers and shippers are shifting capacity, exploring new markets and recalibrating sourcing in response to the tariffs.
Context and Relevance
This episode is a clear example of how trade policy quickly translates into logistics volatility: sudden surges, sharp falls and pressure on spot rates. For exporters, freight forwarders and airlines the effects are immediate; longer term it accelerates reassessment of sourcing, routing and capacity planning if protectionist measures persist.
Why should I read this?
Because tariffs aren’t just politics — they smack into your shipping schedules, rates and customers. This short read gives you the data (who shipped when), the market impact (rates and volumes), and the likely next moves from carriers and shippers. Quick, useful and saves you time — you’ll know what to watch next.
Source
Source: https://www.logisticsinsider.in/india-us-air-cargo-volumes-take-a-hit-as-tariffs-bite/
