Indian shippers see cargo rush, freight rates surge

After the United States (US) administration announced a 90-day pause on the tariff war with China last week, Indian shippers are facing the risk of being caught in disruption in global supply chains because Chinese goods are seeing an evacuation rush.

- DHRUVAKSH SAHA

"The US-China announcement on the temporary lowering of tariffs fired the starting gun for shippers to rush as many imports as they can during the 90-day window of opportunity. There is no time to waste for these shippers and the rush of cargo will put upward pressure on spot rates on transpacific trades," said Peter Sand, chief analyst, Oslo-based market intelligence firm Xeneta.

The effects of the announcement were visible immediately. On Thursday, the Drewry world container index, a global benchmark index that measures weekly ocean freight rates for eight major east-west routes, rose 8 per cent to $2,233 after multiple weeks of decreasing rates.