Navigating Trade Turbulence: Impact of US Tariffs on Indian Container Volume
The growth of container volumes in India is expected to slow due to US tariffs affecting key sectors. Despite an 8% projected growth in volume supported by capacity expansions, external factors like insurance costs and shipping rates pose challenges. The geopolitical landscape adds further complexity to trade dynamics.
- Country:
- India
Container volume growth in India is predicted to moderate this fiscal year due to the impact of US tariffs on exports in sectors such as home textiles, gems, shrimp, engineering components, and specialty chemicals, according to a report by CareEdge Ratings.
The agency projects an 8 percent growth rate for volumes, reaching approximately 380 million metric tonnes. This growth is supported by capacity expansion, increased transshipment activity, and the completion of the Western Dedicated Freight Corridor.
Despite these positives, challenges such as rising insurance costs and fluctuating shipping rates linked to the Shanghai Freight Rate Index continue to impact the sector's growth. Furthermore, geopolitical disruptions and trade tensions, particularly between India and Pakistan, are influencing cargo volumes.
(With inputs from agencies.)
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