The imposition of 50% tariffs on Indian exports to the US is already disrupting container shipping on the India–US East Coast (USEC) route. With cargo demand weakening, carriers are cutting back sailings and rethinking their deployment strategies to balance supply with shrinking exports.

Local forwarders report at least three blank sailings scheduled from West India ports (Nhava Sheva and Mundra) in the first half of September. Typically, six weekly sailings link West India with North America, but reliability has suffered since the Red Sea crisis, and now carriers are forced to further trim schedules. Ocean Network Express (ONE) has left vessel gaps in its WIN service, while CMA CGM has cut a sailing on its Indamex service as it works to stabilize schedules with more ships entering rotation.

Spot rates are also softening. According to Platts, India–USEC rates averaged $2,300 per FEU as of late August, down 3% on the week. Asian carriers are quoting $2,000–$2,100 per FEU, while European operators remain slightly higher at $2,300–$2,500. Planned rate hikes for September have been withdrawn, with short-term contract rates extended instead.

Industry observers warn of deeper trouble ahead. “Carriers are in for enormous demand downturns, so even a service exit will be no surprise,” one analyst noted. The sharp drop in bookings is a direct reflection of the tariff shock, which has made Indian goods significantly less competitive in the US market.

Exporters agree. S.C. Ralhan, president of the Federation of Indian Export Organizations, said that over half of India’s shipments to the US now face a 30%–35% cost disadvantage compared with competitors in China, Vietnam, Cambodia, the Philippines, and other Southeast Asian countries. This could trigger a significant loss of market share for Indian exporters.

Data underscores the urgency. PIERS figures show shipments from the Indian Subcontinent to the US surged to 152,630 TEUs in July — the highest monthly total in 2025 — as exporters rushed to get cargo across before the August tariff deadline. But with tariffs now in place and demand faltering, volumes are expected to fall sharply in the months ahead.

For carriers, the challenge is twofold: balancing excess vessel capacity on the lane while navigating a sharp drop in India–US trade competitiveness. With tariffs reshaping cargo flows and rivals from Southeast Asia gaining ground, the outlook for Indian exporters and the carriers serving them remains uncertain.

Source: joc.com