The latest US-India tariffs are weighing heavily on global air cargo flows. Recent figures show that airfreight volumes from India to the US have dropped sharply, following Washington’s decision to impose tariffs of up to 50% on Indian imports.
Air Cargo Volumes Plunge
According to data provider WorldACD, air cargo volumes from India to the US fell by 12% in week 35 (ending August 31) and by a further 14% in week 36. This decline comes after a brief surge in mid-August, when shippers rushed to move goods before tariffs doubled from 25% to 50% on August 27.
Spot rates mirrored demand, falling below $4/kg for the first time in months, reaching $3.99/kg in week 36 — around 22% lower than a year ago.
Why Tariffs Are Impacting Trade
The tariffs were introduced as part of Washington’s reciprocal trade measures and penalties for India’s purchase of Russian oil. Until recently, India had been seen as a strong alternative for US importers seeking to diversify away from China, which has also been hit by tariffs.
WorldACD noted that India-to-US tonnages had risen year-on-year, but the latest tariff escalation has reversed much of that momentum.
Shifts in Global Cargo Demand
While India-US volumes have dropped, demand to Europe has risen, with week 36 showing an 8% year-on-year increase. At the same time, Sri Lanka-US volumes surged by 13%, highlighting a regional shift in trade flows.
China and Hong Kong have also felt the impact of US tariffs. Cargo to the US from those markets fell 5% year-on-year in August, while shipments to Europe climbed 11% during the same period.
Implications for Global Supply Chains
The sharp changes in cargo flows highlight how tariff policy reshapes global logistics. Importers and freight forwarders are adapting by diversifying supply chains and redirecting goods toward Europe and other markets.
Source: www.aircargonews.net