Trump Tariffs Cause Shipping Space Shortage

As the August 27 deadline for Trump tariffs approaches, Indian exporters are rushing to ship as much as possible before D-Day.

Sources told CNBC-TV18that frontloading began in August and Indian exporters

continue to race against time to export as much as possible before the tariffs kick in.

This frontloading has led to a shortage of space on mother vessels designated for the US. People associated with the export and shipping businesses told CNBC-TV18 that the availability of space for containers on mother vessels has become a major issue. Exporters claim the waiting time to secure a booking on a mother vessel has increased by 10-12 days.

Not just that, the availability of mother vessels themselves has also

become a challenge. Sources said that the mother vessel XIN Shanghai was scheduled to reach India on August 13 but is now expected to arrive on August 23. Similarly, the mother vessel MSC Bremen was supposed to arrive on August 18, but so far there is no update on its arrival.

"The August 27 deadline is here now, and there is a surge in the number of containers being exported to the US. Exporters are struggling for space on vessels as everyone wants to ship before the tariffs kick in," Israr Ahmed, former VP, Federation of Indian Export

Organizations (FIEO), toldCNBC-TV18. 

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"Exporters of non-voluminous products like footwear, garments, and textiles are now opting for the air cargo route, as that will still cost them less than the tariffs," he added.

Experts say the bulk of frontloading took place in the first and second weeks of August.

Ajay Sahai, DG and CEO, FIEO, told CNBC-TV18that, "The shipments need to reach the US by September 16 to escape the

tariffs. Right now, we are cutting it too fine. The minimum sailing period to the US is 25 days, so ensuring shipments arrive by September 16 is challenging. Maximum frontloading happened in the first two weeks of August."

"We understand that 20% excess inventory has already been built up in the US as everyone rushed to export before the August 27 deadline. Import demand from the US will now start decreasing," Sahai said.

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