‘Plan rate fluctuations & explore alternate strategies to mitigate impact’

Gautham R, Senior Manager – Global Air Freight, Head – Air Freight, India, WIZ said, “With the 25 per cent tariff imposed by the US on Indian goods effective August 1, we anticipate a negative impact on market demand. To retain volume in a sluggish trade environment, air freight rates from India could drop by 20–35 per cent, especially if the situation persists. Sectors exporting high-value goods are likely to see a decline in demand. However, the smartphones, pharma and energy is kept out of 25 per cent tariff radar as per White house report. Additionally, we’re observing a potential shift in freighter routings, with carriers optimising for destinations that offer better yields, responding to evolving demand signals. Businesses should start planning for rate fluctuations and explore alternate strategies to mitigate the impact.