FlexSack continues to closely monitor several developments affecting the cost and availability of FIBCs imported from India. Over the past several weeks, conditions have shifted across ocean freight, polypropylene raw materials, and U.S. import tariffs. While product supply remains available, these developments are creating increased volatility in both pricing and lead times. We want to provide our customers with visibility into what we are seeing and how these conditions may impact upcoming orders.
Ocean Freight: Capacity Tightening & Rates Increasing
Ocean freight conditions from India to the United States have tightened considerably. Carriers are currently experiencing significant vessel-space constraints, with contract capacity becoming increasingly difficult to secure. Some freight providers have reported that carriers are fully booked and are currently offering spot-market pricing rather than guaranteed contract rates. These constraints are expected to continue through August. The immediate result has been a significant increase in freight costs on certain India-origin shipments, along with less certainty surrounding booking availability and sailing schedules. We recommend that customers provide as much visibility as possible on upcoming requirements so production and transportation can be planned well in advance.
Polypropylene Resin: Increased Pricing Volatility
Geopolitical instability in West Asia is creating additional uncertainty in polypropylene raw-material markets. Several of our manufacturing partners in India have shortened quotation-validity periods in response to changing resin costs and availability. In some cases, manufacturing quotes that historically remained open for extended periods are now valid for approximately one week. This does not necessarily mean resin prices will increase continuously, but it does mean manufacturers are increasingly unwilling to guarantee raw-material pricing for extended periods while energy and feedstock markets remain volatile. Accordingly, customers may see shorter validity periods on new FlexSack quotations until raw-material markets stabilize.
Tariffs: India FIBC Rate Remains 18.4%
There was also an important change to the U.S. tariff structure effective July 24, 2026. The temporary 10% Section 122 surcharge expired and was immediately replaced by a new Section 301 forced-labor tariff structure. For FIBCs imported from India under HTS 6305.32.00.10, the overall tariff remains 18.4% (8.4% existing MFN duty + 10% Section 301 tariff). There is currently no net tariff-rate increase for India-origin FIBCs as a result of this transition. The important distinction is duration. Unlike the temporary Section 122 measure, the new Section 301 tariff does not carry the same statutory sunset. As a result, the current tariff burden should increasingly be viewed as an ongoing component of imported FIBC costs rather than a temporary surcharge.
What This Means for FlexSack Customers
Taken together, the current environment is creating greater short-term variability in the two major components of imported FIBC pricing outside of manufacturing conversion costs: raw materials and international transportation.
For customers, we currently recommend:
- Plan further ahead whenever possible. Capacity constraints make short-notice orders increasingly difficult to accommodate.
- Expect shorter quotation validity periods. Resin and freight markets are moving too quickly to guarantee certain cost components for extended periods.
- Provide forecasts early. Greater visibility allows FlexSack to secure production capacity and freight before requirements become urgent.
- Consider inventory programs for recurring requirements. Domestic inventory provides the greatest protection against overseas freight, production, and geopolitical disruptions. Explore our inventory management program, FlexSack-MP, here.
FlexSack maintains multiple manufacturing relationships and domestic inventory positions specifically to help mitigate these types of disruptions. We will continue monitoring freight, resin, tariffs, and geopolitical developments and communicate material changes as they occur.
If you have any additional questions, please don’t hesitate to reach out to your FlexSack sales rep, or contact us at Sales@FlexSack.com.