Major Shipping Lines Avoid Pakistani Ports After India Blocks Cargo Transit

Pakistan is facing a serious export crisis as global shipping lines begin avoiding its ports, following India’s recent move to block the transit of vessels carrying Pakistani cargo.

The ban has caused major disruptions, forcing shipping companies to reroute vessels and introduce emergency charges, further worsening the strain on Pakistan’s already struggling economy.

Officials confirmed that the restriction imposed by India last week has led to a growing backlog of export containers at key Pakistani terminals.

Carriers are now bypassing ports such as Karachi, Qasim, and SAPT (South Asia Pakistan Terminal), instead redirecting cargo through regional alternatives like Colombo, Dubai, and Port Klang.

According to the Pakistan Ship Agents Association (PSAA), several international shipping services that used to load Pakistan’s export containers under the “Remaining On Board (ROB)” system through Indian ports like Mundra and Nhava Sheva have now suspended these transits.

Shipping documents reviewed last week showed that at least four vessels were denied entry at Indian ports due to “Karachi onboard cargo.”

These ships were forced to change course to Sri Lanka and the United Arab Emirates. For instance, MSC Positano V-JP526R, operated by the Swiss company MSC (Mediterranean Shipping Company), was rerouted via Colombo, avoiding its scheduled call at Pakistan’s Qasim International Container Terminal (QICT) on May 6.

To handle the situation, MSC has introduced a new weekly feeder service named the “Pakistan-Colombo Shuttle Service,” aimed at transporting containers from Pakistan to Sri Lanka for onward shipping.

Meanwhile, French shipping giant CMA CGM has removed Karachi from at least four of its regular service routes and announced an Emergency Operational Recovery Surcharge (EORS) of up to $800 per container for shipments heading to the US, Latin America, and Australia.

The surcharge will be effective from May 15 to June 6, and the company cited service reliability and operational safety as the reasons.

Congestion is worsening by the day at Pakistan’s ports. Hundreds of export containers are waiting for shipment. Khurram Mukhtar, the Patron-in-Chief of the Pakistan Textile Exporters Association (PTEA), stated that there is a “big backlog” building up at terminals.

The textile industry, which brought in $17 billion in exports last year, is among the worst affected.

He mentioned that most shipping companies are adjusting their systems to shift cargo routing through Colombo, with schedule updates expected soon.

A senior official from one of the country’s main container terminals, who requested anonymity, said the rerouting has led to rising demurrage and detention costs, adding pressure on exporters.

“Shipping lines are charging consignees extra, and this is directly hitting Pakistan’s exports,” the official said.

Additionally, two of China’s top logistics companies-COSCO and OOCL, have also suspended their operations due to the geopolitical tensions.

COSCO released a notice halting all services to Karachi, warning that vessels already en route may be redirected to alternative ports like Malaysia’s Port Klang.

OOCL has also stopped new bookings to Karachi under its CIX1, CIX2, and CPX3 services, along with a rate hike of 1,000 yuan (about $138) per container.

Importers in Pakistan are facing similar issues. Karachi Port is currently facing container congestion worsened by a recent transporters’ strike. Per reports, some cargo has been struck at the port since May 1, with no space available for quick clearance.

Air freight operations too are experiencing temporary disruptions, adding more pressure on the country’s trade logistics system. PSAA officials said that India’s move to block Pakistani cargo transit is a violation of international trade conventions.

PSAA Chairman Mohammed A Rajpar said that New Delhi’s decision seemed like an attempt to discourage global shipping lines from calling at Pakistani ports and damage the country’s export recovery, which has been showing signs of improvement under the $7 billion IMF loan programme.

Pakistan, home to over 240 million people, is already dealing with economic challenges like inflation and currency instability.

References: arabnews, khaleejmag

Source: Maritime Shipping News