India’s Port Ban On Pakistani Cargo Raises Freight Costs, Delays Shipments

India’s recent move to ban all ships carrying goods originating from or exported by Pakistan from using its ports has led to a sharp rise in freight charges and major shipping delays, according to Pakistani industry officials quoted in the Dawn newspaper.

The ban came into effect on May 2, 2025, after the April 22 terror attack in Pahalgam, and applies to both direct and indirect import or transit of Pakistani goods.

Pakistani traders say this ban has created serious logistical hurdles. Large mother vessels are no longer docking at Pakistani ports due to the Indian restriction. As a result, importers are forced to rely on smaller feeder vessels, which are slower and more expensive.

According to Dawn, Javed Bilwani, President of the Karachi Chamber of Commerce and Industry, said that Pakistani shipments are now facing delays of 30 to 50 days. He also pointed out that transportation costs have gone up because feeder vessels are not only slower but costlier to operate.

Logistics and insurance costs have increased due to the disruption. However, some traders believe the export business hasn’t been severely affected.

As reported by Dawn, textile exporter Aamir Aziz said that while insurance premiums have gone up, exports remain mostly unaffected because shipping costs were already high even before the current situation.

The situation is particularly concerning for Pakistan’s export sector, which relies heavily on imported raw materials for value-added goods. Pakistan already has strict import controls to protect its foreign exchange reserves. Any more disruption to the supply chain could have a bigger impact on the country’s economy.

India has also tightened enforcement to stop the illegal movement of Pakistani goods through third countries. News agency PTI reported that Indian authorities have launched multiple operations, including ‘Operation Deep Manifest’, to catch such violations.

Under this operation, India’s Directorate of Revenue Intelligence (DRI) has seized 39 containers that were falsely declared as UAE-origin. These containers, carrying over 1,100 metric tonnes of goods worth Rs 9 crore, were actually from Pakistan and had been transshipped via Dubai.

Investigations revealed financial trails connecting Indian importers to Pakistani exporters, and one partner of a trading firm involved in the scam has been arrested.

The Finance Ministry explained that this was a complex operation involving intermediaries in both Pakistan and the UAE to hide the real origin of the goods.

India had already imposed a 200% import duty on Pakistani goods after the 2019 Pulwama attack, effectively freezing formal trade relations.

According to PTI, bilateral trade between the two countries fell from $2.41 billion in 2018 to $1.2 billion in 2024. Pakistan’s exports to India dropped sharply from $547.5 million in 2019 to just $480,000 in 2024.

Indian authorities say that these restrictions are necessary to protect national and economic security and to prevent misuse of trade routes.

References: deccanherald, moneycontrol

Source: Maritime Shipping News