Indo-Pak conflict chokes trade routes

May 08, 2025 (MLN): Amid intensifying tensions between India and Pakistan, regional trade flows have taken a major hit as global shipping lines have suspended operations to Karachi and are rerouting cargo. 

Exporters and logistics providers have confirmed to Mettis Global that shipments are now facing significant delays, while freight charges are witnessing a sharp upward revision.

Pakistan’s access to key international markets via India’s Mundra Port, frequently used for shipments to Europe, has effectively come to a standstill.

Both countries have enforced restrictions on each other’s cargo, leading to growing reluctance among international carriers to engage in regional docking.

Two major Chinese logistics firms have reportedly halted services in the region. Cosco, one of the largest operators, has issued an official notice confirming the suspension of all cargo transport to Karachi due to the conflict.

"Given the prevailing war situation, shipments to Karachi are suspended until further notice," the notice reads. 

Cosco also cautioned that vessels already en route may be rerouted to alternate ports, such as Port Klang in Malaysia.

Similarly, OOCL has discontinued bookings for Karachi under its CIX1/2/CPX3 services, while implementing a rate hike of 1,000 yuan ($138) per container.

Exporters have expressed growing concern over the rising costs and delivery challenges. "We are unable to meet our shipment deadlines, and clients abroad are getting anxious," shared one Sialkot-based exporter.

 Importers shared similar sentiments, noting that congestion at Karachi Port, exacerbated by last month’s transporters’ strike, is worsening the delays. Containers unloaded as early as May 1 remain uncollected due to space constraints.

Air freight operations are also under stress, with intermittent disruptions reported.

The evolving conflict poses serious risks to Pakistan’s trade continuity, with logistics bottlenecks threatening to impact export commitments and import planning alike.

Copyright Mettis Link News