Ind–Pak crisis disrupts freight traffic in South Asia

KOLKATA : India bans the import of goods from Pakistan and the handling of Pakistani cargo in its harbours. Pakistan stops border trade and closes airspace. Shipping companies react with route changes and transit ports such as Colombo and Salalah gain in importance.

On 3 May 2025, the Indian government issued a ban on the import of goods from Pakistan. The handling of Pakistani cargo in Indian ports is also prohibited with immediate effect. Ships bound for Pakistan are no longer allowed to enter Indian ports.

These measures are in response to a deadly attack in the disputed region of Kashmir, in which at least 26 tourists were killed. India holds Pakistan responsible for the attack. Islamabad denies any involvement and warns against Indian military action.

As a countermeasure, Pakistan stopped border trade on 4 May. Since then, the airspace has been closed to Indian aircraft. Following Indian attacks on Pakistani territory, Pakistan temporarily closed its airspace completely.

The trade restrictions do not apply to shipments whose Bill of Lading (B/L) or Letter of Credit (L/C) was issued before the regulation came into force.

Impact on The Sea Freight Market

These developments affect numerous exports as well as hundreds of import containers that are travelling from China and other countries to Pakistan via India and are already at sea. Several ships are currently waiting outside the harbours with cargo for both countries.

The shipping companies have asked the authorities for information quickly and have taken individual measures in the meantime:

MSC

MSC is using Colombo in Sri Lanka as a new transhipment centre. All cargo is being rerouted there. The shipping company has received official clearance from India: Stranded cargo from Pakistan may be picked up in Mundra and Nhava Sheva. However, new cargo from Pakistan will no longer be accepted there.

CMA CGM

CMA CGM is sending some ships back to Pakistan. The cargo is unloaded there and shipped again later.

According to CMA CGM, a feeder service to a nearby transhipment centre is possible.

Maersk and Hapag-Lloyd
Maersk is actively reviewing its routes. They want to ensure that all regulations are adhered to. Possible consequences are diversions or schedule changes. If the restrictions last longer, the shipping company may make structural changes to its maritime network. This could mean adjusting routes, hubs or even the entire East-West network.

Maersk and Hapag-Lloyd continue to accept bookings via Salalah with no disruptions or changes.

The situation is intensified by an earlier strike in Pakistan. It was triggered by government plans to build new canals along the Indus River. This blocked important transport routes between the north and south of the country. Various shipments arrived late at the port of Karachi and were not loaded onto the booked ships. Instead, they were rebooked onto other ships. As these ships have not called at the port of Karachi since the trade restrictions were imposed, many containers are still in the harbour. The current lack of ship capacity is leading to rebookings, delays and rollovers.

Source : IFB