India-Pakistan conflict disrupts regional trade and shipping operations

MUMBAI : Heightened tensions between India and Pakistan have begun to significantly disrupt regional trade, as major global shipping lines suspend services to Karachi Port and reroute cargo to alternative ports.

Exporters and logistics providers report mounting delays and rising freight costs, exacerbating the strain on supply chains. Pakistan’s vital trade corridor through India’s Mundra Port—commonly used for European-bound shipments—has effectively been shut down.

Both nations have imposed mutual restrictions on cargo movements, prompting international carriers to avoid regional docking altogether.

Two major Chinese logistics companies, COSCO and OOCL, have suspended their operations in the region. COSCO, one of the world’s leading shipping firms, issued an official statement halting all cargo services to Karachi due to escalating conflict. The notice also warned that ships currently en route may be redirected to alternative ports such as Port Klang in Malaysia.

OOCL, meanwhile, has stopped bookings to Karachi under its CIX1/2/CPX3 services and introduced a rate increase of 1,000 yuan (approximately $138) per container.

Exporters in Pakistan have voiced growing concern over these developments. “We are unable to meet our shipment deadlines, and clients abroad are getting anxious,” said one exporter based in Sialkot.

Importers are facing similar challenges. Congestion at Karachi Port—already worsened by a recent transporters’ strike—is leading to delays in cargo collection. Containers unloaded as early as May 1 remain stuck due to limited space.

Air freight operations have also seen intermittent disruptions, adding further pressure on trade logistics.

With no resolution in sight, the ongoing conflict poses a significant threat to Pakistan’s trade continuity, jeopardizing both export obligations and import schedules.