Shipping lines hike fees as Pakistan-India tensions disrupt trade

KARACHI: Shipping companies have begun imposing high freight charges under the label of ‘operational recovery charges’ on Pakistani importers and exporters amid escalating geopolitical tensions.

Following the Pahalgam incident, rising tensions between India and Pakistan have severely disrupted the country’s external trade, with shipping lines forced to reroute cargo.CMA CGM, a major global shipping line, has issued a notice regarding the increase in freight charges. “Immediate implementation of an emergency operational recovery surcharge (EORS) on all exports and imports to and from Pakistan will be effective from May 15, 2025,” the company announced.

It said that the move was necessary due to ongoing geopolitical developments in the region, which have significantly impacted its operations, adding that the surcharge is essential to maintain the continuity, safety and reliability of service.

According to the notice, a maximum surcharge of $800 per container has been imposed on shipments from Pakistan to Europe, the Middle East, the US, and Africa, as well as on shipments from Asia to Pakistan.

Exporters and logistics providers confirmed to The News that shipments are now facing significant delays, while freight charges have seen a sharp increase.Pakistan’s access to key international markets via India’s Mundra Port -- a frequent route for shipments to Europe -- has effectively come to a halt.

Businesses have voiced growing concern over rising costs and delivery challenges. “We are unable to meet our shipment deadlines, and clients abroad are becoming anxious,” one exporter said.

Khurram Ijaz, a leading businessman, said the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has discussed the issue and plans to approach the government. However, he acknowledged that, given the current situation, shipping lines are compelled to take longer routes for cargo shipments.

Javed Bilwani, president of the Karachi Chamber of Commerce and Industry (FPCCI), urged the federal government to engage with shipping lines and request a review of the increased freight charges.

Importers also pointed to congestion at the Karachi Port, which has worsened since transit trade from India to Afghanistan was halted, leading to a backlog of containers. They reported that Pakistani importers’ cargo has also been offloaded at the Colombo Port as tensions between Pakistan and India have intensified.