In the ever-evolving world of global trade, geopolitical events can have a profound impact on supply chains and shipping operations. The recent escalation in tensions between India and Pakistan has led to significant disruptions across the region’s trade routes.
Key Impacts on Shipping Operations
Ocean Freight Update
India:
- All trade (imports and exports) to/from Pakistan is currently restricted.
- Pakistan-flagged vessels are prohibited from transiting Indian territorial waters.
- Vessels carrying Pakistan-origin cargo that departed before the ban are not permitted to berth at Indian ports until that cargo is discharged elsewhere.
- Pakistan-origin containers, including empty, transhipment, and in-transit units, are now banned.
- Pakistan-owned or managed airlines are no longer permitted to use Indian airspace.
Pakistan:
- Imports, transits, and exports of Indian-origin goods, including those routed via third countries, are now prohibited.
- All exports to India transiting through Pakistan are also restricted.
Carrier Adjustments & Alternative Routing
- Ocean carriers are actively rerouting services to minimise supply chain disruption. Key alternate transhipment hubs include Dubai, Colombo, and Singapore.
- CMA CGM has suspended calls to Karachi until further notice.
- MSC is routing all Pakistan cargo via Colombo. Stranded Pakistan cargo in Indian ports (Mundra and Nhava Sheva) may still be picked up, but no new Pakistan-bound cargo will be accepted.
Air Freight Update
- Most airlines are rerouting flights to avoid Pakistan’s airspace.
- Air India has temporarily suspended flights on its Amritsar-Gatwick and Delhi-Tel Aviv routes.
- Airports near the Pakistan border in India (including Srinagar, Amritsar, Jammu, and Leh) have been closed to civilian flights, impacting both domestic and international cargo.
- Major international carriers like Lufthansa, British Airways, Air France-KLM, and Emirates are rerouting flights over the Arabian Sea.
Additional Challenges
Increased Customs Scrutiny
Shipments with Indian routing or documentation may experience delays during customs clearance at Pakistani ports, especially for perishable goods.
Cross-Border Closures
All official land trade routes between India and Pakistan have been suspended, halting overland cargo movement between the two nations.
Port Congestion Risks
Major ports, including Karachi and Port Qasim, are experiencing congestion due to rerouted shipping traffic.
Navigating the Challenges
Understanding these disruptions is crucial for businesses engaged in trade in South Asia. Our team closely monitors the situation and works directly with carriers and local agents to ensure continuity wherever possible. If you have any questions or concerns, please get in touch with our team.
Information in this blog post is accurate as of May 8, 2025. Given the evolving nature of the situation, we advise readers to stay updated with the latest news and regulatory announcements.