Port ban on Pakistani cargo triggers surge in freight costs and shipping delays: Report

India's recent port ban on Pakistani cargo has sent shockwaves through the freight forwarding sector, causing significant delays and driving up shipping costs. Following the April 22 terror attack in Pahalgam, India enforced a strict ban on May 2 that prohibits the direct or indirect import and transit of goods originating from or exported by Pakistan.
This policy shift has led to major logistical challenges for Pakistani importers and exporters. Industry experts report that mother vessels have stopped docking at Pakistani ports due to the ban, resulting in shipment delays of 30 to 50 days. As a result, traders have been forced to rely on more expensive feeder vessels with limited cargo capacity, sharply increasing freight costs.
Additionally, rising insurance premiums and complex routing have added financial pressure on exporters, further straining the freight forwarding industry. Despite these difficulties, some analysts note that the broader impact on trade has been somewhat cushioned by alternate regional supply chains.
Pakistan’s export economy heavily dependent on imported raw materials for value addition, has been hit hard. With stringent import controls already in place to preserve foreign exchange reserves, the current disruptions could exacerbate economic instability.
The India-Pakistan trade relationship has deteriorated significantly since India imposed a 200% duty on Pakistani goods after the 2019 Pulwama terror attack. Bilateral trade fell from $2.41 billion in 2018 to just $1.2 billion in 2024. Pakistan’s exports to India plummeted from $547.5 million in 2019 to a mere $480,000 in 2024.
As the India port ban on Pakistani cargo continues, stakeholders in the freight forwarding sector are urging both governments to seek diplomatic solutions to avoid long-term regional economic fallout.