KARACHI: Global shipping carrier has announced imposition of an “emergency operational recovering surcharge” on all imports and exports to and from Pakistan as geopolitical tensions between India and Pakistan continue to escalate.
Since the incident in Pahalgam on April 23, tensions between Pakistan and India have sharply escalated, fueling fears of a potential war following a reported missile strike by India on Pakistani territory.
Therefore, industry sources said that amid escalating tensions, several shipping lines are now considering suspending direct calls to Pakistani ports due to increasing war risk concerns and a leading shipping company has announced to impose “Emergency Operational Recovering Surcharge” up to $800 on import and export cargo for Pakistan.
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An amounted of $800 per unit will be imposed as Emergency Operational Recovering Surcharge for routes from Pakistan to Europe, Mediterranean, US, and Africa and from Asia to Pakistan. While, $300 per unit surcharge will be applies on cargo from Europe, Mediterranean, US, Canada, and Africa to Pakistan and from Pakistan to Asia.
In an official notice issued by CMA CGM, one of the world’s leading shipping and logistics firms, the company confirmed the imposition of the surcharge, citing operational disruptions resulting from the ongoing conflict.
“Recent geopolitical developments in the region are significantly impacting our operations,” the notice read. “To ensure that we continue to provide the high level of service our customers expect, we have had to adapt and adjust our services accordingly.”
Effective from May 15, 2025 (and June 6, 2025 for shipments originating from the United States, Latin America, and Australia), the surcharge will apply to all cargo without exception, both incoming and outgoing, involving Pakistan.
The surcharge is payable with the freight and applies to both floating cargo and entries with a sailing date on or after the specified dates. Canadian exports to Pakistan will be subject to the charge starting May 15, while US exports will follow on June 6, 2025. Those carriers that do continue operations are reportedly adding a War Risk Premium to freight rates, significantly raising the cost of shipping to and from the region. The change of routes and port will result in higher operational costs for carriers and shippers alike, they added.
The company also warned that ocean freight rates, routing, and transit times may be subject to change, although revised cost structures and space allocations are yet to be disclosed.
Pakistan has already imposed a ban on Indian flag carriers from accessing its ports, aimed at protecting national security, economic interests, and maritime sovereignty. The decision was announced by the Ministry of Maritime Affairs following India’s recent restrictions on Pakistani vessels.
According to a notification issued by the Ministry of Maritime Affairs (Port and Shipping Wing) in view of the recent development of maritime situation with neighboring countries and to safeguard maritime sovereignty, economic interest and national security, Pakistan has decided to enforce some measures with immediate effect. As per instruction issued by the ministry, Indian flag carriers shall not be allowed to visit any Pakistani Port and Pakistani flag carriers shall not visit any Indian Port.
Industry sources said that this ban will also increase the cost of shipping. In addition, last week the government of Pakistan had also imposed a ban on the import, export, and transit of goods of Indian origin including those routed through third countries citing national security and public interest.
The imposition of the surcharge will directly impact Pakistan’s exports, which are already struggling to remain competitive in global markets amid rising costs and economic challenges.
Copyright Business Recorder, 2025
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