ISLAMABAD: Pakistani industrialists have informed the government that they are facing shortages of raw materials due to the ongoing Middle East conflict, as well as disruptions in the transportation of imported cargo from ports, with consignments currently stuck at NLC yards due to road closures near the U.S. Consulate in Karachi.
Exporters and importers shared their concerns during a meeting of an inter-ministerial committee chaired by Federal Minister for Maritime Affairs Junaid Anwar.
Industrialists reported that shipping lines have begun imposing war surcharges on shipments that were already in transit before the outbreak of the conflict. They pointed out that west-bound cargo, which does not pass through conflict zones, is also being charged these surcharges without justification. Such unilateral measures significantly increase export costs and undermine Pakistan’s trade competitiveness.
Exporters also informed the meeting that insurers have withdrawn institute war clauses, leaving exporters and importers without war-risk coverage. This has exposed cargo owners to serious risks, including loss, diversion or damage to shipments without compensation, posing a major threat to Pakistan’s international trade flows.
The meeting was informed that force majeure notifications issued by shipping companies state that shipping lines bear no obligation to safeguard cargo during such circumstances and may off-load containers at the nearest available port. Stakeholders warned that such actions could result in contractual breaches and substantial financial losses.
Exporters further reported that some shipping lines are withholding Bills of Lading (BLs) until they recover outstanding charges from their agents. They termed this practice illegal, noting that it prevents exporters from presenting documents to banks, completing letters of credit (LC) transactions and fulfilling commitments with international buyers.
Participants requested the Ministry of Maritime Affairs (MoMA) to issue a notification clarifying that Bills of Lading cannot be withheld due to disputes involving third parties.
Importers also highlighted vessel berthing constraints at Port Qasim, forcing them to unload cargo at the Fauji Akbar Portia (FAP) terminal where stevedoring charges are significantly higher — around USD8 per ton compared to about USD3 per ton at Karachi Port — while also facing extended waiting times.
It was decided that the Ministry of Maritime Affairs would take up the issue of war-risk insurance surcharges and related concerns with Lloyd’s of London.
Exporters also proposed measures to address the insurance gap. They recommended that the government engage with P&I Clubs in London to facilitate vessel and cargo war-risk coverage, and establish a Pakistan-specific insurance support mechanism funded through the Export Development Fund (EDF) to compensate for the loss of insurance coverage.
Copyright Business Recorder, 2026
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