India and Pakistan have prohibited each other’s cargo from transiting through their respective ports following the April 22 attack involving tourists in Kashmir. India issued a full ban on all goods originating in or exported from Pakistan, citing national security. The restriction took effect immediately on May 2. Pakistan countered with a similar ban but allowed shipments already in transit to proceed if covered by proper paperwork like bills of lading or letters of credit.

Ocean carriers serving trades out of the Subcontinent were caught off guard, raising contractual concerns. As a result, many are avoiding ports like Karachi and Port Qasim on Westbound routes to the U.S. and Europe. While direct trade between the two countries is minimal, third-country cargo in Indian networks has been impacted. There are no restrictions on foreign ships sailing through Indian or Pakistani waters, but some services are already being rerouted. For example, containers from Pakistan heading to India are now being offloaded in Colombo, Sri Lanka.

With tensions unlikely to ease soon, carriers may need to adjust network rotations to include alternate hubs like Colombo or Jebel Ali. Though regional transshipment can relieve some strain, this disruption adds to ongoing supply chain challenges, especially for stakeholders and cargo owners already navigating challenges related to the Red Sea crisis.

The fallout has extended to air cargo. Airlines like Lufthansa and Air France are avoiding Pakistani airspace. Both countries have closed their skies to each other’s carriers, resulting in longer flight routes and increased costs.

Source: The Loadstar