India and Pakistan have imposed mutual bans on cargo transiting through their respective ports . This follows the April 22 attack involving tourists in Kashmir. India’s full cargo ban on all goods originating in or exported from Pakistan took effect on May 2. Pakistan countered with a similar ban, allowing only pre-cleared shipments already in transit to proceed.

Ocean carriers serving trades out of the Subcontinent were caught off guard, raising contractual concerns. As a result, Westbound services to Europe and the U.S. are now avoiding Karachi and Port Qasim. While direct trade between the two countries is minimal, third-country cargo in Indian networks has been impacted. Some shipments 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. 

The fallout has extended to air cargo. Both countries have closed their airspace to each other’s carriers, forcing airlines like Lufthansa and Air France to reroute, increasing costs and transit times.

Source: The Loadstar