India's Ban on Pakistan-Linked Ships Raises Freight Costs, Delays Imports
An Indian ban on ships carrying Pakistani cargo, imposed after a recent terror attack, is reportedly causing significant trade disruptions for Pakistan. Importers there claim the measure has increased shipping times by 30-50 days and raised freight charges by forcing reliance on smaller feeder vessels. While the immediate impact on Pakistan's exports is said to be minimal, the disruption to supply chains for imported raw materials could have broader economic consequences for its value-added export industries.
Unpacked:
India imposed the ban following the April 22, 2025, Pahalgam terror attack. The measure is part of broader diplomatic and military escalations between India and Pakistan, targeting trade and transportation links in response to the incident.
Pakistani importers face longer shipping times—delays of 30-50 days—and higher freight charges. Since direct routes are blocked, they must use smaller feeder vessels and alternative ports, increasing costs and complicating logistics for critical imported raw materials.
Pakistan has implemented a reciprocal ban, prohibiting the import and transit of Indian-origin goods and barring Indian-flagged vessels from its ports. These measures mirror India’s restrictions and further disrupt bilateral trade and logistics.
Yes. While initial export impacts are limited, prolonged disruptions could harm value-added industries reliant on imported raw materials, potentially increasing production costs, reducing competitiveness, and causing broader economic consequences if supply chain issues persist.