Foreign Shipping Lines Impose Up to $800 Freight Surcharge on Pakistan Cargo
Foreign shipping lines have begun levying Emergency Operational Recovery Surcharges (EORS) of up to $800 per container on Pakistan-bound and outbound cargo, significantly impacting the country’s international trade routes.
Starting May 15, several top container carriers have introduced EORS ranging from $300 to $800 per unit on all shipments to and from Pakistan, affecting trade with Europe, the Mediterranean, the United States, Africa, and Asia. The surcharge for destinations including the US, Latin America, and Australia will remain effective until June 6.
Read more: https://theneutral.pk/pakistans-response-to-india-a-critical-crossroad-for-national-security/
Carriers Reroute Cargo Amid Tensions
To manage operational challenges and rising costs, major sea freight carriers have started rerouting shipments via Colombo and Salalah ports. Notably, CMA CGM has implemented an $800 emergency surcharge per container on cargo headed to Europe, the US East Coast, Africa, and the Middle East. Other shipping lines are expected to follow suit, citing increased costs of feeder operations and regional uncertainties.
Indian Measures Disrupt Pakistan’s Maritime Trade
According to the Pakistan Ship’s Agents Association (PSAA), recent Indian trade restrictions are designed to discourage port calls to Pakistan. In response, foreign carriers are recalibrating routes to ensure service continuity. Despite the disruption, Karachi Port Trust (KPT) has confirmed that port operations are proceeding normally with no congestion reported.
Pakistan Responds to Indian Ban on Imports and Transit
In a related development, Pakistan has banned Indian flag carriers and barred Pakistani ships from calling at Indian ports. However, according to a Ministry of Maritime Affairs order issued on May 3, these restrictions do not apply to Reshipment on Board (RoB) cargo. Transit shipments of Indian-origin goods passing through Pakistani ports are still permitted.
India recently escalated trade restrictions, banning the import and transit of all Pakistani goods, disrupting 6,000–7,000 TEUs (twenty-foot equivalent units) of weekly exports from Karachi, dealing a blow to exporters and shipping agents alike.
