India’s Port Ban on Pakistani Goods Triggers 30–50‑Day Delays, Freight and Insurance Costs Surge
On May 2, 2025, in response to the Pahalgam terror attack, India’s Directorate General of Foreign Trade and Directorate General of Shipping issued a comprehensive ban on all direct or indirect imports, transit, and anchorage of goods originating from or destined for Pakistan. The move, justified on national security grounds, has effectively barred Pakistani-flagged vessels from Indian ports and severely limited indirect routing options.
Industry sources in Pakistan report that mainline container vessels have ceased visiting Pakistani ports, forcing shippers to rely on smaller, slower feeder vessels. This has created transit delays of 30 to 50 days, compared to established schedules. The disruptions have naturally led to a steep rise in freight charges as cargo is rerouted through longer and more complex logistical chains.
The suspension of mother vessel services has increased dependence on more frequent feeder voyages, raising per-unit shipping costs. Exporters also report elevated insurance premiums, with maritime insurers upgrading the region’s risk level and charging surcharges for war and geopolitical exposure. Despite higher shipping and insurance costs, some exporters argue that export volumes remain largely unchanged.
Pakistan relies heavily on imported inputs for its manufacturing and textile sectors. Industry leaders warn that extended delays and added costs in freight and insurance could cascade through the economy, impacting production and costs for downstream industries. The lack of port access has also led to container backlogs and higher demurrage charges, straining port operations in Karachi and Port Qasim.
Formal trade between India and Pakistan has been in decline since 2019, falling from US $2.41 bn in 2018 to US $1.2 bn in 2024, while exports from Pakistan to India dropped from $547.5 m to a mere $480,000 over the same period.
Analysts view India’s port restrictions as part of a broader policy response to rising tensions following terror incidents. They cite past measures such as the imposition of a 200% import duty in 2019 following the Pulwama attack. These moves emphasize security concerns but come at a significant cost to commercial flows and regional supply chains.
Maritime and logistics firms warn that delays exceeding 30 days will disrupt inventory cycles, raise warehousing costs, and compel importers to seek alternate routing via third‑country hubs—a strategy that can further inflate freight and insurance expenditures. Global traders are closely monitoring the situation, requesting assurances from Indian suppliers, although many believe the issue has not escalated into a systemic crisis.
India’s May 2 ban on Pakistani-origin goods has introduced major operational complications into regional maritime logistics. The resulting delays of 30–50 days, skyrocketing freight and insurance costs, and mounting container backlogs in Pakistan reflect the tangible economic cost of security-driven trade measures. While exports may remain marginally affected, the broader implications for manufacturing, supply continuity, and port operations caution stakeholders to reassess route planning, inventory management, and risk exposure.
