A recent escalation in tensions between India and Pakistan has led to significant disruptions in regional shipping networks, with Pakistan bearing the brunt of the impact. Following a deadly attack on Hindu tourists in Kashmir, India imposed a ban on Pakistani-flagged ships from entering its ports, citing national security concerns. In a reciprocal move, Pakistan barred Indian-flagged vessels from its ports and territorial waters. These mutual prohibitions have effectively severed maritime trade routes between the two nations, forcing a rapid reconfiguration of cargo flows across South Asia.
For years, many container ships connected Pakistan’s trade through Indian ports, offering a practical transshipment route. However, with those links now off the table, the landscape is quickly shifting.
On the Indian side, there is some short-term upside. With Pakistani containers no longer competing for space on sailings, Indian exporters are getting access to more slots and greater flexibility when loading cargo. That could help streamline operations for Indian shippers who have been dealing with tight capacity and inconsistent schedules.
However, it is not all smooth sailing from here. The disruption is also putting pressure on other parts of the regional shipping network. MSC, one of the world’s largest shipping lines, has announced that it will start routing Pakistani exports to the US East Coast through Colombo. This move is expected to increase container volumes at the Sri Lankan hub, which is already busy serving South Asia. That could mean delays, tighter space, and potentially higher rates for Indian exporters relying on Colombo for connectivity.
For Pakistan, the challenges are even more serious. The loss of Indian transshipment options and overland access is making it harder to bring in key imports—especially raw materials and components needed by local industries. As a result, sectors like textiles and agriculture, which rely heavily on exports, are likely to face slowdowns. Production delays, higher costs, and missed shipments could impact Pakistan’s ability to compete in global markets.
In the near term, rerouting cargo and finding new transshipment partners will be critical. Ports like Jebel Ali and direct services through the Arabian Sea might offer some relief, but building reliable alternatives takes time. We will continue to closely monitor any changes in these regional trade lanes. In the meantime, reach out if you have questions regarding these trade lanes.
By Sabri Aminuddin, Route Development Manager, South Asia