Indian Ban On Ships Carrying Pakistani Goods Cause Increased Freight Prices & Longer Transit Times

Per a research report published recently, India’s ban on vessels carrying Pakistani goods from anchoring at its port facilities has led to a rise in freight prices and longer transit times.

After the terror attack in Pahalgam on April 22, 2024, the ban, which went into effect on May 2, 2025, prevents the direct or indirect import or transit of cargo produced in or exported from Islamabad.

Importers from Pakistan have stated that the development has led to several logistical problems.

Analysts say that because of the restriction, mother ships can no longer arrive at Pakistan’s ports, which leads to delays in shipment by 30 to even 50 days.

Traders have resorted to using feeder ships, which are expensive and are driving up import prices.

The cost of shipping and insurance has also risen, according to exporters.

The export sector of Pakistan has been hit as it depends on imported raw material. Additionally, th supply chain disruptions have wider economic effects as the government maintains strict import controls to preserve the foreign exchange reserves.

India levied a 200 per cent import charge on Pakistani items after the Pulwama attack in 2019, after which normal trade relations between the two countries came to a halt.

Bilateral trade decreased significantly from $2.41 billion in 2018 to $1.2 billion in 2024. Between 2019 and 2024, Pakistani exports to India fell from $547.5 million to just $480,000.

References: Logistics Insider, Deccan Herald