India Ban on Pakistan Cargo Drives Up Freight Costs and Transit Times

India’s ban on vessels carrying goods originating in or destined for Pakistan, in force since 2 May 2025, is lengthening delivery times and increasing freight charges for Pakistani businesses. Shipping lines have rerouted traffic away from Indian trans-shipment hubs, forcing importers to rely on smaller feeder vessels that add 30–50 days to transit times, according to the Karachi Chamber of Commerce and Industry. Exporters say shipping and insurance premiums have risen, though they describe the overall impact on outbound volumes as limited for now. The disruption follows the Pahalgam terror attack and builds on earlier measures—including a 200 % duty on Pakistani imports after Pulwama in 2019—that have pushed formal bilateral trade down to about $1.2 billion last year from $2.41 billion in 2018. Indian authorities are tightening enforcement. Under “Operation Deep Manifest,” the Directorate of Revenue Intelligence recently seized 39 containers valued at more than ₹9 crore that were allegedly rerouted through the United Arab Emirates to disguise Pakistani origin. New Delhi says the restrictions are necessary to prevent security risks, while Pakistani industry groups warn that prolonged shipping delays could strain already fragile supply chains dependent on imported inputs.