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Shipping lines start to bypass Karachi as India-Pakistan tensions rise

  • Some carriers have diverted from Karachi as India-Pakistan tensions escalate, with cargo being rerouted via Colombo and Singapore
  • New restrictions affect vessel movements, especially those carrying Pakistani cargo or calling at both Pakistani and Indian ports
  • Maersk says it will evaluate potential structural network changes, should restrictions extend

Container carriers are rerouting shipments and avoiding Karachi port amid rising India-Pakistan tensions, as safety concerns and emerging trade restrictions disrupt regional shipping operations

CONTAINER carriers have begun avoiding calls at Karachi amid escalating conflict between India and Pakistan.

The move marks the latest geopolitical disruption to hit the sector, albeit still limited in scope.

Several shipping lines have notified customers of cancelled Karachi port calls over safety worries as tensions mount between the nuclear-armed neighbours, according to freight forwarding sources.

CMA CGM is said to have cancelled calls at Karachi for two vessels — APL Florida (IMO: 9350032) and CMA CGM Shanghai (IMO: 9295220) — that had already departed as part of its Asia Subcontinent Express (AS1) service.

Cargo bound for the port will now be transhipped via Colombo, Sri Lanka, which is not part of the AS1 service.

 

 

According to Lloyd’s List Intelligence vessel-tracking data, the 7,471 teu CMA CGM Shanghai made a sudden southbound turn near Mumbai on May 3 and called at Colombo on May 8.

APL Florida reached Colombo on May 5 with its AIS destination showing India’s Jawaharlal Nehru port. Mundra and Karachi were the subsequent ports of call based on the original published rotation.

The trajectory of following vessels in the string remains unclear.

Meanwhile, Zim’s regional shipping unit Gold Star Line informed clients it halted all Karachi-bound cargo bookings “due to tensions between India and Pakistan”. Goods already dispatched from Shanghai but yet to reach Karachi will be offloaded and transhipped via either Colombo or Singapore to the intended destination.

In an email statement, HMM said services between the two countries have been suspended, but bookings from a third nation to Karachi remain open.

Bilateral trade has already been barred by both sides as military clashes continue to ratchet up. Each blames the other for drone and missile strikes launched across respective borders.

Tensions hit dangerous levels after last month’s fatal terror attack on tourists in India-controlled Kashmir, a disputed region at the heart of historical hostilities between the adversarial neighbours.

 

 

 

In the absence of official guidance, Wilhelmsen Port Services offered guidelines in a newsletter today that it said will “likely apply under the evolving circumstances”.

These include potential restrictions on foreign vessels carrying Pakistan-origin cargo, which may be unable to call at Indian ports, as well as limitations on ships discharging part of their cargo in Pakistan before proceeding to India.

Maersk in a statement said it is closely tracking the fluid situation regarding India-Pakistan trade and shipping restrictions.

“Maersk does not facilitate the movement of cargo between India and Pakistan that originates from either country and is destined for the other country.

“However, in light of the developing restrictions, Maersk is actively realigning cargo movement to ensure full compliance with all governmental directives while minimising disruption to our customers’ supply chains.”

That said, the company also stated if tensions and restrictions are prolonged, it will “evaluate potential structural changes” to its network.

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