Shipping Costs Jump 200% As Iran War Hits Pakistani Exporters.
✧ GENERATE BRIEFING +
Shipping and freight costs for Pakistani exporters serving United States markets have skyrocketed by over 200% on key trade routes, driven by severe maritime disruptions and war-risk premiums linked to the ongoing conflict involving Iran. Ismail Suttar, founding chairman of the Salt Manufacturers Association of Pakistan (SMAP), reported that container freight rates for a shipment from Karachi to New York—previously ranging around $2,000—are now commanding between $8,000 and $9,000. This staggering inflation places local industries at a massive competitive disadvantage against regional rivals; for comparison, a competing container shipment originating from Vietnam to New York costs between $3,000 and $4,000, creating an insurmountable deficit of roughly $5,000 per container for Pakistani exporters. Furthermore, regional logistics have deteriorated sharply, with freight charges on the critical Karachi-Jebel Ali feeder route multiplying from $100–$200 up to $4,000–$5,000 alongside a shrinking availability of commercial vessels. Suttar cautioned that these compounding logistics barriers threaten to price Pakistani goods out of international markets, eroding export orders and endangering national foreign exchange inflows.
Shipping costs for Pakistani exporters to the United States have surged by more than 200% on some routes, as disruptions linked to the Iran war push up freight, fuel and war-risk insurance costs.
Ismail Suttar, founding chairman of the Salt Manufacturers Association of Pakistan (SMAP), said a container shipment from Karachi to New York that previously cost around $2,000 is now being quoted at $8,000–$9,000.
The sharp increase is putting Pakistani exporters at a disadvantage compared with competing countries. A similar shipment from Vietnam to New York costs around $3,000–$4,000, creating a gap of roughly $5,000 per container for Pakistani exporters.
Freight charges on the Karachi-Jebel Ali route have also jumped from around $100–$200 to $4,000–$5,000, while vessel availability has declined, further tightening the market.
Suttar warned that the higher logistics costs could make Pakistani products less competitive in international markets, potentially resulting in lower export orders and pressure on foreign exchange earnings.
He urged the government to establish an inter-ministerial committee involving exporters, shipping companies and relevant government agencies to investigate the surge in freight rates and formulate immediate relief measures.
He also highlighted Pakistan’s lack of an effective national shipping carrier and sufficient containerised cargo fleet as structural weaknesses that become more visible during global supply-chain disruptions.
