Pakistan explores dedicated container vessel to cut exporters’ shipping costs
Listen2 min
Read aloud by your device’s built-in synthetic voice, not a recording. Needs a browser that can read aloud.
✧ GENERATE BRIEFING
Chicago corn futures declined for a fourth consecutive session, falling 0.05 percent to $5.50 per bushel as higher-than-expected US stockpiles raised concerns over abundant supplies. Data from the US Department of Agriculture indicated that domestic corn stocks reached 2.095 billion bushels on September 1, representing a 35 percent year-on-year increase to a seven-year high that significantly exceeded market expectations of 1.918 billion bushels. This larger inventory reflects robust production from the 2025 record harvest as new crops enter the commercial market. Concurrently, wheat futures fell 0.15 percent to $6.74-3/4 per bushel, while active soybean contracts dropped 0.29 percent to $12.89-1/4 per bushel amid expectations of reduced US crushing activity. Additionally, Russian consultancy Sovecon lowered its 2026/27 grain export forecast to 44.7 million metric tonnes due to ongoing regional port closures.
ISLAMABAD: The government is considering leasing or purchasing a dedicated container vessel to help Pakistani exporters deal with higher shipping costs caused by longer regional maritime routes.
Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry discussed the proposal with a three-member delegation of exporters, who highlighted the impact of changes in shipping routes on transportation costs and delivery times to European and US markets.
The delegation included Shahzad Asghar Ali, CEO of Style Textile; Benedikt Birner, vice president Global Adidas; and Saqib Rafique, senior director of Sourcing Operations at Adidas. Pakistan National Shipping Corporation (PNSC) CEO Syed Jarar Haider Kazmi also participated in the meeting online.
The exporters said longer shipping routes were putting Pakistani businesses at a disadvantage compared with regional competitors that have relatively easier and more direct access to key international markets. The additional distance has increased both freight expenses and delivery times.
Junaid Chaudhry said PNSC could consider leasing or purchasing a container vessel if exporters could provide sufficient cargo volumes to make the operation commercially viable.
To examine the proposal, the minister formed a working group comprising representatives from the Ministry of Maritime Affairs, PNSC and exporters. The group will assess the feasibility of operating a dedicated container vessel and examine other measures to improve shipping connectivity.
The working group will also look at ways to reduce transportation costs and facilitate Pakistani exports to international markets. Exporters agreed to consult other businesses and submit additional proposals for consideration.
The initiative comes as Pakistani exporters face higher logistics costs and longer transit times because of changes in regional shipping routes. A dedicated shipping arrangement, if found commercially viable, could provide exporters with another option for accessing international markets and improving supply-chain reliability.
