- $800 per unit surcharge will apply for routes from Pakistan to Europe, the Mediterranean, the US, and Africa, as well as from Asia to Pakistan
In response to escalating tensions between India and Pakistan, a major global shipping carrier has announced the imposition of an “Emergency Operational Recovering Surcharge” on all imports and exports to and from Pakistan, Business Recorder reported.
The move comes after the recent missile strike by India on Pakistani territory, which has heightened fears of a potential conflict between the two nations. Industry sources indicate that several shipping companies are contemplating suspending direct calls to Pakistani ports due to the escalating risk of war.
As a result, one of the world’s leading shipping firms, CMA CGM, has introduced the surcharge, which will apply to all cargo involved in trade with Pakistan. The surcharge amounts to $800 per unit for routes from Pakistan to Europe, the Mediterranean, the US, and Africa, as well as from Asia to Pakistan.
A lower surcharge of $300 per unit will apply to shipments from Europe, the Mediterranean, the US, Canada, and Africa to Pakistan and vice versa. The surcharge will be effective from May 15, 2025, for all shipments, with shipments originating from the United States, Latin America, and Australia subject to the charge from June 6, 2025.
In an official notice, CMA CGM confirmed that the surcharge was being introduced due to operational disruptions caused by the ongoing geopolitical situation in the region.
“Recent geopolitical developments in the region are significantly impacting our operations,” the company stated. The surcharge will apply to all cargo, including floating cargo, and is payable alongside freight charges for shipments with a sailing date on or after the specified dates.
With some shipping carriers continuing operations in the region, they have also been adding a “War Risk Premium” to freight rates, further increasing the cost of shipping to and from Pakistan. Additionally, changes in shipping routes and ports will lead to higher operational costs for both carriers and shippers.
In response to the ongoing conflict, Pakistan has imposed a ban on Indian flag carriers accessing its ports, citing national security and economic interests. The Ministry of Maritime Affairs announced this decision following India’s restrictions on Pakistani vessels. This ban, along with Pakistan’s earlier restrictions on the import, export, and transit of goods from India, is expected to further drive up shipping costs.
