KARACHI: Escalating military tensions in the Middle East and the reported closure of the Strait of Hormuz have triggered alarm across global shipping markets, with companies adopting precautionary measures and imposing war-risk surcharges that could significantly impact Pakistan’s trade and energy supplies.
The strategic waterway, which connects the Persian Gulf to the Gulf of Oman, handles nearly a quarter of the world’s oil shipments. Any prolonged disruption is expected to drive up crude oil and LNG prices, alongside sharply higher marine insurance premiums.
Chairman of the Pakistan Ships’ Agents Association (PSAA) Mohammad A. Rajpar warned that with a large portion of Pakistan’s trade routed through the Gulf region, delays and additional costs are inevitable. He also cautioned about potential disruptions to LNG and oil supplies.
Karachi Gateway Terminal Limited (KGTL) announced that shipping lines operating Gulf services have temporarily suspended bookings from Pakistan. As a result, KGTL has halted acceptance of new export cargo destined for Gulf services until further notice.
Global shipping giants have also responded. Hapag-Lloyd confirmed a booking stop for cargo moving from Africa to the Upper Gulf region, including the UAE, Iraq, Kuwait, Qatar and Saudi Arabia’s Eastern Province. The company has also introduced a contingency surcharge on shipments between the Red Sea and North Europe, the Mediterranean and North Africa, effective March 3. The surcharge is set at $1,500 per standard container (TEU) and $3,500 for reefer and special containers.
Similarly, Maersk announced it would pause Trans-Suez sailings through the Bab el-Mandeb Strait, rerouting vessels on its Middle East-India to Mediterranean and US East Coast services around the Cape of Good Hope. The company said it would resume normal operations once security conditions stabilise.
DP World temporarily paused operations at Jebel Ali Port as a precautionary measure, while Mediterranean Shipping Company (MSC) suspended worldwide bookings destined for the Middle East. COSCO Shipping Lines has advised vessels in the Gulf to proceed to safe waters and instructed inbound ships to reduce speed or await further guidance.
President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Atif Ikram Sheikh called for emergency measures to protect Pakistan’s trade and industrial sectors. He warned that geopolitical instability poses a serious threat to the country’s fragile economic recovery and export competitiveness.
Pakistan remains heavily dependent on Gulf energy imports, purchasing over $5.7 billion worth of crude oil annually—primarily from Saudi Arabia and the UAE—while total petroleum imports, including refined products, reached $10.71 billion in FY25.
Industry leaders fear freight rates on major routes could surge by up to 300 per cent, while war-risk insurance premiums have already climbed. Transit times to key export markets in the EU, UK and United States may extend by 15 to 20 days due to rerouting, raising input costs for manufacturers and undermining the price competitiveness of Pakistan’s textile and industrial exports.
Story by Aamir Shafaat Khan
