Pakistani exporters demand urgent government intervention as shipping costs surge by over 200%, threatening exports and global competitiveness.
KARACHI: Pakistani exporters have called for immediate government intervention after shipping costs surged by more than 200%, driven by disruptions linked to the Iran-US conflict, rising war-risk insurance premiums and higher fuel costs.
According to exporters, the sharp increase in freight charges is threatening the competitiveness of Pakistani products in international markets, particularly the United States.
Ismail Suttar, founding chairman of the Salt Manufacturers Association of Pakistan (SMAP), said the cost of shipping a container from Karachi to New York had jumped dramatically from around $2,000 to between $8,000 and $9,000.
He warned that exporters could struggle to absorb such a substantial increase, potentially resulting in lost orders and reduced competitiveness in one of Pakistan’s major export markets.
“Shipping rates have increased globally, but the increase on some routes from Pakistan is disproportionately high,” Suttar said, urging the government to develop an emergency strategy to protect exporters from the impact of soaring freight charges.
The situation has also affected regional shipping routes. Freight charges between Karachi and Jebel Ali, which previously ranged from $100 to $200 per container, have reportedly climbed to around $4,000 to $5,000. Exporters said reduced vessel availability had further intensified the supply-demand imbalance.
Pakistani exporters are also facing a significant disadvantage compared with regional competitors. Shipping a container from Vietnam to New York currently costs approximately $3,000 to $4,000, compared with up to $9,000 from Pakistan.
“This creates a difference of around $5,000 for Pakistani exporters and puts them at a clear disadvantage when competing for international orders,” Suttar said.
He also highlighted Pakistan’s limited shipping infrastructure as a structural weakness, noting the absence of an effective national shipping carrier and a sufficiently large containerised cargo fleet.
Suttar called for the formation of an inter-ministerial committee involving exporters, shipping companies and relevant government departments to examine the extraordinary rise in freight charges and formulate immediate relief measures.
He cautioned that failure to respond quickly could reduce export orders, put additional pressure on Pakistan’s foreign exchange earnings and weaken the country’s position in global markets.