India’s Ban on Ships Carrying Pakistani Cargo: A Strategic Blow Ripples Through Trade Routes

 

In a significant development impacting both geopolitics and the Indian Ocean, India has implemented a ban on ships carrying Pakistani cargo. This decision has created considerable disruption in regional supply chains. What started as a response to the Pahalgam terror attack has escalated into a major logistics and economic challenge, particularly for Pakistan.

 

⚓The Ban: A Strategic Move Hidden in Red Tape 

As of May 2, 2025, India has prohibited vessels transporting goods to or from Pakistan from docking at its ports. This includes all direct and transhipped cargo, even if it goes through third-party countries. Although this ban is based on national security concerns, it aims to create economic pressure without engaging in military action. This demonstrates a modern approach to geopolitical strategy.

 

The Ministry of Commerce and Industry announced that no ships carrying Pakistani imports or exports, regardless of their flag or transport route, can enter Indian waters. For shippers and carriers, this means they must reroute ships, change schedules, and recalculate shipping costs.

 

⚓Consequences: Delays, Costs, and Commercial Tension 

Pakistan, already in a precarious economic situation, has faced another setback. With Indian ports off-limits, cargo is now being rerouted through Colombo, Jebel Ali, Dubai, and other regional hubs. While this keeps trade operational, it introduces multiple challenges:

 

⚓Freight Delays: Average shipping times for cargo bound for Pakistan have increased by 30 to 50 days. Goods that once moved smoothly through the Subcontinent now face delays on congested alternative routes.

 

⚓Rising Costs: Major shipping companies like MSC and CMA CGM have imposed surcharges of $300 to $800 per container, along with greater insurance costs due to the risks associated with the new routes.

 

⚓Terminal Congestion: Ports in Pakistan, such as Karachi and Port Qasim, are experiencing a backlog of containers because turnaround times have slowed and connectivity is limited.

 

⚓Industry Fallout: Pakistan’s textile sector, which relies on quick exports and raw material imports, is seeing its operational costs rise. Exporters report that while their volumes remain stable, profit margins are shrinking.

 

Global Carriers Adjust 

Shipping companies have quickly adapted their operations. While they continue to serve Pakistan, they now prioritize transhipment ports outside India's jurisdiction. Ports like Colombo, Salalah, and Jebel Ali are becoming central to this adjusted shipping network. However, these ports are already handling heavy traffic and are struggling to meet the increased demand.

 

India, for its part, remains largely unaffected commercially, with its extensive port infrastructure and diverse trade partners protecting it from significant fallout.

 

⚓The Bigger Picture: A Maritime Strategy 

This situation extends beyond just shipping delays. It reflects an ongoing game of maritime diplomacy.

 

By denying port access, India has effectively cut off Pakistan from one of the region's most efficient logistics networks. This was a deliberate decision—not an act of war, but a means of economic isolation. The timing is also strategic. With global supply chains under strain and Pakistan's foreign reserves dwindling, India's action is both punitive and disruptive.

 

Pakistan may turn to China’s Belt and Road Initiative or look west to Iran and the Gulf, but these adaptations are not straightforward. While ports can change, rebuilding trust and efficiency takes time.

 

What’s Next? 

The future is uncertain. If the ban continues, Pakistan will have to rethink its trade strategies, possibly relying more on land routes or increasing dependence on China. However, such changes could lead to more geopolitical complications, especially as the Indian Ocean becomes increasingly competitive.

 

India has communicated a clear message: its ports may be open to the world, but they are not neutral when national security is at risk.

 

⚓Conclusion: A Port Closed, A Door Shut 

India's ban on ships carrying Pakistani cargo goes beyond administrative policy. It represents a calculated manoeuvre that is surprisingly effective. Although trade will persist, it will occur at higher costs and longer delays. The underlying message is clear: India's ports are strategic assets, not just commercial facilities.

 

Pakistan now faces a new chapter in trade diplomacy, where every container, route, and surcharge reflects the realities of broken relations and changing dynamics.


How Sri Lanka Can Take Advantage of the India-Pakistan Shipping Fallout

•  Become the Main Transhipment Hub for Pakistan

Since India banned ships carrying Pakistani cargo from its ports, Colombo Port and Hambantota Port are now the best alternatives.

 

• What Sri Lanka can do:

- Offer priority berthing slots to ships carrying Pakistani cargo.

- Reduce port fees and create a special logistics corridor for containers heading to Pakistan.

- Set up a "Pak Transit Zone" within Colombo International Container Terminal (CICT) or South Asia Gateway Terminals (SAGT).

 

• Why it works:

Pakistan needs fast, reliable, and neutral logistics partners.

Sri Lanka gains foreign exchange, increases trade volume, and improves its geopolitical position.