Pakistan port leverages Iran war, handles a year’s worth of cargo in 24 days

The Port of Karachi in Pakistan is experiencing a sharp increase in transshipment volumes due to disruptions in the Strait of Hormuz, prompting shipping lines to reroute their services. In addition, discounts on port fees offered by Islamabad have encouraged carriers to use the Arabian Sea port.

According to Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry, around 8,300 containers were handled for transshipment throughout 2025, while in just the past 24 days, the volume has reached 8,313.

Shipping companies began discharging cargo in Karachi after services to Dubai, Salalah, and other Gulf ports were disrupted due to the crisis in the Strait of Hormuz. Iran has effectively closed the waterway since March 2 following attacks by the United States and Israel.

Experts point out that the main driver of the surge is the conflict in the Middle East, which has rendered traditional logistics hubs, such as the Port of Jebel Ali in Dubai, inoperable. As a result, carriers have been forced to redirect cargo to alternative ports, benefiting Karachi.

The growth has also been supported by companies already established in the country. Port operators and global shipping lines such as Hutchison Ports, Maersk, and COSCO operate in Pakistan, facilitating cargo rerouting.

Additionally, there was available capacity at port terminals to absorb the increase in transshipment, partly due to reduced transit trade with Afghanistan. Another key factor was the offer of discounts of up to 60% on port fees, which has been in effect since March 18.

To sustain long-term growth, experts highlight the need for stable, competitive policies. The rise in transshipment could improve Pakistan’s image as a potential logistics hub, though concerns remain about infrastructure capacity, which would require significant investment across the entire logistics chain.

Source: Valor Econômico

Sharing is caring!