Shipping costs from Pakistan to US surge over 200% as Iran war disrupts trade routes

Profit by Pakistan Today reported that exporters paying to ship goods to the United States now face costs that, on certain lanes, are more than three times higher. The Iran war has disrupted key sea routes, lifting war-risk insurance premiums and fuel bills along the way. Ismail Suttar, founding chairman of the Salt Manufacturers Association of Pakistan (SMAP), said a Karachi-to-New York container that once cost roughly $2,000 now carries a rate of $8,000 to $9,000.

On the Karachi to Jebel Ali lane, Suttar said charges that previously sat between $100 and $200 have climbed to about $4,000 to $5,000 as available vessels become scarcer. He compared this with a Vietnam-to-New York container, now around $3,000 to $4,000, which is less than half the cost Pakistani shippers face on the same destination. According to him, the gap of roughly $5,000 leaves local exporters at a clear disadvantage in winning overseas orders.

Suttar also pointed to a structural problem, noting Pakistan has no national carrier and lacks enough containerised cargo ships, while China and South Korea use state-backed carriers to soften trade shocks. He has asked the government to act quickly by forming an inter-ministerial committee with exporters, shipping firms and relevant agencies to review the freight surge. Without prompt action, he cautioned, Pakistan could lose export orders, put more pressure on foreign exchange earnings and weaken its position in global markets.