India and Pakistan have just emerged from their most severe military clash in more than 25 years, marked by four days of intense cross-border fire, including the use of missiles and drones targeting military installations on both sides.
Though a ceasefire has since been established, tensions remain high. Both nations continue to issue stern warnings, cautioning each other against breaching the current pause in hostilities.
The fallout from this escalation is being felt in global logistics and supply chains. With the potential for renewed conflict still looming, shipping and freight companies are reassessing their exposure and continuity plans in the region.
In response, French shipping line CMA CGM has introduced an Emergency Operational Recovery Surcharge (EORS) on all shipments to and from Pakistan, with other carrier’s considering options. The surcharge, set to take effect from May 15, 2025, will remain in place until further notice.
Meanwhile, Pakistan’s key container ports, Karachi and Port Qasim, are reportedly experiencing significant congestion, as major shipping lines suspended direct services in response to the trade ban with India.
The conflict has also disrupted air cargo, with 32 airports across northern and northwestern India temporarily closed due to airspace restrictions. These facilities have since reopened, marking a cautious return to routine operations.
As the region grapples with ongoing instability, uncertainty remains for supply chain stakeholders. The team at Killick Martin is actively monitoring the situation as developments unfold.
