India Imposes Comprehensive Ban on Pakistan-Origin Cargo at Ports: Significant Disruptions Expected for Freight Forwarders

Direct and Indirect Shipments Prohibited

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, issued Notification No. 06/2025-26, which explicitly prohibits the import and transit of all goods originating in or exported from Pakistan. This includes goods routed via third countries like the UAE, which had previously served as a workaround for Pakistani traders.

This stringent measure extends beyond direct trade, aiming to prevent the use of transshipment hubs to circumvent the ban. Indian agencies, including the Directorate of Revenue Intelligence (DRI), have already launched intensified enforcement drives, such as Operation Deep Manifest, to detect and seize falsely declared Pakistani goods attempting to enter India through intermediaries in other nations.

Impact on Pakistani Imports: Delays and Soaring Costs

The ban has immediately begun to create considerable disruptions for Pakistani importers. Industry officials, as reported by Dawn newspaper, indicate a sharp rise in freight charges and significantly longer shipping times.

Pakistani importers are now forced to rely heavily on feeder vessels, smaller ships making longer, less efficient voyages, often via ports in the Middle East or Southeast Asia. This shift inherently leads to increased transportation costs and extends transit times, directly impacting supply chain efficiency for Pakistani businesses.

While the overall impact on Pakistan's exports is currently reported as minimal, a textile exporter confirmed a spike in logistics expenses, particularly in insurance costs. Given Pakistan's reliance on imported raw materials for value addition, especially in its key textile sector, these supply chain disruptions carry broader economic implications for Islamabad, which is already managing its foreign exchange reserves.

Freight Forwarder's Perspective: Navigating New Complexities

For freight forwarders operating in South Asia and globally, this ban introduces a new layer of complexity:

• Rerouting and Alternative Solutions: Forwarders handling cargo with potential Pakistani origin or destination must now meticulously verify the provenance and final destination of goods. Creative multimodal logistics solutions involving alternative transshipment hubs and longer sea routes will become standard for any legitimate shipments.
• Increased Due Diligence: Enhanced scrutiny from Indian Customs and enforcement agencies means freight forwarders must exercise extreme due diligence to ensure compliance. Falsely declared origins or indirect attempts to bypass the ban could lead to seizures, heavy penalties, and significant operational delays.
• Higher Operational Costs: The reliance on feeder vessels and extended transit times will inevitably lead to higher ocean freight rates and overall logistics costs. Freight forwarders will need to accurately factor these into their freight quotes for affected clients.
• Carrier Adjustments: Major ocean carriers are already rerouting services. Some, like CMA CGM, have reportedly suspended calls to Karachi, while MSC is routing all Pakistan cargo via Colombo. Freight forwarders must stay abreast of these carrier-specific adjustments to provide accurate shipping schedules and options.
• Impact on Transshipment Hubs: Ports typically used for transshipment between India and Pakistan, such as Dubai and Colombo, may experience increased traffic and potential congestion, affecting efficiency even for unrelated cargo.

Broader Context: Deteriorating Trade Relations

This latest ban comes after years of strained trade relations between India and Pakistan. Formal trade ties have largely remained frozen since India raised import duties on Pakistani goods in 2019. Bilateral trade has subsequently plummeted, from $2.41 billion in 2018 to just $1.2 billion in 2024, with Pakistan's exports to India dramatically declining.

The Indian government maintains that these trade restrictions are critical for safeguarding national and economic security and preventing the misuse of trade channels for illicit activities.