India – Pakistan Standoff Derails Cargo Flows, Forces Air Reroutes

In a fresh diplomatic fallout, India and Pakistan have imposed reciprocal bans on cargo shipments passing through their ocean gateways—disrupting regional trade and alarming the shipping community.

India’s Directorate General of Foreign Trade (DGFT) announced a sweeping ban on direct or indirect import or transit of all goods originating in or exported from Pakistan, citing national security and public policy concerns. The response from Pakistan’s Ministry of Commerce was swift, enacting a mirrored directive, although it offered limited relief by allowing cargo already backed by bills of lading or letters of credit to proceed.

Caught in the crossfire, ocean carriers operating in and out of the subcontinent found themselves blindsided. Many were forced to bypass key ports such as Karachi and Port Qasim on westbound services to the US and Europe, instead rerouting Pakistani cargo via Sri Lanka’s Colombo port—a costly and time-consuming detour.

One shipping executive based in Mumbai acknowledged the initial disruption but emphasised industry resilience, reflecting the steps taken by the Indian government under the circumstances. Major carriers like Maersk have already mobilized dedicated response teams to assess the fallout and our working to plug supply chain gaps and offer tailored support to affected customers.

While bilateral trade between India and Pakistan remains limited, the real impact is being felt in third-country freight that moves across Indian territory—an unintended casualty of the latest diplomatic standoff. Foreign-flagged vessels are still permitted to operate in both countries’ waters, but uncertainty looms over long-term routing decisions. Carriers serving Indian trades may now consider revising their network rotations to include ports like Colombo or Jebel Ali, although some operators insist they’re not making any immediate changes.

The crisis has also spilled into the skies. Several global airlines, including Lufthansa and Air France, are rerouting flights to avoid Pakistani airspace. Meanwhile, both India and Pakistan have shut their skies to each other’s carriers, increasing flight times and operating costs for multiple routes across the region.

With the Red Sea crisis still exerting pressure on global shipping lanes, the India–Pakistan standoff adds another layer of complexity for logistics players already grappling with delays and diversions. A swift resolution seems unlikely, and the industry now waits to see how long the turbulence in the logistical—will last.