Shipping costs from Pakistan to US surge over 200% as Iran war disrupts trade routes
Freight rates for Pakistani exporters to the United States have more than tripled due to the Iran conflict, raising concerns over export competitiveness.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Negative · Do not buy
Higher freight costs hurt export‑oriented sectors such as Textile and Pharma; Don't buy.
Sectors & Direction
Desk read
Desk call: Do not buy · Negatively affected
- TextileNegatively affected
- PharmaNegatively affected
- AgricultureNegatively affected
- ManufacturingNegatively affected
Companies
Mentions in This Briefing
Sectors: Textile, Pharma, Agriculture, Manufacturing — Negative · Do not buy. PSX tickers: HUBC, KEL, KAPCO, PIAHCLA, PIAA, PIA. Higher freight costs hurt export‑oriented sectors such as Textile and Pharma; Don't buy.
Full Story
Open on Profit## Surge in freight costs
Freight charges for Pakistani containers bound for the United States have risen sharply, with some routes seeing a more than 200% increase. The escalation is linked to the ongoing Iran war, which has disrupted key shipping lanes in the region.
## Impact on exporters
Ismail Suttar, founding chairman of the Salt Manufacturers Association of Pakistan (SMAP), highlighted that a typical Karachi‑to‑New York shipment that previously cost around US$2,000 is now being quoted between US$8,000 and US$9,000. He warned that such a cost hike could severely erode the price competitiveness of Pakistani goods in the US market.
## Call for government action
Suttar urged the federal government to take immediate notice of the situation and devise an emergency response plan to protect exporters from the soaring freight burden. He emphasized the need for measures that could mitigate war‑risk insurance premiums and fuel cost spikes.
## Broader implications
The sharp rise in shipping costs may affect a wide range of export‑oriented sectors, including textiles, agricultural products, pharmaceuticals, and other manufactured goods that rely on US markets. Companies in these sectors could see margin compression unless alternative logistics solutions or fiscal support are provided.