KARACHI: Foreign buyers may delay or reschedule Pakistani export orders as Middle East shipping disruptions inflate freight costs and undermine delivery reliability, according to textile industry officials on Thursday, warning of escalating threats to overseas sales.
The conflict-driven wars in the U.S.-Iran theatre beginning in February have fractured shipping operations through the Gulf. Simultaneously, pressures from Yemen’s Houthi forces in the Red Sea have forced carriers to reroute services away from the Suez Canal toward southern African ports.
For Pakistan’s textile sector—which generated approximately $18 billion in exports during the fiscal year ending June—disruptions drive up both the cost of imported raw materials and the final prices paid by end‑customers, with delays especially detrimental to apparel and home‑textile orders tied to fixed retail schedules.
“Buyers are growing more hesitant about delivery guarantees and total landed costs,” declared Kamran Arshad, chairman of the All Pakistan Textile Mills Association (APTMA) to Arab News.
“Orders face heightened chances of postponement, reduction or reallocation to alternative sourcing nations, notably countries possessing robust transport and logistics clusters, where freight pricing is lower and schedules remain comparatively dependable,” he added.
Arshad singled out India, Bangladesh and China as prime competitors and cautioned that sustained disruptions could shape future buyer procurement choices. He refrained from quantifying specific orders already lost or redirected.
Drawing on data supplied by textile exporters, he highlighted a dramatic surge in freight charges—Karachi‑to‑New York runs climbed from roughly $2,000 to around $9,000 per container, a 350 percent increase—and noted comparable hikes in China‑to‑Pakistan lanes ($2,000–$2,400 rising to $4,000–$4,500).
These figures reflect reported rates on individual corridors rather than an aggregate increase across the nation’s trade volume.
“Freight costs have spurted sharply since the breakdown,” Arshad observed.
Interloop, a Pakistani manufacturer serving global brands such as Nike, Adidas and Puma, echoed these concerns, citing steep rate climbs after February 28.
“International freight rates have risen significantly since mid‑February, with impacts varying by carrier and route,” explained Humayun Javed Khan, senior general manager for external affairs at Interloop, to Arab News.
Khan reported that transit time to the U.S. East Coast extended from about 28 days to 40–42 days, yet the firm has not witnessed cancellations of foreign orders.
“Several shipments suffered delays because of container shortages for forwarders,” he said.
While Interloop typically sells on a free‑on‑board arrangement—meaning buyers ordinarily cover the main sea segment after loading—customers now absorb the elevated international freight burden directly.
LONGER ROUTES, HIGHER COSTS
Syed Tahir Hussain, secretary‑general of the Pakistan Ships Agents Association, pointed to diversions circumventing the Cape of Good Hope adding 15–20 extra days to voyage durations.
“Of course, longer passages mean increased fuel consumption, bunker costs, insurance premiums and other operational outlays,” he remarked.
Outages differ among carriers and lanes; Maersk’s September advisory mentioned restrictions and surcharges for affected Gulf shipments while allowing partial throughput via Salalah, Oman. Both Maersk and Hapag‑Lloyd announced tentative reinstatements of limited services onto the Suez Canal, avoiding a full network recovery.
Pakistan’s government is exploring whether a dedicated container vessel could improve export connectivity.
The state may procure or lease such a ship, contingent upon guaranteeing guaranteed cargo volumes, said Maritime Affairs Ministry spokesperson Muhammad Arshad to Arab News.
“Guarantees would rely on exporters confirming the required cargo availability for the vessel,” he specified.
The initiative remains unconfirmed; no purchase, lease, route plan or timetable has been publicly announced.