Pakistan Explores Dedicated Container Ship to Offset Export Costs Amid Red Sea Disruptions

KARACHI — Pakistan is considering leasing or purchasing a dedicated container ship to support exporters grappling with extended, pricier routes to European and US markets following Middle East shipping disruptions, according to the maritime affairs minister on Thursday.

The conflict involving the US and Iran has disrupted Gulf shipping, while Houthi attacks on vessels in the Red Sea have forced carriers to reroute services away from the Suez Canal, the traditional shortcut between Asia and Europe. Navigating around southern Africa extends transit times and raises operating expenses, placing pressure on manufacturers supplying overseas buyers.

During Thursday’s meeting, a delegation featuring executives from German sportswear brand Adidas and Pakistani manufacturer Style Textile informed the maritime minister that regional rerouting had escalated shipping costs and delivery times, as stated in a ministry declaration. They argued this placed Pakistani exporters at a disadvantage compared to competitors with more direct access to major markets.

“If exporters can guarantee the necessary cargo volume, leasing or purchasing a container ship could be evaluated to assist them,” Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry stated, per the ministry’s announcement.

He emphasized that sufficient cargo volume would be required to render the operation commercially viable.

Chaudhry formed a working group consisting of ministry officials, state-owned Pakistan National Shipping Corporation representatives, and exporters to evaluate the proposal and explore additional measures to lower transport costs and enhance access to overseas markets.

The statement did not confirm a ship purchase or lease, specify proposed routes, or provide a timeline for service launch. It also omitted figures regarding the additional costs or delivery delays reported by the delegation.

The exporters indicated they would consult with other businesses before presenting proposals to the working group.

The ministry did not clarify which shipping services or waterways were responsible for the delays discussed at Thursday’s meeting. The working group will determine whether a dedicated container service and other measures could improve exporters’ shipping connections and reduce costs.

Shipping disruptions have impacted routes unevenly, with some carriers starting to restore services through the Red Sea. Maersk and Germany’s Hapag-Lloyd announced in September that four additional joint services would resume Suez Canal sailings, though further adjustments would hinge on the absence of renewed regional escalation.

Source link