Delays at Gulf Ports, Shipping Disruptions, Increasing Logistics Costs Cause Challenges for Pakistani Exports

Pakistani exports are facing significant challenges due to prolonged delays at Gulf ports, rising logistics costs, and disruptions in shipping activities.

The founding chairman of the Pakistan Salt Manufacturers Association, Ismail Sattar, today expressed concern over these ongoing issues affecting the country’s export sector. He highlights that delays in customs processes at major Gulf ports like Dubai are severely impacting the global competitiveness of Pakistani products.

Exporters and importers across the region are facing rising freight rates accompanied by increasing storage, detention, and administrative costs. Uncertainty in customs clearance is raising the overall cost of imported goods and disrupting the supply chain.

Despite efforts by global shipping companies to normalize operations, the logistics system remains unstable. Ongoing geopolitical tensions have prevented major carriers like Maersk and MSC from restoring traditional routes through the Strait of Hormuz, resulting in longer transit times and higher operational costs.

The salt industry is particularly affected by these challenges. As a high-volume but low-value export product, rising freight charges have now exceeded the price of salt itself. This imbalance is threatening the survival of Pakistani salt exporters in the global market.

The delays have extended the usual two to three-day transit period to Jebel Ali to 15 to 20 days. The financial burden on exporters has increased due to emergency freight surcharges, war risk premiums, and rising insurance and storage costs.

These persistent disruptions are complicating inventory management and extending the capital circulation period, affecting both export and domestic sectors. Sattar calls for better cooperation among shipping companies, customs authorities, and regulatory bodies to reduce delays at Gulf ports and ensure continuity of regional trade.