India-Pakistan Tension Sparks Supply Chain Concerns

May 12, 2025

India-Pakistan Tension Sparks Supply Chain Concerns

India and Pakistan recently endured their most intense military confrontation in over 25 years, exchanging heavy fire, missiles, and drones over a four-day period.

While both countries have since ceased hostilities, they remain on high alert, each warning of severe consequences should the fragile ceasefire be breached.

The conflict’s ripple effects are being felt across the global supply chain. With the threat of renewed violence looming, logistics providers and carriers are swiftly reassessing risk exposure and operational continuity.

CMA CGM has announced the implementation of an Emergency Operational Recovery Surcharge (EORS) on all exports and imports to and from Pakistan, with others to potentially follow. The French carrier’s surcharge is effective from May 15, 2025.

“This measure has become necessary due to ongoing geopolitical developments in the region,” the company said in a statement, adding that the fee is essential to ensure the safety and reliability of its services.

Meanwhile, severe congestion has been reported at Pakistan’s primary container ports, Karachi and Port Qasim, following the suspension of direct calls by mainline carriers amid the ongoing trade ban with India.

Air freight also experienced temporary disruption.  Thirty-two airports in India’s northern and northwestern regions were closed due to airspace restrictions during the height of the conflict. These airports have since reopened, providing a tentative return to normal.

As geopolitical uncertainty continues, supply chain stakeholders across the region fear further disruption may be on the horizon. The team at Atlantic Pacific will be monitoring further developments closely.

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