Maersk joins peers with emergency surcharges on Pakistan cargo
Maersk has joined its peers in implementing ’emergency operational surcharges’ on cargo in and out of Pakistan that has been disrupted due to the recent trade cut-off with India.
The Danish carrier will begin charging $500 per container for Pakistan exports to major western markets and $300 per box on the inbound leg, starting on 21 May for non-regulated countries, and 13 June for regulated trades – with the exception of Vietnam where it starts on 29 May.
But Pakistan exports within the region, mainly the Persian Gulf and subcontinent, will attract $300 per container.
“In light of the recent developments that are impacting the movement of cargo between India and Pakistan, there have been restrictions on trade and marine traffic between the two countries,” Maersk said.
“To ensure we continue providing a high level of service we have made changes to our network and operations and these have necessitated implementing an emergency operational cost recovery surcharge.”
Additionally, the carrier explained, the restrictions at both ends were constantly evolving, Pakistan now allowing Indian exports/imports remaining on board to transit its ports, and India updating its protocols to permit Pakistan ‘imports only’ to pass through its ports.
The surcharge scale compares with the $800 per container levy announced by CMA CGM and MSC for shipments out of Pakistan.
Maersk, in a separate trade advisory, noted that port activity in the region, which had seen some disruption due to the military face-off, were now back to near normal operation. That concern in large part surrounded repeated operational suspensions at Mundra port in India, because of the then high security threat.
The carrier had already cut back on its direct coverage of Pakistan trade by removing a call at Karachi on its MECL service connecting to North America, and replacing it with Mundra as part of global network adjustments in tandem with the Gemini Cooperation launch in February.
Maersk, through Gemini and independently, is increasingly concentrating West Asia operations at Salalah port in Oman.
With the India-Pakistan trade disruption, Maersk’s Gemini, partner Hapag-Lloyd, has also begun using Salalah for Pakistan transhipment.
More carriers have reorganised their Indian subcontinent operations in anticipation of “prolonged supply chain pressures”, as both governments are unlikely to budge on their trade embargoes and other diplomatic positions, despite talks taking place at military level, sources believe.
ONE has now halted direct Karachi calls on its standalone WIN service between India and North America, but it will instead use Sri Lanka’s Colombo port for connecting Pakistan exports, and Singapore port for transhipment of Pakistan imports. Its reworked TIG and TIP services, covering Asian trades, will essentially handle Pakistan cargo relays.
