27 May India Pakistan Stand-Off Impacts Supply Chain
The recent volatility between India and Pakistan has caused disruption through the supply chain landscape, with no foreseeable resolution at this point in time.
With India and Pakistan both enacting cargo bans and restrictions on the docking of ships carrying the other nation’s cargo, this has caused widespread delays, rerouting of vessels and diversions to transhipment carriers, creating congestion and adding time and cost. As a consequence, freight rates have risen and emergency surcharges are being applied by some carriers.
This disruption has reverberated across the air cargo sector as major airlines have started diverting flights to avoid Pakistan’s airspace, leading to longer flight times, higher fuel costs, and mounting pressure on capacity across Asia-Europe and Asia-US routes.
Whilst two-way trade between the nations is small, this standoff has wider ramifications, impacting third-country shipments that are caught between the two territories, with further disruptions expected to continue across the board.
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