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Karachi Port becomes transshipment hub as Gulf war disrupts shipping

Karachi Port becomes transshipment hub as Gulf war disrupts shipping

M/V GFS Jade berthed at Karachi Gateway Terminal Limited (KGTL), discharging transshipment containers destined for various ports across the Middle East region. (KPT/X)

KARACHI: Pakistan’s Karachi Port experienced a surge in transhipment traffic this week as global shipping lines rerouted cargo away from the Gulf amid the escalating conflict linked to the US-Israeli war with Iran, pushing the port close to peak operational capacity.

 

Port authorities said the facility reached about 80% capacity on Friday when two major transhipment vessels, M/V CGLA Ocean Breeze 1 and M/V GFS Jade, berthed simultaneously at the Karachi International Container Terminal (KICT) and Karachi Gateway Terminal Limited (KGTL) terminals, marking the busiest point in a week-long increase in diverted cargo.

 

The surge comes as rising security risks and sharply higher war-risk insurance premiums for ships entering the inner Gulf have forced several international shipping companies to divert thousands of containers to Karachi as a safer regional alternative.

 

The regional disruption is unfolding against the backdrop of the ongoing conflict triggered by coordinated US and Israeli strikes on Iranian targets, which has raised concerns about maritime security near key Gulf shipping lanes and energy routes.

 

To maintain regional trade flows, KGTL this week launched a dedicated feeder service linking Karachi with major United Arab Emirates ports, including Fujairah and Khor Fakkan.

 

The shuttle service allows large “mother vessels” to offload containers in Karachi’s waters before smaller feeder ships transport the cargo onward to Gulf destinations.

 

“By linking Karachi directly with major UAE hubs, we are providing importers and exporters with reliable access to global shipping networks,” said Khurram Aziz Khan, chief executive officer of KGTL, in a statement.

 

Industry officials say the move has already attracted several regional shipping operators, including TS Line, Heung-A Shipping and Sinokor Merchant Marine, which are increasingly treating Karachi as a contingency hub for regional operations.

 

However, the sudden influx of diverted cargo has placed pressure on port operations. Congestion data from Trans-Border Global Freight Systems shows vessel waiting times have risen to about 2.5 days as ships attempt to discharge containers at alternative destinations.

 

To ease the strain, Pakistan’s Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry earlier announced an emergency waiver of demurrage charges for auctionable containers, provided they are cleared within seven days.

 

The minister described the measure as a “proactive approach to resolving congestion,” aimed at speeding up the clearance of stalled cargo and creating space for incoming transhipment shipments.

 

Officials say the shift began earlier in the week with several high-capacity arrivals, including the vessels MV TS Tacoma, MV TS Sydney, and MV Photon, initially viewed as precautionary diversions but now seen as part of a broader operational shift.

 

Karachi Port Trust Chairman Rear Admiral (Retd) Shahid Ahmed reassured international partners that the port remains capable of handling the increased activity.

 

“Karachi Port remains fully operational and committed to facilitating uninterrupted maritime trade,” he said in a statement on X.