India-Pakistan conflict disrupts regional trade and shipping operations

Heightened tensions between India and Pakistan have begun to significantly disrupt regional trade, as major global shipping lines suspend services to Karachi Port and reroute cargo to alternative points.

Pakistan's vital trade corridor through India's Mundra Port, commonly used for European-bound shipments, has effectively been shut down. 

Both nations have imposed mutual restrictions on cargo movements, prompting international carriers to avoid regional docking altogether. 

Two major Chinese logistics companies, COSCO and OOCL, have suspended their operations in the region. COSCO, one of the world's largest shipping firms, issued an official statement halting all cargo services to Karachi due to escalating conflict. The notice also warned that ships currently en route may be redirected to alternative ports such as Port Klang in Malaysia."

Additionally, over 25 airports in northern and western India, including Amritsar, Srinagar, and Jammu, have suspended civilian flight operations until at least May 10. Airlines such as Air India, IndiGo, and SpiceJet have canceled or rerouted flights. Pakistan has resumed flights nationwide after temporary closures at four airports, but the situation remains fluid. Airlines including Lufthansa, KLM, Singapore Airlines, and Thai Airways have rerouted flights to avoid Pakistani airspace, leading to longer travel times and delays on routes between Europe and Asia.

The mutual port access bans have caused additional disruptions, especially for those shipments that previously relied on transshipment through third countries like the UAE and Singapore.

PSA BDP will continue to monitor the situation and share additional updates as they become available.