- September 1, 2026
- Posted by: Tresmark
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Karachi-New York container rates climb to $8,000-$9,000, raising concerns over exporters’ competitiveness
KARACHI: Shipping costs for Pakistani exporters sending goods to the United States have surged sharply on several routes, with freight rates increasing by more than 200% amid disruptions to regional shipping lanes following the Iran war.
A container shipment from Karachi to New York, which previously cost around $2,000, is now being quoted at approximately $8,000 to $9,000, according to Ismail Suttar, founding chairman of the Salt Manufacturers Association of Pakistan (SMAP).
Suttar warned that the steep increase in freight expenses could significantly hurt the competitiveness of Pakistani products in the US market, as exporters are being forced to absorb a growing share of additional logistics costs.
He called on the government to urgently develop an emergency response plan to address the surge in shipping charges and protect exporters from the impact of rising freight and insurance costs.
According to Suttar, while freight rates have increased internationally, the rise on certain routes originating from Pakistan has been disproportionately large.
The disruption has also affected the Karachi-Jebel Ali shipping route. Freight charges that previously ranged between $100 and $200 have reportedly climbed to around $4,000-$5,000, while the availability of vessels has fallen substantially.
The decline in vessel availability has created a supply-demand imbalance, putting further upward pressure on freight rates.
Pakistan faces competitive disadvantage
The increase in shipping costs is particularly concerning when compared with competing Asian exporters.
A container shipment from Vietnam to New York currently costs around $3,000-$4,000, compared with $8,000-$9,000 for a similar shipment from Pakistan.
Suttar said the resulting cost gap of roughly $5,000 per container puts Pakistani exporters at a significant disadvantage when competing for international orders.
He also highlighted structural weaknesses in Pakistan's maritime infrastructure, including the absence of an effective national shipping carrier and an insufficient containerised cargo fleet.
Countries such as China and South Korea, he noted, have national shipping carriers that can provide greater support to their exporters during periods of global trade disruption.
Exporters seek government intervention
Suttar proposed the immediate creation of an inter-ministerial committee involving exporters, shipping companies and relevant government departments.
The committee, he said, should investigate the exceptional rise in freight charges, assess disruptions across major trade routes and recommend measures to reduce the burden on exporters.
He warned that prolonged high shipping costs could result in fewer export orders, put additional pressure on Pakistan's foreign-exchange earnings and weaken the country's competitiveness in international markets.
Suttar urged policymakers to adopt a more proactive approach by continuously monitoring global shipping routes, freight rates and supply-chain disruptions rather than responding only after costs have already surged.
