Fuel price shock ripples through trade as freight rates climb across Pakistan

Pakistan’s trading community is beginning to feel the ripple effects of rising fuel prices and newly imposed war-related surcharges, as transporters, shipping lines and airlines increase freight charges, raising concerns about higher trade costs and inflationary pressure.

Road transport — the backbone of domestic cargo movement — has already become more expensive.

All Pakistan Goods Transport Owners Association President M. Owais Chaudhry told Nukta that freight rates for a container carried on a 22-wheeler truck from Karachi to Lahore have risen significantly.

According to Chaudhry, the cost of transporting a container on this route has increased from PKR 350,000 to PKR 390,000.

On a per-ton basis, freight charges for shipments moving by road from Karachi to Lahore have also increased from PKR 9,000 to PKR 10,000 per ton, reflecting the impact of higher fuel costs.

He also said that the government should be vigilant to make sure the availability of diesel on OMCs petrol pumps countrywide.

The impact is not limited to domestic transport. Several international shipping lines have started imposing emergency fuel surcharges on cargo originating from Pakistan.

Shipping companies have introduced a fuel surcharge of $100 per 20-foot container on all bookings from Pakistan.

Earlier, some international shipping companies had already imposed an Emergency Conflict Surcharge on cargo moving to and from several Middle Eastern destinations.

The surcharge stands at $2,000 per 20-foot dry container and $3,000 per 40-foot dry container for shipments linked with Iraq, Bahrain, Kuwait, Yemen, Qatar, Oman, the United Arab Emirates, Saudi Arabia, Jordan, Egypt (Port of Ain Sokhna), Djibouti, Sudan and Eritrea.

Air cargo has also become significantly more expensive. Following the US–Iran conflict, air freight rates have risen by around 30–40 percent.

Industry sources say airlines are facing operational disruptions as parts of Middle Eastern airspace remain restricted, forcing carriers to adjust routes and operations.