Traders urge removal of war risk surcharge as Indo-Pak tensions ease

Following the ceasefire between Pakistan and India, traders are urging international shipping lines to withdraw the recently imposed war risk surcharge, calling it an unnecessary burden in the current climate.

Traders argue that the normalization of security conditions negates the need for the hefty surcharges set to take effect later this month.

Last week, several shipping lines declared they would implement a war risk surcharge starting May 16 — $300 for 20-foot containers and $800 for 40-foot containers headed to or originating from Pakistan.

However, with the situation de-escalated, trade stakeholders are urging an immediate review and rollback of the surcharge.

“Now that both countries have agreed to step back, there’s no justification for treating Pakistani ports as high-risk zones,” a leading Karachi-based exporter told Nukta. “This is the time to encourage trade.”

Although mutual trade and aviation restrictions remain — each country maintains bans on the other’s national carriers and certain goods — many international shipping lines have begun rerouting vessels, and global air cargo operations are reportedly returning to routine schedules. This has already resulted in smoother supply chain movements, easing pressure on importers and exporters alike.

Business leaders say the momentum toward peace should be matched with practical steps to restore economic normalcy.

“The surcharge sends the wrong signal when the region is clearly moving toward stability,” another trade analyst said. “It's time for global logistics firms to align with the new reality.”