KARACHI:

Pakistan’s agricultural exports are currently battling a “triple threat”: the collapse of Middle Eastern shipping lines, the sudden imposition of massive war surcharges, and a prolonged trade cut-off with Afghanistan, leaving exporters with few viable routes for perishable goods.

In a conversation with The Express Tribune, All Pakistan Fruit & Vegetable Exporters, Importers & Merchants Association (PFVA) Patron-in-Chief Waheed Ahmed expressed concerns about the challenges now facing Pakistan’s agricultural exports.

According to Ahmed, exports of potato, kinnow and other items in the category are confronting the simultaneous collapse of Middle Eastern maritime routes, sharply rising conflict-related shipping charges, and the continued disruption of trade with Afghanistan.

According to updates from exporters, shipping lines have ceased operations to the Middle East due to the ongoing war. The situation has been further aggravated by a recent attack at the Port of Salalah, which has halted the movement of goods through that hub.

“No shipping lines are currently going to the Middle East because of the war,” Ahmed stated. “When there is a war, sea ports do not remain operational, and our potato and kinnow exports have stopped.”

In addition to the physical disruption, shipping companies have introduced “war surcharges” (Emergency Conflict Surcharge) amounting to $2,000 per container. He noted that these costs have significantly increased the cost of exports and made Pakistani produce less competitive in international markets, fundamentally altering the trade landscape and making it difficult for consignments to move forward.

While exports to CIS countries continue to flow via land routes through Iran, the maritime route remains frozen. Traders are currently monitoring the situation, waiting for a clearer picture of port operations and shipping schedules to emerge over the next two to three days.

“The scenario has changed overnight,” Ahmed said, adding that several shipping lines are refusing new bookings for Gulf destinations following the recent attack on infrastructure at the Port of Salalah. “With $2,000 in surcharges and no guarantee of port operations, our agriculture exports to Middle Eastern countries are at a total standstill,” he added.

Compounding the maritime disruption is the continued trade cut-off with Afghanistan. Once Pakistan’s largest market for potatoes, absorbing more than 40% of export volume, the border has remained closed for months due to conflict between Islamabad and Kabul.

While the government has recently allowed exports to Central Asian states through land routes via Iran to bypass the Afghan closure, Ahmed described the arrangement as a makeshift measure rather than a sustainable solution.

He noted that the Iranian route involves significantly longer transit times and higher transportation costs, making it unable to match the speed and volume of the traditional Afghan corridor.

As a result, Pakistan’s agricultural economy is facing pressure on multiple fronts. Trade with Afghanistan remains suspended, maritime exports to the Middle East are disrupted due to port attacks and shipping suspensions, and exporters are struggling with a sharp increase in freight and insurance costs.

“We are in a wait-and-see mode for the next 48 to 72 hours,” Ahmed said, warning that if shipping lines do not resume operations and the additional surcharges are not reconsidered, millions of dollars worth of perishable produce could be lost.

Several Karachi-based exporters of fresh jujube (ber/apple ber) to Iraq have cut short the export season due to US-Israeli aggression towards Iran, which disrupted regional logistics. Exporters said they halted procurement and shipments earlier than planned.

The fruit is usually transported to Iraq by air and land routes via Iran, but rising security concerns and uncertainty over transit routes forced exporters to suspend dispatches before Ramazan.

In an unprecedented situation, a Pakistani exporter said he is stuck in Iraq due to flight disruptions and is unable to continue Ramazan trade.

On Iran’s side, a trader, speaking on condition of anonymity due to security concerns, said he has moved to Dubai because of the intense war situation.

“Life is unpredictable as Tehran is under continuous attack,” he said.

Officials at Iran’s Government Trading Corporation (GTC) were unreachable due to internet shutdown.

Logistics advisory

With effect from March 2, 2026, major global shipping lines including Maersk, CMA CGM, Wan Hai Lines and Hapag-Lloyd, in their customer advisory, imposed War Risk and Emergency Conflict Surcharges on cargo bound for or transiting through the Gulf region amid escalating security concerns around the Strait of Hormuz and the wider Arabian Peninsula.

They notified that the charge is to be borne by the booking party.

The surcharge applies to any booking issued on or after March 2, 2026 that has not yet shipped, as well as to cargo already on the water but not yet discharged or loaded to or from the Upper Gulf, Persian Gulf and Arabian Gulf.

The additional levies range from $2,000 per 20-foot container to $4,000 for reefer and special equipment. The increase has intensified the burden on exporters already struggling with high freight rates and supply chain uncertainty.

If the situation persists, the surge in shipping costs could leave a lasting scar on the region’s trade and business profile, dent competitiveness, squeeze margins and cast a shadow over exporters struggling to maintain their foothold in international markets.