Gwadar sees rise in transhipment activity amid shift in regional shipping routes

Islamabad: Gwadar Port has started recording higher transhipment activity as shipping patterns change due to disruptions on traditional routes through the Strait of Hormuz, according to port officials and industry representatives.

The port recently received M/V HMO LEADER, which was carrying 368 metric tonnes of transhipment cargo, the Gwadar Port media coordinator said. Officials and trade stakeholders said the development points to growing interest from shipping companies looking for alternative routes amid tensions in the Gulf.

Gwadar Port Chairman Noorul Haq Baloch said the port is drawing cargo because of its location, modern facilities and free storage incentives. Abdul Rahman Fudda, president of the Site Association of Industry, said the increase in activity at Gwadar reflects a diversion in cargo flows caused by geopolitical tensions involving Iran, Israel and the United States.

Shipping lines are increasingly seeking safer alternatives, and Gwadar is beginning to benefit from that shift.

Fudda also said cargo volumes had risen at Port Qasim despite operational difficulties, including heavy rains during Ramazan. He said security arrangements at Gwadar Port remain tight and effective, and added that recent government relaxations had made cargo handling easier.

At the same time, he warned that Pakistan needs to move quickly if it wants to convert the current increase into a durable gain.

Improving infrastructure, rationalising port charges and adopting research-based policy measures are essential if we want this momentum to continue beyond wartime conditions.

he said.

Shakeel Ahmed, former chairman of the Pakistan International Freight Forwarders Association, said the country is seeing an exceptional rise in transhipment volumes, especially at Karachi Port. He said around 11,000 transhipment containers, measured in TEUs, were handled at Karachi Port in March 2026 alone, compared with about 8,300 containers processed during the whole of 2025.

This extraordinary surge clearly reflects diversion of global cargo flows towards Pakistan.

Ahmed said.

He added that container handling at Port Qasim has also picked up, with more than 900 containers processed in a single day and cumulative volumes reaching about 4,000 TEUs. He further said Gwadar has now formally joined the transhipment network. According to Ahmed, a dedicated vessel recently berthed at the port and unloaded about 1,900 metric tonnes of cargo bound for the UAE, while another vessel is expected shortly.

The figures on Gwadar cargo differed in the information provided by the Gwadar Port media coordinator and Ahmed. While the media coordinator said M/V HMO LEADER carried 368 metric tonnes of transhipment cargo, Ahmed referred to a dedicated vessel unloading around 1,900 metric tonnes destined for the UAE.

Although Gwadar's volumes are still building up, its strategic location gives it strong potential to emerge as Pakistan's primary transhipment hub.

Ahmed said.

Stakeholders linked the recent increase in activity to both geopolitical developments and policy steps introduced under Prime Minister Shehbaz Sharif. These included customs amendments, expansion of temporary storage and faster clearance systems, which they said have improved Pakistan’s position as a transhipment destination.

These interventions have delivered timely results, but must now be institutionalised into a predictable and long-term framework.

Ahmed said.

Salim Valimuhammad, chairman of the Pakistan Chemicals & Dyes Merchants Association, described the increase as a golden opportunity for Pakistan’s trade and logistics sector. FPCCI Senior Vice President Saquib Fayyaz Magoon said the government had revised customs rules and port handling arrangements to accelerate transhipment.

Magoon said a review chaired by the prime minister on March 25 decided that off-dock terminals would be allowed to handle transhipment, port transport charges would be cut by up to 60 per cent and export desks would be activated. He added that the Federal Board of Revenue issued notifications changing transhipment procedures and permitting a 16.9-acre temporary storage area at Port Qasim.

Valimuhammad said the increase was driven not only by Gulf tensions but also by shipping disruptions in Dubai that pushed international shipping lines to reroute cargo to Pakistan.

This indicates growing confidence among global operators in Pakistan's port infrastructure.

he said, adding that Port Qasim is also gaining from the higher cargo movement.

Industry leaders said maintaining the current pace would require coordinated efforts between the government and private sector, including stronger maritime security, secure cargo evacuation corridors, round-the-clock customs operations and greater digital facilitation. They also pointed to Pakistan’s duty-free transhipment regime as an advantage, since such cargo is exempt from customs duties and taxes. The Gwadar Free Zone also offers long-term tax and duty exemptions.