Pakistan Explores Buying or Chartering Boxship Due to Shipping Challenges
The government of Pakistan has agreed to work with the country’s manufacturers and shippers to explore obtaining a dedicated containership. Like other nations, it cites the growing challenges and rising costs of shipping, while the manufacturers urge that they are at a growing disadvantage due to the problems in shipping.
The Minister of Maritime Affairs hosted a meeting in Islamabad on October 1 to discuss the challenges with the shipping industry. Adidas Pakistan led the discussion along with a local manufacturer, Style Textile, and the Pakistan National Shipping Corporation. Adidas has large manufacturing capabilities in Pakistan and is also a major retailer in the country.
The manufacturers and exporters emphasized the growing challenges, in part due to the disruption from the US-Iran war and the problems in the Red Sea. They highlighted the disruptions to shipping due to the rerouting of vessels away from the Gulf region and diverting around Africa to avoid the dangers from the Houthis in the Red Sea. They also cited changes in the shipping industry and the routing of the large containerships to main routes and relegating smaller ports to more limited feeder services.
They emphasized that the longer shipping distances are making it more difficult to move goods and driving up the cost of shipping. Furthermore, they said it is disadvantaging Pakistani exporters compared to regional competitors who have more direct access to major markets.
The Pakistan National Shipping Corporation told the meeting that it would be willing to charter or purchase a container vessel to facilitate the exporters' needs. However, they said it would have to ensure sufficient cargo volumes to make the operation commercially viable.
The ministry, along with the shipping corporation and the exporters, agreed to form a working group to examine the steps available to improve shipping connectivity and access to international markets. They are also asking for other measures aimed at reducing transportation costs and improving connectivity.
The manufacturers will also consult other exporters to determine a better understanding of the challenges and the potential demand for a dedicated container vessel.
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At the beginning of this year, the Karachi Shipyard & Engineering Works began cutting steel for the construction of the country’s first containership. The plan, which was announced in 2022, calls for building a vessel with a capacity of 1,100 TEU. It would be operated by the state-run Pakistan National Shipping Corporation. Reports at the time said it was the first large commercial ship to be built in Pakistan since the 1980s.
The government launched a task force in 2024 to examine the opportunities to expand Pakistan’s maritime economy.
