CMA CGM levies emergency surcharge on Pakistani trade

Amid escalating military tensions between India and Pakistan, supply chain companies are reassessing their strategies to mitigate the aftermath of a potential full-scale war.

French carrier CMA CGM announced an Emergency Operational Recovery Surcharge (EORS) on all exports and imports to and from Pakistan, effective May 15, 2025 (sailing date) until further notice (valid until June 6, 2025 for U.S., Latam,and Australia territories).

"This measure has become necessary due to ongoing geopolitical developments in the region, which have significantly impacted on our operations. The surcharge is essential to maintaining the continuity, safety, and reliability of our services during this period."

CMA CGM will charge $800 per container from Pakistan to Europe/Med/U.S./Africa, $300 per container from Europe/Med/U.S./Africa to Pakistan and $300 per container intra-MEG/ISC scope, says an advisory from the carrier.

The EORS will be applicable to all cargo, without exception, with all imports and exports of Pakistan payable with freight covered under the scope of application, the advisory added.

Kuehne+Nagel, in a statement, says: "In light of the current situation between India and Pakistan, Kuehne+Nagel wants to assure everyone that the safety and well-being of our employees are our top priority. We have taken all necessary measures to ensure our people’s safety and security during these challenging times.

"We are closely monitoring developments and their potential impact on supply chains. Our primary focus is to ensure the continuity and reliability of our logistics solutions for our valued customers. We are actively working with our customers to manage their supply chain needs and are prepared to implement contingency plans if the need arises.

"Kuehne+Nagel remains committed to maintaining the highest standards of service and operational excellence. We will continue to keep our customers informed and work collaboratively to navigate any disruptions that may occur."

Maersk is likely to issue an advisory today, and more developments can be expected in the coming days.

Trade suspended, air spaces closed
India and Pakistan have closed air spaces, and trade has been suspended with each other.

The Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, has issued a notification prohibiting import of all goods originating in or exported from Pakistan to India. This will prohibit import of goods from Pakistan directly or through any other trade route.

The Ministry of Commerce, Pakistan, too, has suspended the import of Indian origin goods by third countries via sea, land and air; transiting through Pakistan.