The Port of Karachi is witnessing a significant increase in transshipment volumes, setting new records as it benefits from vessel rerouting and proactive government policies. This growth positions the port as a vital hub for global trade amid regional shifts.

Record Transshipment Volumes

In March, the port handled 8,313 twenty-foot equivalent units (TEUs) of transshipment cargo in just 24 days. This surpasses the previous annual total of approximately 8,000 TEUs recorded for the entire year of 2025, highlighting Karachi’s expanding role in the global shipping network.

Shift in Shipping Routes

The increase is largely due to safety concerns in the region, prompting carriers to divert from traditional Middle Eastern gateways like Jebel Ali in the UAE and Salalah in Oman. The Karachi Port Trust (KPT) has emphasized its readiness to support the international maritime community with reliable and secure services.

Government Incentives Attract Vessels

The Pakistani government has implemented financial incentives to encourage vessels to utilize Karachi for transshipment. These include reductions in port fees and berthing charges, with discounts reaching up to 60 percent for ships carrying substantial transshipment cargo.

Vessels with at least 50 percent of their gross registered tonnage dedicated to transshipment cargo are eligible for the maximum discount on port dues. Larger container ships with at least 25 percent transshipment cargo can receive up to a 50 percent reduction in navigational service fees.

Record Container Handling

The Port of Karachi previously achieved an all-time container handling record in the 2024-2025 fiscal year, processing 2.65 million TEUs – a 4.5 percent increase from the prior year. Approximately 75 percent of cargo redirected towards Pakistan is now handled at Karachi, with the remaining 25 percent processed at Port Muhammad Bin Qasim.

Industry Recognition and Capacity

Industry experts recognize Karachi’s strategic advantages. The chairman of the Pakistan Ship’s Agents Association described the ports as a “safe haven” and “temporary storage hub” for regional trade. The ports currently handle 3.8 million containers annually but have the capacity to manage up to 6 million.

New Connectivity and Routes

In March, Pakistan and the UAE launched a new regular feeder shipping service connecting with UAE ports. Ocean carriers are also adjusting routes; Hapag-Lloyd added ad hoc westbound sailings to Port Qasim, and OOCL introduced a new Southeast Asia-to-Indian subcontinent service including the Port of Karachi.

Despite predictions of a global trade slowdown from UNCTAD, Karachi’s strategic location, government support, and growing capacity position it for continued success in regional and global trade.