PAKISTAN LOGISTICS UPDATE – Middle East Conflict Update – Logistics Impact

Dear Valued Customers and Partners,

Due to the sharp surge in global oil prices, ocean carriers have abruptly implemented significant Fuel Adjustment, Operational, and War Risk Surcharges ranging from USD 300 to USD 700 per container, effective immediately. These charges are being applied despite existing rate validities and fixed contracts, and carriers are currently not in a position to negotiate or absorb these increases.

In the air freight sector, the market continues to remain extremely volatile with rates increasing by approximately USD 0.50 to USD 0.75 per kilo almost daily, primarily due to severely constrained capacity.

Locally, the Government of Pakistan has increased petrol and diesel prices by PKR 55 per litre, which is expected to have a direct impact on transportation costs. With global oil prices continuing to rise, another increase is anticipated in the near future.

In response to the situation, the Prime Minister of Pakistan has announced proactive measures, including the closure of schools and colleges, reduction in government office hours, limitation of major public events, and has encouraged the private sector to adopt initiatives such as work-from-home arrangements to conserve energy and reduce operational pressures.

We are closely monitoring the situation during these challenging times and will continue to keep you informed of any further developments.

Thank you for your continued support and understanding.

Regards,

Owais Zubaidi

Trade Lane Manager

EMEA (Europe, Middle East & Africa)

WWG Consolidators Pvt Ltd.