Karachi Port vessel calls rose 13.7% as Middle East conflict reshaped shipping routes. Keeping the traffic will depend on roads and reform.

Karachi Port vessel calls rose 13.7% to 764 in the four months from July to October 2026, up from 672 a year earlier, according to Karachi Port Trust (KPT) data reported by Dawn. The newspaper says Pakistan’s ports are cashing in on shifting trade routes and the Middle East conflict, helped by tariff cuts and new shipping services. Officials warn that the gains will not last unless the roads that link the ports to industry are fixed.

The short version

• Karachi Port handled 764 vessel calls in July-October 2026, up 13.7% year on year; total cargo rose 3.8% to 19.286m tonnes.
• Export cargo rose 10.5% and dry bulk 26.1% over the same period.
• Transshipment incentives, cheaper terminal charges and a new direct Europe service are drawing lines that are rerouting around the Gulf conflict.
• The KPT chairman says broken port access roads raise logistics costs and wants half of a Rs160bn-a-year Sindh cess spent on them.

What happened

In the 2025-26 fiscal year, Karachi Port handled a record 55.438m tonnes of cargo and 2.749m TEUs (20-foot container units), with more than 2,100 vessel calls, Dawn reported. The pace has continued into this fiscal year. Karachi Port vessel calls reached 764 between July and October, against 672 a year earlier.

Several policy moves sit behind the numbers. In August 2026, Federal Minister for Maritime Affairs Junaid Anwar Chaudhry announced transshipment incentives under one framework for all ports. KPT offers 20-80% discounts on wet cargo vessels and wharfage, plus 14 days of free storage. Port Qasim waives wharfage in full and offers 7-21 days of free storage. The four private container terminals have cut handling charges by up to 25%. Customs now allows off-dock transshipment and sea-to-air transfers. In October, MSC launched a weekly direct service linking Karachi with Europe, and a new weekly feeder links Karachi with Khor Fakkan in the UAE.

Ship traffic is growing faster than the cargo it carries

Karachi Port, July-October 2026 vs July-October 2025, % change

Dry bulk cargo

+26.1%

Vessel calls (764 vs 672)

+13.7%

Export cargo

+10.5%

Total cargo (19.286m tonnes)

+3.8%

Why it matters

The conflict in the Gulf has been costly for Pakistan, through oil prices, remittance risk and sanctions on its western border, as Knock-On covered in how US Iran sanctions enforcement reaches Pakistan’s border trade. Rising Karachi Port vessel calls are one of the few direct gains. Benchmarks back this up: Karachi rose 30 places to 69th in the Container Port Performance Index 2025, its port connectivity score rose from 309 in the first quarter of 2026 to 357 in the third, and Pakistan moved from 35th to 34th in the global Liner Shipping Connectivity Index, Dawn reported. Former Pakistan Ship’s Agents Association chairman Muhammad Rajpar also pointed to the removal of Pakistani ports from Lloyd’s war-risk list.

More direct calls and transshipment can cut transit times and freight costs for exporters, which matters while the four-month trade deficit stands at $14.63bn, as noted in our report on Pakistan’s record forex reserves.

The knock-on effects

First order: more ships, more port revenue

Terminal operators, shipping agents and bunkering firms see more business. KPT chairman retired Rear Admiral Shahid Ahmed said bunkering services launched with Vitol in November 2025 have served more than 170 vessels. Dawn also reported rising ships at anchorage and more demand for warehousing.

Second order: road congestion becomes the bottleneck

Ahmed said dilapidated roads linking the ports to industrial zones and highways delay cargo and inflate logistics costs, despite Sindh collecting Rs160bn a year through the Sindh Infrastructure Development Cess. He proposed earmarking 50% of that revenue for port access roads. A senior official told Dawn that Pakistan “cannot afford to squander” the opportunity.

Third order: investment, if the gains look durable

KPT is offering 250 acres for terminal development, 140 acres for a Marine Business District and Manora Shipyard to investors. Saudi investors have shown interest in Pakistani ports, according to a Prime Minister’s Office statement cited by Reuters, and a Saudi-Pakistani private equity fund launched on 9 November plans to invest 75% of its money in Pakistan. A lasting US-Iran settlement could, however, send some traffic back to Gulf hubs. Oil prices have already fallen sharply on peace hopes, as covered in the oil price fall and the US-Iran talks.

Who could benefit

• Exporters: direct Europe services and more frequent sailings can shorten delivery times.
• Terminal operators and shipping agents: higher volumes, though tariff discounts trim margins per box.
• Warehousing, bunkering and logistics firms: transshipment and anchorage demand are rising.

Who may face pressure

• Truckers and importers: congested, poor access roads add time and cost.
• Port authorities: discounts and waivers mean volume must keep rising to protect revenue.
• The Sindh government: faces pressure to spend more of its cess on port roads.

What to watch

• December 2026: scheduled completion of dredging of Karachi Port’s navigation channel, meant to take larger vessels.
• US-Iran talks: a settlement could restore traffic to Gulf hubs and test how much of the gain is permanent.
• Port Qasim data: Dawn’s figures cover KPT only.
• Any federal-provincial deal on using cess revenue for port access roads.

Sources

• Dawn, Maritime Trade: Cashing on shifting trade routes, ME conflict, 9 Nov 2026
• Dawn (Reuters), Pakistan, Saudi Arabia investors launch fund to boost trade, investment, 9 Nov 2026
• Gulf News, Oil slides as Iran strike fears ease — Brent falls to $92.25, 10 Nov 2026

This is analysis, not investment advice. Figures are as of 10 November 2026. Knock-On is not affiliated with any political party.