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Correspondents

Emergency Contact

21 May 2025

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A terrorist attack in Indian-administered Kashmir in late April 2025, followed by retaliatory action by both the Indian and Pakistani militaries, has led to escalation of hostilities between the two nations. This has prompted the invocation of several maritime restrictions which significantly alter the operational landscape for vessels trading in the region. In early May 2025, both nations issued a series of directives and circulars with the objective of curtailing maritime activities with the other, including reciprocal prohibitions on the entry of each other's flagged vessels and bans on the direct and indirect import of goods originating from the other. Although a ceasefire was reportedly agreed around 10 May 2025, the maritime and trade restrictions imposed by both nations have largely remained in place. 

This article considers some of the practical, legal and charterparty ramifications that Members must be aware of.

Overview of the maritime restrictions

Both nations have implemented immediate bans on their own flagged vessels from entering the other’s ports, and on the other’s flagged vessels from entering their own ports[1].

Both countries’ orders include some provision for exemptions to be considered on a case-by-case basis, although the application process and the satisfying criteria are unclear. It is expected that exemptions will only be granted in exceptional circumstances.

Both nations have also prohibited, with immediate effect, the import and transit of goods originating from or exported by the other, whether arriving direct or routed via other countries[2]. 

A significant point of divergence is the treatment of pre-existing contracts. Pakistan's Statutory Regulatory Order 750(I)/2025 expressly states that its prohibitions are not applicable if the bill of lading or letter of credit is issued prior to 4 May 2025. Conversely, India's ban on Pakistani-origin goods applies with immediate effect and does not contain a similar exemption for pre-existing contracts. Major shipping lines such as Ocean Network Express and Hapag-Lloyd have interpreted this as meaning that vessels carrying Pakistani-origin cargo, even if loaded before the implementation of the ban, will not be permitted to berth at Indian ports unless that cargo is first discharged at an alternative location outside India[3]

Implications for crew members

India's Directorate General of Shipping Circular 15 of 2025 states that Indian seafarers calling at ports in Pakistan should “...exercise due caution while operating in or transiting through the region”.
This advice is cautionary in nature – it does not appear to amount to an outright prohibition. At the time of writing, Pakistani authorities have not issued official restrictions relating to Indian crew members.

However, it is understood that P&I Club correspondents anticipate that Indian crew will likely be required to remain on board during calls at Pakistani ports and recommend that vessel operators consider replacing Indian Masters and/or crew prior to calling at Pakistani ports as a precautionary measure. Similar precautions regarding Pakistani crew members calling at Indian ports would appear prudent.

Implications for other flagged vessels calling at Indian or Pakistani ports

Vessels flagged by countries other than India or Pakistan may also face operational hurdles due to the new restrictions if they have previously called at an Indian or Pakistani port and/or if they are carrying cargo that originates from either of those countries.  

Some Indian ports, for example Kandla, have implemented specific procedures for vessels arriving from Pakistani ports. Vessels will only be accepted for berthing after special clearance has been obtained from customs and port authorities. This has reportedly led to significant berthing delays. There is no defined ‘look-back period’ stipulating how recent a previous call to a port in Pakistan must be to trigger this heightened scrutiny.

India's Directorate General of Foreign Trade Notification No. 06/2025-26 imposes a blanket ban on the “… direct or indirect import or transit of all goods originating in or exported from Pakistan”. Ocean Network Express and Hapag-Lloyd have interpreted this as meaning that all Pakistani-origin containers, including empty containers and containers that are being transhipped, are strictly prohibited from entering Indian ports even if loaded before the implementation of the ban.

Charterparty and legal considerations

The restrictions trigger a range of potentially complex legal and charterparty issues that owners and charterers must navigate carefully. 

  • Force Majeure: This is where performance of the contract is prevented or hindered by events beyond the parties’ control. Many charterparties will contain a force majeure clause. Government-imposed prohibitions could potentially qualify as a force majeure event, provided that such prohibitions are listed in the clause as a force majeure event and any other specific requirements set out in the clause are met. Force majeure clauses are often interpreted strictly, with the party seeking to rely on the force majeure event bearing the burden of proving that the event falls within the contractual definition and has directly caused the failure to perform.
     
  • Frustration: Under English common law, the doctrine of frustration may apply if a supervening event that was not foreseen nor caused by either party renders performance of the contract impossible, illegal, or radically different from what was originally contemplated. If a contract is frustrated, it is automatically discharged and the parties are relieved from performing their future obligations. The current bans, particularly those making it illegal for certain flagged vessels to call at Indian or Pakistani ports or for cargo to be discharged, could potentially be grounds for arguing frustration. However, establishing that a charterparty is frustrated is not easy and each situation must be considered on its own individual set of facts. For example, a longer-term time charter with a widely defined trading range is less likely to be frustrated as compared with a charter for a single voyage carrying one specific cargo of Indian or Pakistani origin to one specific discharge port situated in the other country.
     
  • Safe Port Warranties: Charterparties typically include a warranty given by the charterer (which could be express or implied) that the vessel will only be ordered to call at ports that are safe for that particular vessel. Safety is not limited to physical hazards – it also extends to political and administrative risks.  Although the penalties for infringing the current restrictions are unclear, these could potentially include vessel detention and/or customs fines. If severe enough, then an Indian or Pakistani port could in theory be rendered prospectively unsafe for the particular vessel. Again, each individual set of facts would have to be carefully considered on a case-by-case basis. 
     
  • War Risks Clauses: The restrictions have been imposed in pursuance of national security objectives in the context of heightened military tensions between the two countries. Most charterparties will contain a war risks clause, so consideration should be given as to whether this is triggered. For example, the BIMCO CONWARTIME clause defines “war risks” as including not only actual war, but also actual or threatened “… blockades (whether imposed against all vessels or imposed selectively against vessels of certain flags or ownership, or against certain cargoes or crews …)”. The current prohibitions apply to vessels based on their flag state and/or the place of origin of the cargo being carried, so could potentially fall within the “blockades” element. 
     
  • Deviation: If a vessel must re-route to comply or avoid risks associated with the prohibitions (for example, to discharge Pakistani-origin cargo at an alternative port prior to arriving at an Indian port), this could constitute a deviation from the contractually agreed voyage. The charterparty may contain a “liberty” or “deviation” clause which may justify the deviation and/or set out what the parties’ responsibilities are in that scenario. 
     
  • Off-Hire/Laytime and Demurrage: If delays are encountered, for example because of a port having mandated that a vessel must obtain special clearance or must comply with more onerous administrative burdens, this could lead to disputes over which party is responsible for the additional time. The outcome will depend on the precise wording of the relevant clauses in the charterparty. Generally (i) under a time charter, a vessel will remain on-hire unless the charterer can prove that the event was one falling within the off-hire clause and that time was lost as result; and (ii) under a voyage charter, laytime or time on demurrage will continue to count unless the charterer can prove that an interruption or exception to the counting of time has occurred, or that the time was lost due to the owner’s fault. 

Conclusion

Members are urged to exercise caution and to implement precautionary measures, including enhanced due diligence protocols for cargo and vessel routing, careful voyage planning including assessment of risks for Indian and/or Pakistani crew, reviewing existing and future contractual obligations and liaising with the Club and local correspondents to avoid or mitigate potential liabilities.

 

[1] See India’s Directorate General of Shipping’s Order 5 of 2025 and Pakistan’s Ministry of Maritime Affairs Shipping Order No. 01001/2025.  

[2] India's Directorate General of Foreign Trade Notification No. 06/2025-26 and Pakistan's Ministry of Commerce Statutory Regulatory Order (SRO) 750(I)/2025.

[3] https://www.hapag-lloyd.com/en/services-information/news/2025/05/here-is-an-update-on-the-trade-restrictions-between-india-and-pa.html and https://www.one-line.com/en/news/update-trade-restrictions-between-india-and-pakistan

 

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