Last updated on May 30th, 2025 at 07:50 am

Introduction

The India-Pakistan relationship has long been marked by geopolitical tension, rooted in historical conflicts, territorial disputes and diplomatic stand-offs. Despite this complicated political overlay, a few flash-up periods of increased trade and land-based cross-border logistics did emerge in tandem with precipitated and temporary improvements in diplomatic relationships.

Cross-border logistics is activated to facilitate trade between the two nations across their common border to get goods dispatched, including agricultural goods, textiles, chemicals and so on. The Wagah-Attari border has, from times immemorial, been an artery for such export-import business on roads and railways. Logistics operations almost always suffer halts due to political and military frictions, thus afflicting the businesses and economies of both countries.

This blog by Spedition India aims to analyze how the ongoing India-Pakistan conflict has affected cross-border logistics and trade, focusing on key trade routes, historical disruptions, current operational challenges and possible future solutions.

Overview of India-Pakistan Cross-Border Logistics and Trade

Trade between India and Pakistan mostly passes through certain established land corridors, among which the most important one is that through the Wagah-Attari border near Amritsar. In addition, goods have been transported via rail routes and limited road transport, though much of this has depended on political climate and diplomatic approvals.

Historically, goods such as fresh fruits and vegetables, textiles, cement, pharmaceuticals and chemicals have formed the bulk of bilateral trade. Many small and medium enterprises (SMEs) on both sides rely on this exchange for their survival and growth.

Spedition India ensures smooth, efficient movement of goods, even during geopolitical uncertainty. We handle documentation, manage customs clearance, and oversee warehousing and delivery, playing a central role in preserving supply chain integrity.

Historical Disruptions to Cross- border Logistics

For more than two decades, terrorist incidents have tended to disrupt import-export and logistics activities temporarily or for longer periods. Examples include the Kargil War in 1999, the attacks in Mumbai in 2008 and the Pulwama attack in 2019 and Pahalgam attack in current time which were all followed by higher military tensions, closure of borders and suspension of trade agreements.

Such disruptions resulted in:

  • Sudden halts in freight movement
  • Accumulation of cargo at depots and warehouses
  • Financial losses due to non-fulfilment of contracts

These conflicts have made it difficult to sustain long-term logistics planning. Businesses hesitate to invest in bilateral operations when stability is not guaranteed. As a result, logistics stability is weakened, discouraging potential growth in cross-border trade.

Current Impact of the Conflict on Cross-border Logistics

The ongoing conflict continues to hinder efficient logistics between the two countries. Several operational challenges have emerged in recent years:

  • Delays must be accepted as the shipments undergo increased customs, inspections and other regulatory checks.
  • Unpredictable transit times caused by frequent delays or cancellations of cross-border shipments affect inventory cycles for the companies.
  • Increased premiums of insurance and other costs of risk mitigation directly hike the logistics costs.
  • Most critically, uncertainty looms large over business confidence, discouraging new trade ventures or logistics investments.

As logistics firms, including Spedition India, strive to maintain operations under such volatile conditions, they are often forced to develop alternate strategies to ensure continuity and reliability.

Economic Consequences for Stakeholders

The economic repercussions of the India-Pakistan conflict’s impact are ever-present, affecting multiple parties on the ground and goes beyond the politics of a region:

  • Logistics companies suffer from contract cancellation, transport resources being underutilized and strained client relationships with contracting parties due to late delivery expectations.
  • Cross-border supply chain businesses struggle with escalating overhead costs, inadequate inventory and halted production processes.
  • An observable shift in trade flows has been noted where businesses are actively seeking new markets, routing through neighbouring countries such as Bangladesh and Nepal or transshipment ports like the UAE.

These activities or lack thereof, disrupt not only the direct actors, but extend their impact to the supportive industries of packaging, freight forwarding and warehousing.

Alternative Logistics Solutions

To combat the unpredictability of direct India-Pakistan routes, logistics companies are increasingly turning to alternative logistics solutions:

  • Third-country transshipment through Dubai or Singapore has become a preferred workaround. Though more expensive and time-consuming, it provides a layer of stability and neutrality.
  • Particularly indirect trade routes through Central Asia by sea freight or using multimodal corridors are worthwhile alternatives.
  • The use of trade facilitation measures in the form of e-documentation or real-time tracking and automated compliance checks has significantly lowered manual obstacles and increased transparency.

Spedition India is making investments in flexible transport solutions which combine air with road and sea due to the border disruptions.

The Role of Diplomacy in Trade Restoration

Through these challenges, maintaining diplomacy is effective for restoring trade relations. Confidence-building measures such as bilateral trade summits, trader visa allowances and simplified customs procedures will enhance logistical operations.

SAARC, FICCI and Chambers of Commerce have important functions in pushing open trade borders and fostering even dialogue in difficult times.

If both governments agree to leave politics out of trade and logistics, there is a great opportunity for such revival through policy changes and regional agreements which will be advantageous for the two economies.

Spedition India’s Response & Resilience in Cross-border Logistics

At Spedition India, we understand that operating in geopolitically sensitive regions requires more than operational efficiency — it demands resilience, adaptability and foresight.

Our response to these disruptions includes:

  • Contingency planning, including developing flexible routes and buffer warehousing near key trade hubs
  • Client communication protocols to ensure real-time updates on shipment status and regulatory changes
  • Develop multimodal logistics with alternate routing to maintain service continuity—even during peak tension periods

By staying agile and committed to excellence, we ensure that our clients’ supply chains remain robust, responsive and reliable—even during challenging times.

Conclusion

The ongoing dispute between India and Pakistan has severely impacted logistics operations. This has been especially pronounced in terms of trade activity, stakeholder commitment, economic integration in the region and movement of goods and services. From dealing with excessive customs policies to total freight stop, the problems are many and complicated.

However, through diplomatic efforts, policy evolution and adaptive logistics strategies, the path toward restored trade is still within reach. Spedition India remains dedicated to bridging gaps, offering resilient logistics services and helping clients navigate uncertainty with confidence.

In an era where cross-border logistics must be as dynamic as the world it operates in, Spedition India stands ready to deliver — no matter the challenge.