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Shipping Lines prefer Indian ports to Colombo

Sri lankan shippers are feeling the pressure of India’s booming export-import trade with some of the major shipping lines deciding to give priority to Indian ports over Colombo.

Jayanath Perera, Chairman, Sri Lanka Shippers Council, said shipping lines such as Maersk, UASC,Kline, and Norasia have diverted some of their services to NhavaSheva in Mumbai. Some have with drawn their European services to and from Colombo. Today, there is a shortage of 650 TEUs (twenty-foot equivalent units) a week for the Colombo-European sector.

The direct services from India obviate the need for Indian cargo to be transshipped through the Colombo port to Europe or the US thus saving around $100 a TEU for the shippers. India is now a cargo rich base as industry is booming.

The lines will consider diverting the ships based on the volume. For example, Maersk Line recently introduced a route change and also introduced a new service out of Chennai. Its European vessels have now been dedicated to the UK trade mainly giving preference to garments to the UK. This is despite expenses incurred due to delays at Indian ports, he said.

Inadequate infrastructure

Perera said lack of adequate infrastructure at the Colombo port was also a reason for the lines withdrawing or diverting their service from Sri Lanka. Hanjin-K Line-UASC combine used to operate two services to Europe from Colombo, but recently pulled out one. Norasia-Zim Line pulled out its weekly European service.

The worst hit are Sri Lanka’s exporters of garments, tea and coir.

However, the Colombo port development work is going on to keep its position as the main hub in the region. “No one can take Colombo’s strategic geographical location,” Perera said.

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