Prime Freight’s summary of a June 2022 report by The Loadstar. Read the original for the full story.
In June 2022 shipping stakeholders in Sri Lanka said that reports of carriers abandoning the port of Colombo during the country’s economic and political crisis were exaggerated.
The chief executive of Shippers’ Academy Colombo told The Loadstar there had been short-lived disruption in May, including days when inter-terminal truck drivers could not reach the port and a 30-hour stoppage on 9 May when unions joined protests. About ten container ships were diverted to Indian ports during the stoppage, but he described these as temporary diversions, not carriers writing off Colombo.
Terminal operators and the Sri Lanka Ports Authority said it was business as usual, with volumes growing year on year. Fewer ships were calling because vessels were larger, but transhipment volumes were still rising. He also rejected claims that a shortage of US dollars would stop carriers calling, saying about 95% of Colombo freight was paid in dollars, because garment exports mostly ship on FCA terms with freight paid by overseas buyers, and transhipment cargo is paid for by foreign owners.
What it meant for shippers
A port can keep working normally while the wider economy is in crisis. Checking terminal operators’ and carriers’ own advisories, rather than relying on second-hand reports, is the most reliable way to judge whether a transhipment hub is affected.