Shippers Avoid Sri Lanka Because Of High Cost

Wednesday, August 15, 2001
Sri Lanka's port crisis deepened as insurers raised their war risk surcharges even further, prompting top shipping lines to sharply reduce services to the Colombo port. The crisis was triggered by a rebel attack on the country's only international airport on July 24, which prompted Lloyds of London to label the entire island a war-risk zone.

"The crisis has worsened. We have now been told that some shipping lines have to pay double what was earlier asked. As much as $480,000 per visit for the newer ships," said Parakrama Dissanayake of the Ceylon Association of Ships Agents. The local Daily Mirror paper said P&O Nedlloyd, Hyundai, Senator and Hapag Lloyd lines were asked to pay more than double the previously announced surcharge of $150,000 per call. Local officials of Evergreen Marine, Hanjin Shipping and American President Lines (APL), confirmed that many of their ships were bypassing Colombo.

"We normally have around 28 calls per month. We are reducing that to four per month," said a local representative of Evergreen. "The war-risk premium is just too high," he said.

Evergreen had some of the largest vessels, carrying 4,600 20-foot equivalent unit (TEU) containers, calling at Colombo. Hanjin said one of its larger ships had already bypassed Colombo but added it was still undecided as to what level of services to maintain. The line has eight ships calling at Colombo every month. APL Lanka said at least two of its four ships would not visit Colombo until the surcharge was lifted.

Before the surcharge, Colombo port had around 300 ships of all sizes calling in monthly. Officials said the rapid decline in shipping services was a huge crisis for the trade-dependent economy.

Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Lithuania Looks to U.S. for Gas

Lithuanian liquefied natural gas (LNG) importer Litgas has signed a preliminary agreement with a U.S. supplier, looking to lessen the Baltic nation's dependence on Russia.

Petrobras Denies Hiring JPMorgan for License Sales

Petróleo Brasileiro SA denied on Friday that it has hired JPMorgan Chase & Co to handle the sale of oil exploration licenses in deep-sea areas off the coast this year.

Asia-Europe Container Freight Rates Fell 6.5 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe fell by 6.5 percent to $938 per 20-foot container (TEU) in the week ended Friday,

Ports

Some Roads Reopened in Brazil, Truck Strike Persists

Striking truckers lifted their blockade of dozens of highways in Brazil after police began fining and arresting protesters, though strike organizers said they had

Asia-Europe Container Freight Rates Fell 6.5 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe fell by 6.5 percent to $938 per 20-foot container (TEU) in the week ended Friday,

Munkebo Maersk, Biggest Ship Ever to Sail on the Thames

The 18,300 TEU Triple E container ship Munkebo Maersk became the largest ship to ever sail up the River Thames as it called at DP World London Gateway.   The 399 metre long Munkebo Maersk,

 
 
Naval Architecture Navigation Offshore Oil Pipelines Port Authority Salvage Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1828 sec (5 req/sec)