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 March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Stranded Virginia Beach Bulker Salvage Plan Set

The Coast Guard advises it is in the final stages of reviewing a salvage plan that is scheduled to begin Friday morning to move the 751-foot bulk carrier, 'Ornak',

Two Marine Engineers Join Specialists EBDG

Naval architecture, marine engineering & production support service providers Elliott Bay Design Group LLC (EBDG) apprise that they have appointed marine engineers

Inchcape Shipping Services Opens in Venezuela

Inchcape Shipping Services (ISS), the world’s leading maritime services provider, has expanded its network in Central and South America with the opening of ISS Venezuela in Puerto La Cruz,

Ports

Canaveral Tops State List for Sand Bypass Funding

The Canaveral Harbor Inlet Sand Bypass Project has earned the top state ranking for 2014/15 inlet management funding. As a result, Port Canaveral is expected to receive $100,

Rotterdam port's throughput almost stable

The Port of Rotterdam’s throughput in the first quarter of 2014, at 109 million tonnes, was 0.2% below the level for the corresponding period last year.Split up by goods type,

CMA CGM Strengthens Madagascar Presence

Since the creation of CMA CGM Madagascar in 2003, container shipping company CMA CGM Group has continued to develop on the island to move closer to its valued customers

 
 
Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Port Authority Ship Electronics Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | 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: 0.1268 sec (8 req/sec)