Ceylon Association Of Ships Agents News

Shippers Avoid Sri Lanka Because Of High Cost

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.