Sri Lanka's container volumes surge amid Red Sea attacks

08 Apr '24

2 min read

Pic: Adobe Stock

Insights

Container transshipment volumes rose to 528,348 TEUs in February 2024 as shipping lines used Colombo port to drop off and pick up cargo linked to by-passed Middle Eastern ports.
Up to February 2024, transshipment volumes were up 27.2 per cent.
Domestic containers also surged 39 per cent to 92,097 TEUs in February 2024, from 66,236 TEUs in February 2022.

In February 2024, Sri Lanka experienced a notable increase in container transshipment volumes, rising by 29.1 per cent to reach 528,348 twenty-foot equivalent units (TEUs). This surge was attributed to shipping lines utilising Colombo port for cargo operations previously linked to bypassed Middle Eastern ports.

Leading up to February 2024, transshipment volumes had already seen a substantial uptick of 27.2 per cent.

Simultaneously, domestic container volumes witnessed a resurgence, propelled by the country’s economic recovery from a currency crisis and heightened tourism inflows, which bolstered people’s incomes and spurred increased imports.

Domestic containers also saw a remarkable surge of 39 per cent in February 2024, rising from 66,236 TEUs to 92,097 TEUs compared to February 2022.

Overall, Sri Lanka’s total container volumes in February soared by 30.3 per cent, amounting to 1,337,557 TEUs. Notably, in 2023, Colombo Port handled 6.951 million TEUs, marking a 1.17 per cent increase from the previous year.

However, the increased activity has led to challenges, with container yards at Colombo terminals reaching full capacity as the port grapples with disrupted traffic due to the Red Sea attacks.

Shipping industry officials have also noted similar traffic surges in Mediterranean ports, indicating broader disruptions in global maritime trade routes.

The significant rise in container volumes underscores Colombo Port’s growing importance as a key transshipment hub in the region, driven by strategic shifts in shipping routes and economic dynamics.

Sri Lanka’s ability to manage and leverage this increased traffic will be crucial for sustaining its position as a vital player in the global maritime trade network.

Fibre2Fashion News Desk (DR)