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Global shipping line unloads at Sri Lanka ports, concerns of congestion
View(s):The global shipping line MSC will unload 6,500 containers meant for West Asia at the Hambantota Port, as there is currently no clearance for passage to the Gulf, shipping sources said.
Meanwhile, pressure is likely to grow on Sri Lanka’s existing stocks of bunker fuel for ships, as demand for global supplies skyrockets.
“There is no immediate crisis, although prices have gone through the roof, literally overnight,” a private sector industry source said. “The country’s bunker situation is generally in hand until early April with existing stocks in hand and on the water and, beyond that, sales out of Singapore are now available, albeit at very high premiums.”
Sri Lanka Ports Authority/file photo
“Demand has spiked severely, though, with increased stem (order sizes) on the back of ships omitting the Red Sea again,” he added.
While ship traffic to Sri Lanka’s ports has not increased, there have been inquiries about whether shipping lines can offload their Gulf-bound cargo here. “Since they are already loaded and in transit, and the Gulf routes are not currently viable, they need to offload their Gulf-bound cargo and go on their onward journeys,” sources from the Colombo Port said.
There are currently four MSC vessels looking to deposit a total of 6,500 containers in Hambantota. At a meeting with shipping lines this week, the Sri Lanka Ports Authority (SLPA) was informed that bookings are no longer being accepted to West Asia. There will be no new pileup, therefore, but already loaded ships face an issue.
“As a result, such cargo will stay longer in our ports, using our space,” the sources said. One MSC vessel berthed yesterday at Hambantota while another will arrive tomorrow. There are two more due.
In a customer advisory this week, World Transport Overseas, a leading international freight forwarding and logistics company, warned that port congestion is rapidly increasing across several major hubs in the Middle East, South Asia and South East Asia as vessels are being displaced from their usual routes, and anchorage areas are filling with ships waiting to discharge cargo.
This situation could also impact container shipments from the Far East to Europe and the US East Coast, it said.
“Many Asia–Europe and Asia–US East Coast services rely on transshipment hubs such as Singapore, Port Klang and Colombo,” the advisory continues. “When congestion builds up in these ports, delays in loading and discharging containers can quickly spread across entire service loops, and extend transit times.”
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