Major shipping line opts out of West Asia
MSC, one of the largest container carrier shipping lines, has declared ‘end of voyage’ asking shippers and consignees to take responsibility for goods dropped off at ports bound for war-affected West Asia.
Notifications have already been sent to the industry declaring end of voyage “on all shipments currently under MSC’s custody and care, whether located ashore or at sea, and destined for ports in the Arabian Gulf.”
All cargo discharged at the ports are to be picked up by the customers, the shipping line stated.
In addition, “a mandatory surcharge of US$800 per container will apply to all affected shipments, without exception, to cover deviation costs. Furthermore, all discharge-related expenses — including, but not limited to, handling, storage, and any ancillary charges — shall be for the sole account and risk of the cargo, in accordance with the MSC Sea Waybill / Bill of Lading Terms and Conditions, particularly Clause 13 (Special Circumstances).”
Six vessels have already come under attack amid the war and by Thursday a Maersk chartered vessel at Jabel Ali Port was hit by reportedly “an unknown projectile”.
Colombo Port is one of the key ports enroute to West Asia that is currently seeing a surge in container volumes and authorities state they are on top of the situation in providing adequate storage.
Sri Lanka Ports Authority (SLPA) Chairman Dr. Parakrama Dissanayaka said that West Asian container volumes continue to arrive at the Colombo this week as well and the SLPA is “managing volumes in a manner that it will not affect other operations.” Containers are stored at Colombo and Hambantota ports.
Although there was some discussion on increasing storage capacity on bare lands close to the Colombo Port City, bureaucratic considerations have led to authorities to finding other solutions.
Dr. Dissanayaka said: “For the moment we are trying to provide storage within the port. We are on top of the situation.”
Commenting on the bunker oil availability he said currently they have sufficient stock at the Colombo Port.
Moreover, he noted that there is a tank bank within and this is currently sufficient.
At present oil prices are creating uncertainty as all service providers are trying to safeguard their interest and even the US and Europe sectors are impacted as bunker fuel has surged.
Shippers Council Vice President and Exporters Association Vice President Nalaka Ratnayaka told the Sunday Times Business that the main concern at the moment is the surge in oil prices as bunker fuel has risen from pre-war $50-60 to a present $100 and likely to go up further to around $150. He noted this will be factored into the freight rates as well.
Moreover, he noted that currently this time of year post Chinese New Year there is a high demand for vessels and fewer vessels available.
| Air fares up | |
| SriLankan Airlines has like most other carriers increased flight ticket prices in line with the increasing global fuel costs. Due to the increase in fuel prices flight tickets to all destinations have increased, SriLankan Airlines spokesman Deepal Perera told the Sunday Times Business on Friday. The price increase in tickets is being carried out in line with the price increase of global oil prices, he said. As a result of the current war against Iran by the US and Israel, the airspace via West Asia has become increasingly restricted, compelling carriers to take alternative routes and avoid the conflict areas. Meanwhile, Mr. Perera also said that tourists who have already booked with SriLankan Airlines in advance are continuing to travel. |
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