Major cargo vessel carriers to move container operations to Hambantota
While Sri Lanka has recorded high transhipment volumes in March this year (607,731 TEUs) as global cargo was diverted due to tensions in West Asia, in March 2026, 317 container carriers were recorded, compared to 309 in the corresponding period. This has resulted in congestion at the Port of Colombo with delays of three to four days for regular berths.
Major cargo carriers are currently discussing shifting operations to the Hambantota Port. Developing and improving the East and West Container Terminals remains paramount to managing the high volumes, says Nilud Fernando, a professional in international shipping and logistics.
Mr Fernando also told the Sunday Times Business on Friday that sea freight rates are rising due to increased global bunker prices. “Despite high rates, demand remains low due to reduced buying power in the Gulf, US tariff issues, and an oversupply of vessel space. As it has been almost 900 days since the Suez Canal blockage, carriers continue to utilise the Cape of Good Hope. While this results in longer transit times and higher costs, it remains the only viable route. We expect these elevated freight levels to persist and advise preparing for continued increases.”
The ongoing conflicts have negatively affected export volumes of some of the key sectors. “Tea exports are highly vulnerable, as 50 to 52 per cent go to West Asia. Apparel volumes are impacted by new tariffs and increased freight costs. Geopolitical conflicts have led to fuel shortages and price spikes, with oil exceeding US$100 per barrel. We anticipate continued volatility. Shipping closures affect approximately one-third of global fertiliser supplies. With the March planning season, there could be a 15 per cent increase in related costs. Remittances from West Asia are also at risk due to regional job cuts, with a projected five per cent rise in unemployment within the Gulf region,” stated Mr. Fernando.
He also mentioned that Sri Lanka remains heavily dependent on imports, foreign remittances, tourism, and external borrowings. “To improve long-term prospects, the country must increase export volumes, particularly in the agricultural sector through coordinated national strategies. The trade deficit has widened from $1.1 billion in 2025 to $1.4 billion by February 2026, draining foreign reserves and hindering the supply of essential commodities,” he noted.
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