Indo-Pakistan restrictions reroute ships via Colombo Port
The Morning: The Colombo Port has seen an increase in transshipment vessels in the past few weeks bound to Pakistani ports due to port access restrictions imposed by India.
New York-based B2B news site Sourcing Journal said that vessels are redirecting to transhipment hubs like Colombo Port, the Port of Singapore, Malaysia’s Port Kelang, the Port of Salalah in Oman, and the UAE’s Jebel Ali Port as an alternative to the restrictions imposed on port access by India and Pakistan.
The report said that ocean carrier giant Mediterranean Shipping Company (MSC) has launched a direct weekly feeder service from Pakistan to Colombo to transport export containers to Sri Lanka for connections to global destinations.
Moreover, it said that CMA CGM revised five of its service lines, removing Karachi port calls from three services to Europe, the Mediterranean and intra-Asia, while Port Qasim was removed from the Indamex route, which travels between India and the US East Coast.
These routes will instead use transhipment hubs in Colombo and another UAE-based gateway, Khalifa Port, to connect Pakistani cargo to the rest of the world.
MSC, Hapag-Lloyd and CMA CGM have implemented new surcharges on cargo to and from Pakistan.
MSC surcharges for Pakistan-related shipments include a fine of $ 800 per container headed to the US, Europe and Africa, and $ 300 per container to and from the Middle East Gulf and Indian subcontinent.
According to the Pakistan Ship’s Agents Association, most large container ships visiting Pakistan carry up to 70% Indian goods, thus making the Indian ports more of a priority.
OSL take:
Sri Lanka’s strategic positioning in the Indian Ocean, especially in close proximity to international shipping lanes have played a crucial role in the growth and expansion of the country’s maritime industry and related sectors. The strong trade ties enjoyed by Sri Lanka with many foreign countries have also added to the steady growth of Sri Lanka’s maritime industry. The increase in transshipments recorded by the Port of Colombo due to the Indo-Pakistan restrictions on the maritime sector including shipping routes is a clear indication of the advantageous positioning of Sri Lanka in the global shipping routes. With Sri Lanka also working towards becoming a maritime hub in the region and the ongoing developments, there’s an expansion in business/investment opportunities in the country’s maritime industry and related sectors. There’s a growing need for Sri Lanka’s maritime industry and sectors like ports, shipping and logistics to be constantly developed to be on par with the increasing global demands. The many business/investment opportunities that have emerged as a result presents a host of lucrative ventures to foreign businesses/investors. The growth and profits recorded by local businesses in the maritime industry in Sri Lanka also indicate the increasing business potential in the industry and related sectors.
| Article Code : | VBS/AT/20250520/Z_2 |