Surge in Container Traffic at Sri Lanka’s Colombo Port Amidst Red Sea Tensions

The Port of Colombo in Sri Lanka has recently experienced a significant surge in container traffic, a development attributed to ships rerouting to avoid tensions in the southern Red Sea. According to Sri Lanka Ports Authority (SLPA) officials, container volumes have notably increased in the past weeks.

This shift in maritime routes comes as Yemen’s Iran-backed Houthi rebels have escalated attacks on ships traversing the Red Sea since November. These attacks are part of a conflict involving about 12% of global shipping traffic. The rebels claim their actions support Palestinians in the conflict with Israel. As a result, some shipping companies have opted for the longer and costlier route around Africa’s Cape of Good Hope.

The Port of Colombo, strategically positioned, offers a convenient stopover for vessels traveling from South Africa towards the Middle East, South Asia, and East Asia. “Colombo is the first major hub for ships coming past South Africa. Given its proximity compared to Singapore, it stands as the most accessible port,” stated Lal Weerasinghe, a senior SLPA official.

The port handled 6.94 million 20-foot equivalent units (TEUs) in 2023, marking a 2% increase from the previous year. A notable jump of 15% in TEUs was recorded in December alone. Recent weeks have seen a rise in berthing requests at the port’s three terminals, particularly from shipping lines operating in neighboring India. “We’ve seen daily TEUs increase by about 1,000 since last year, averaging 5,000-5,500 TEUs,” added Weerasinghe. However, the port had to decline some traffic increase requests to avoid delays for existing customers.

Mediterranean Shipping Company, a leading container shipping firm, accounts for about half of this increase. Moreover, Colombo is increasingly being used as a relaying port, where ships offload their entire cargo onto another vessel.

Officials from privately-run terminals in the port also report a rise in vessel calls and transshipment activity, especially from India. “This boost in traffic might propel the port towards double-digit growth in the first quarter,” commented an anonymous official from one of these terminals.