The Hindu Business Line : Shipping lines prefer Indian ports to Colombo

Advantage India
Shipping lines such as Maersk, UASC, K Line and Norasia have diverted some of their services to Nhava Sheva in Mumbai.
Shippers save $100 a TEU as direct services from India obviate the need for Indian cargo to be transhipped through the Colombo port to Europe or the US.

Chennai June 6 Sri Lankan shippers are feeling the pressure of India's booming export-import trade with some of the major shipping lines deciding to give priority to Indian ports over Colombo.

Mr Jayanath Perera, Chairman, Sri Lanka Shippers Council, said shipping lines such as Maersk, UASC, K Line and Norasia have diverted some of their services to Nhava Sheva in Mumbai. Some have withdrawn their European services to and from Colombo. Today, there is a shortage of 650 TEUs (twenty-foot equivalent units) a week for the Colombo-Europe sector.

The direct services from India obviate the need for Indian cargo to be transhipped through the Colombo port to Europe or the US thus saving around $100 a TEU for the shippers. India is now a cargo-rich base as industry is booming.

The lines will consider diverting the ships based on the volume. For example, Maersk Line recently introduced a route change and also introduced a new service out of Chennai. Its European vessel has now been dedicated to the UK trade mainly giving preference to garments to the UK.

This is despite expenses incurred due to delays at Indian ports, he said.

Inadequate infrastructure

Mr Perera said lack of adequate infrastructure at Colombo port was also a reason for the lines withdrawing or diverting their service from Sri Lanka. Hanjin-K Line-UASC combine used to operate two services to Europe from Colombo, but recently pulled out one. Norasia-Zim Line pulled out its weekly European service.

The worst hit are Sri Lanka's exporters of garments, tea and coir.

However, the Colombo port development work is going on to keep its position as the main hub in the region. "No one can take Colombo's strategic geographical location," he said.

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