Business
CASA sheds light on unprecedented shortage in containers and rising freight rates
The following are some selected excerpts from an interview done by CASA (Ceylon Association of Ships’ Agents) to enlighten the industry, on why container shortages are being faced globally and in Sri Lanka and possible alternatives available for the Sri Lankan Exporters & Importers.
Since the middle of 2020 and the outbreak of COVID-19, the global shortage of shipping containers has become a hot topic. Before the pandemic, experts anticipated a positive growth rate in the container industry through 2024. Yet the current crisis has caused the entire supply chain to function at a snail’s pace or in some instances to come to a relative stand still.
Containers that were mainly shipped from China (Far East) destined to the US and Europe were held up as all twenty four elements pertaining to the cycle of shipping from the depot to the shipper, port to the ship and more were severely affected due to labour shortage, inefficiency at terminals functioning without full force, ships being delayed at ports as the average turn-around time of 80 days exceeded 120 days – causing an unprecedented disruption to the industry.
In the Port of Colombo we handle a throughput of 80% of transshipment cargo out of an estimated total throughput of 6.8 million TEUs with the balance being imports and exports. In Sri Lanka we were able to balance out the requirement of containers for export with the imports despite there being a disparity in terms of the container requirements for exports which is predominantly in 40’s while imports are predominantly 20’s. With the import restrictions imposed by the Government, there was a dip in the imports coming into the country resulting in a shortage of containers mainly 40’ which are required for exports. To meet the 40’ container requirement for exports, the alternative was to reposition empty 40’ containers which is a costly exercise. Shipping lines were not willing to spend extra money to reposition containers. In view of this, most exporters faced a shortage of equipment for their export requirement during the last six months in Sri Lanka.
The freight rates have drastically increased in the long haul; for instance, the Shanghai Rotterdam Index which is mainly the route from Asia to Europe increased by 311% within the last 6-9 months (April to December) in comparison to 2019 -2020. Since the shippers were willing to pay, priority was given to the long haul sectors.
The only way of getting space and equipment for Sri Lankan exporters was to pay higher freight rates in line with what was being charged from the Far east.
Present freight rates shows a significant spike up to three or four fold levels or over 300% levels. Carriers should take in to consideration freight surge ex Sri Lanka too to pave the way for additional vessel space allocations instead of the comparison made with other origins.
It is obvious that other manufacturing load ports are pitched higher than Sri Lanka due to Country’s GDP, own geopolitical structures to name a few.
There are a few key points which were suggested at a Ministry meeting held recently regarding various issues pertaining to the current crisis. One such matter was the excess of 20 foot containers as SL exporters converting to 20 footers incurs an additional cost but if the shipping lines can provide an alternative in terms of cost, we can make use of the stagnant lot which would be mutually beneficial for all stakeholders.
It is a widely known fact that the most popular equipment used by modern day sea transportation is the 4OHQ. There are selected types of commodities which attracts 20DC equipment hence substituting 20DC does not always appear pragmatic.
A new force in Sri Lanka’s food industry, Kukus Group, is gaining momentum with a clear vision to deliver authentic cuisine, high hygiene standards, and affordability. Founded by young entrepreneurs Nadeera Senanayaka, Lakmini Gurusinghe, and Randila Gunasinghe, the group has successfully launched its pilot outlet and is now preparing for a significant nationwide expansion.
The inaugural in Kotte has served as a successful proof of concept. Operating for five months, this modern street-food outlet has garnered a strong customer response, confirming market demand and providing the confidence to fund the group’s ambitious growth strategy.
The inaugural in Kotte
“The positive reception has been overwhelming and has solidified our plans,” said Lakmini Gurusinghe and Randila Gunasinghe. “Our Kotte outlet is the operational model we will replicate – ensuring consistent quality, disciplined operations, and excellent service across all future locations.”
The group’s expansion strategy is built on three distinct thematic brands:
Kukus Street: Targeting young urban customers, these outlets offer a vibrant, casual dining experience with a menu of Sri Lankan rice and curry, kottu, snacks, and BBQ, with most meals priced under Rs. 1,500. Services include dine-in, takeaway, and delivery.
Kukus Beach: Planned for coastal areas, beginning in the South, this concept will feature an urban-style beach restaurant and pub designed for relaxed social dining.
Kukus Bioscope: Celebrating Sri Lanka’s cinematic heritage, this dedicated restaurant concept will create a nostalgic cultural space inspired by the golden eras of Sinhala cinema, with the first outlet slated for Colombo.
The immediate plan includes transforming the flagship Kotte location into Kukus Pub & Bar, pending regulatory approvals. The long-term vision is to develop 18 outlets nationwide: 10 Kukus Street locations, 5 Kukus Beach venues, and 3 Kukus Bioscope establishments.
“Kukus Group is more than a hospitality brand; it’s a celebration of Sri Lankan flavors and culture,” the founders concluded. “Our mission is to build trusted, recognizable brands that connect deeply with communities and offer lasting cultural value alongside authentic cuisine. We are dynamic and excited to proceed with this strategic expansion,” they said.
By Sanath Nanayakkare
Fcode Labs marked its seventh anniversary by hosting its annual Awards Night 2025 at Waters Edge, celebrating team achievements and reinforcing its organizational values.
The event featured keynote addresses from Co-Founders & CEOs Buddhishan Manamperi and Tharindu Malawaraarachchi, who reflected on the company’s annual progress and future strategy. Chief Operating Officer Pamaljith Harshapriya outlined operational priorities for the next phase of growth.
Awards were presented across three key categories. Prabhanu Gunaweera and Dushan Pramod received Customer Excellence awards for partner collaboration. Performance Excellence awards were granted to Munsira Mansoor, Thusara Wanigathunga, Thushan De Silva, Adithya Narasinghe, Avantha Dissanayake, Amanda Janmaweera, Sithika Guruge, and Sandali Gunawardena. The Value-Based Behaviour awards were given to Thilina Hewagama, Udara Sembukuttiarachchi, and Kavindu Dhananjaya for exemplifying company values.
HNB Assurance PLC has secured a top regional honour, winning Gold at the Mob-Ex Awards 2025. The Sri Lankan insurer emerged victorious in the competitive ‘Best Campaign – Lifestyle and Entertainment’ category for its innovative “Virtual Avurudu Village” initiative.
The campaign creatively reimagined traditional Avurudu celebrations for the digital age, building an immersive online community that resonated strongly, particularly with gamers. HNBA stood tall as the only Sri Lankan company to claim Gold this year, triumphing over major global brands.
Executive Director and CEO Lasitha Wimalarathne called the win a proud testament to the team’s creativity and passion. Chief Marketing Officer Dinesh Yogaratnam highlighted its significance in blending technology with tradition to create a vibrant virtual experience.
Organized by Marketing-Interactive, the Mob-Ex Awards celebrate excellence in mobile marketing and digital innovation across the Asia-Pacific region.
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