News

Sri Lanka exporters, importers battle high rates, box shortfalls to maintain trade lifeline

Published

5 years ago

2021/04/25

Sri Lanka’s exporters and importers are working against multiple global and domestic logistics disruptions in the post-Covid-19 period to keep exports ticking and supply the country with essential foods and raw material as freight rates soar.

Exporters are also facing shortfalls of containers with import controls in Sri Lanka, compounding global bottlenecks in shuttling empty containers.

Though freight rates have started to stabilize gradually from Covid-19 peaks, Sri Lankan shippers are paying high rates and battling capacity bottlenecks.

Perfect Storm

Freight rates from Colombo to Europe, China and Hong Kong have jumped over 200 per cent, to the US over 150 per cent and to Singapore over 100 per cent, Sri Lanka’s Shipper Council Chairman Suren Abeysekera said.

Freight rates were competitive before the Covid-19 pandemic, helped by large container ships coming into service, but pandemic disruptions rapidly pushed up rates as ships were taken off service reducing capacity.

The Shanghai Freight Index has jumped three-fold compared to 2019 last quarter while the Drewry’s World Container Freight Index also shows a threefold jump from 2019 with the average spot freight rate jumping from 1500 dollars in March 2019 to 4800 dollar by March 2021, Abeysekera said.

“In my 21-plus year experience I have never seen something like this before,” Abeysekera said calling it a ‘perfect storm’ in ocean freight.

The resurgence of economic activities after Covid lockdowns ended, and the rush to build up stocks had created congestion in the global logistics system.

Shipping companies were making large profits and orders have also been placed at shipbuilders.

“Whatever that stopped during COVID, couldn’t come back to its former glory even though the industry came back quickly to match the consumer demand,” Abeysekera explained.

Costly Delays

Across the logistics chain, there are delays and congestion, which is a cost to shippers.

“Congestions created at ports amplify this issue with ships spending more time close to ports rather than moving cargo on water,” Abeysekera said.

While global trade has not actually grown, it is the disruptions and delays that are causing capacity problems, he said.

“Remember the number of ships in the world has not suddenly increased but most are out of schedule creating havoc to demand when it needs supply.”

“It is our understanding that the current volatility in the ocean freight market would continue throughout 2021 and shippers in the country should adapt to the new norm in containerized shipping,” he said.

The industry has taken a number of initiatives to mitigate the situation; more innovations are being underway, but there are also measures that authorities can take, he said.

Box Shortfall

Overall ships are fuller than before, reducing the ability of shuttles to be emptied.

Globally there were difficulties in getting hold of empty containers and also specific types such as food-grade boxes, refrigerated containers and different sizes such as 40-foot containers and 20-foot containers.

Vessels delaying their return to Asia due to congestion in export destinations had also contributed to a shortfall of containers in Asia. Others have also got stuck in inland ports.

There is at least one investigation by regulators to probe whether an artificial shortage is created, he said.

In Sri Lanka exporters are facing difficulties getting empty containers in general and specific types of containers.

Sri Lanka’s import controls had created shortfalls of empty containers, whereas, in the past, there was an excess of boxes on the island.

“Specifically for Sri Lanka, the reduction of imports has had a direct impact on container availability,” Abeysekera said.

“Generally, Sri Lanka has an imbalance in the number of containers with more inflow than outflow. But currently, it is reversed.”

Due to import imbalance, the 20’ equivalent size containers have a better availability compared to 40’ and 45’ containers in Sri Lanka.

But the overall export cost of 2 x 20’ containers instead of a 40’ container is incomparable.

Shippers Innovating

Shippers are taking several measures on their own to mitigate the fallout and maintain the external trade lifelines of the country.

Forecasting volumes to shipping lines and maintaining accuracy is one way to make sure shipments can be made on time.

“Currently, the earlier you could forecast the lines, the better chance for exporters/ importers to obtain space on vessels,” Abeysekera said.

“Presently, forecasting is done as early as and when found weeks ahead by some users. This helps with rates as well.”

The creation of a common container pool without having to look for containers in specific yards would also help, he said.

It is not clear whether an online data-based could be set up for container freight stations to update data daily.

Official Measures

State authorities could also take measures that would help combat the problem.

Sri Lanka has lost a number of ocean services during the congestion that happened during a Covid-19 spike at Colombo Port last year.

Though many lines have returned some are still bypassing Colombo.

“Sri Lanka should market its Colombo port internationally as a port which successfully combats Covid and attract vessels back to its shores which will increase capacity for local importers and exporters,” Abeysekera said.

Attracting new lines to Colombo would also help.

Sri Lanka can also invite shipping lines to use Colombo as their hub in Asia, he said.

Additional ships calling in Colombo will give more business to shipping agents and other service providers including husbandry and ship services.

Sri Lanka however has placed controls on foreign ownership of shipping agencies, which some say has prevented the island from following on the path of Singapore where regional offices are set up.

Fast-tracking clearances by border agencies would also help, he said.

Sri Lanka can also relook at import controls, he said. Ad hoc changes are creating ripples and uncertainties in the market.

While the cost of shipping had hit record levels, shippers have to put up with very high service charges from middlemen such as freight forwarders, consolidators.

He says such gauging is unethical given the current context. (ECONOMYNEXT)

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News

Fast Attack Craft P 4447 recovered in successful salvage operation

Published

15 hours ago

2026/09/14

Priyan

The Sri Lanka Navy successfully recovered its Fast Attack Craft P 4447 following a successful salvage operation, bringing a multi-stage emergency response to a close.

The craft, which ran into distress during a routine patrol on 15th August 2026 off Angulana, was brought to the surface on 11th September, from a depth of approximately 80 feet. It was
subsequently towed to the Colombo Dockyard premises.
The initial phase of the operation immediately following the incident focused on search and rescue. A joint effort involving the Navy, Air Force, Police, and local fishermen from Angulana
resulted in the rescue of 11 crew members. The search and rescue phase drew to a close with the recovery of the remains of the Second in Command of the craft, on 4th September.

Following the search and rescue phase, specialized Navy diving and salvage teams launched a dedicated recovery phase against rough sea conditions and underwater challenges, adhering to
strict safety protocols. The Navy’s marine, hull, electrical, and electronic engineering teams utilized specialized technical know-how and equipment to raise the vessel in stages.

Thus, the salvage operation marked an outstanding achievement attained through the professionalism, technical expertise of Navy divers, and coordinated contribution of all
engineering and technical branches of the Sri Lanka Navy. Technical support and specialized expertise were also extended by the Sri Lanka Ports Authority and Colombo Dockyard PLC.

News

CIABOC member’s appointment: Controversy over Speaker under probe heading selection process

Published

17 hours ago

2026/09/14

Thilina Walpola

By Shamindra Ferdinando

The Opposition should intensity its focus on the forthcoming selection of a member of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and remain vigilant as Speaker Dr. Jagath Wickremaratne, MP, the head of the Constitutional Council (CC) tasked with making the relevant recommendation, is under investigation by the CIABOC, sources familiar with the ongoing inquiry told The Island.

Chethiya Goonasekara, PC, is expected to complete his three-year term on Dec 31, 2026. Sources pointed out that CIABOC Commissioners are appointed by the President on the recommendation made by the 10-member Constitutional Council.

The CIABOC initiated the investigation following a complaint lodged by suspended Chief of Staff and Deputy Secretary General of Parliament Chaminda Kularatne in early February this year. Sources said that as Goonasekera is scheduled to complete his term toward the end of 2026, the CC would have to call applications soon to choose the successor.

Goonasekara received his appointment from President Ranil Wickremesinghe in January 2024. A Justice W. M. N. P. Iddawala was appointed Chairman of the CIABOC. The other commissioner is K. Bernard Rajapakse.

Asked whether Iddawala and Rajapakse, too, would complete their terms soon, sources said that in terms of the Anti-Corruption Act No 09 of 2023, the Chairman of CIABOC would hold office for a period of five years, second commissioner (K. Bernard Rajapakse) for four years and the third commissioner (Chethiya Goonasekara) for a period of three years.

Sources said that the Opposition as well as civil society representatives in the CC should take up the issue of Speaker facing an investigation by the CIABOC taking part in the forthcoming selection process. Responding to queries, sources emphasized that the issue was whether in terms of Section 107 of the Anti-Corruption Act the participation of the Speaker in the selection process amounted to a violation of the Act itself.

The current members of the CC are Dr Jagath Wickramaratne, Speaker and Chairman of the Constitutional Council, Dr. Harini Amarasuriya, Prime Minister, Sajith Premadasa, Leader of the Opposition, Bimal Rathnayake, MP, Aboobucker Athambawa, MP, Ajith P. Perera, MP, Sivagnanam Shritharan, MP, Austin Fernando, Civil society representative, Prof. Wasantha Seneviratne, Civil society representative and Ranjith Ariyaratne, Civil society representative.

Sources pointed out that in spite of the sensitivity of the case, the CIABOC recorded Kularatne’s statement in the second week of August, six months after he lodged the complaint.

The CIABOC on 3, 8 and 10 Sept recorded the statements from the Transport Officer, Deputy Director, Administration and Assistant Director, Finance regarding the use of facilities by the Speaker, those assigned to his staff and other relevant matters.

The NPP named Dr. Wickramaratne as the Speaker after Asoka Ranwala resigned over controversy regarding his higher education qualifications.

SJB lawmaker Dayasiri Jayaskera has repeatedly raised the issues concerning the Speaker with the focus also on the Speaker using two government-managed residences, relevant staff in addition to expenditure on food, transport and fuel provided to the Speaker’s private secretary.

Political sources said that trouble erupted after the Parliamentary Staff Advisory Council in late January sacked Kularatne accusing him of providing false information to secure his appointment. Before being appointed as the Deputy Secretary-General of Parliament in 2023, Kularatne held several high-ranking positions, including Secretary to the Chief Government Whip, Additional Secretary to the President, Additional Secretary to the Prime Minister, and Additional Secretary to the Leader of the Opposition.

The SJB declared in Parliament that Ranwala should be brought back as the Speaker as they have no faith in Wickramaratne. MP Mujibur Rahuman jokingly told parliament that the Opposition wouldn’t raise Ranwala’s educational qualifications.

News

GMOA: Countrywide cadre revision not done since 2015

Published

17 hours ago

2026/09/14

Thilina Walpola

Dhammika

The Government Medical Officers’ Association (GMOA) has stressed the need to conduct a comprehensive countrywide cadre revision urgently.

GMOA spokesman Dr. Lasitha Dhammika told The Island that the failure on the part of successive governments to conduct cadre revision caused the deterioration of the public sector health services. Due to the absence of required statistics, they hadn’t been able to fully comprehend the situation on the ground and to ascertain the requirements of the public.

Dr. Dhammika pointed out the expansion of the services without supporting statistics and the need to initiate an immediate cadre revision. According to him, the GMOA had raised this issue with successive governments without success. The GMOA spokesman said that they also sought relevant information from the Health Ministry in terms of the Right to Information (RTI) Act two weeks ago but was yet to receive response.

(SF)