The Port of Colombo has witnessed a remarkable surge in activity, with more than 330 ships docking in the past 29 days. This upswing coincides with heightened tensions in the Red Sea, prompting vessels to gravitate towards the strategically positioned Sri Lankan port.
U Kumara, the Operations Director of the Sri Lanka Ports Authority (SLPA), affirmed the substantial increase in ship calls, indicating a notable shift in maritime traffic.
However, this surge goes beyond a mere influx of vessels. Container operations within SLPA terminals have experienced a substantial 60.9% surge compared to the corresponding period in the previous year. This underscores the growing significance of the Port of Colombo as a key regional shipping hub.
The escalating tensions in the Red Sea have prompted marine insurance companies to respond by raising their rates. This move has the potential to impact shipping costs, introducing an additional layer of complexity for navigating the region.
The underlying cause of the heightened tensions is the series of attacks by Houthi rebels in Yemen on commercial vessels in the Red Sea since October 2023. These incidents have raised serious concerns regarding the safety of shipping lanes and the overall impact on global trade. In response, Operation Prosperity Guardian, led by a coalition including the United States, the United Kingdom, Bahrain, Canada, and the Netherlands, has conducted airstrikes against Houthi targets to deter further attacks and safeguard maritime security.
