Shippers’ Council raises alarm over 300% rise in freight rates

Wednesday, 28 February 2024 00:24 - - {{hitsCtrl.values.hits}}

Sri Lanka Shippers Council (SLSC) yesterday expressed concern over an alleged 300% increase in freight rates and warned of damaging ripple effects.

“While welcoming the substantial uptick in container arrivals and movements at the Port of Colombo, the Sri Lanka Shippers’ Council (SLSC) is deeply concerned over the unprecedented 300% increase in freight rates imposed by shipping lines navigating the waters of the Cape of Good Hope en route to Europe and the United States,” the lobby group for exporters and importers said in a statement.

“This sudden surge in freight costs is causing a ripple effect, significantly impacting the global competitiveness of Sri Lankan manufacturers and the Small and Medium Enterprise (SME) sector. A primary concern revolves around the allocation of space, as transshipment movements are currently given priority,” SLSC said.

It emphasised the importance of maintaining global competitiveness and sustainable business practices. “The Council is actively engaging in discussions with relevant stakeholders to address these challenges and arrive at solutions that strike a balance between the commercial interests of the service providers and the viability of the import and export sectors in Sri Lanka,” SLSC said in its statement.

In navigating these challenges, the SLSC said it is committed to fostering a collaborative approach that ensures a mutually beneficial solution for all stakeholders.

“As Sri Lanka continues to position itself as a key player in the global trade landscape, the SLSC remains dedicated to navigating challenges and facilitating a conducive environment for businesses to thrive,” the statement added.