Sri Lankan exporters are facing a major risk of increasing their freight charges as the shipping companies have decided to increase their rates due to the Houthi rebels’ activities in the Red Sea.
The dollar-deprived nation putting further into the troubled waters, due to the terrorist activities of the Huthi rebels operating in the Red Sea, the commercial ships traveling through the region have increased their fees by about 300 percent. Sri Lankan exporters claim that this can be very detrimental to the exporters of this country. They warn that based on the current situation, the fee of US$ 600 charged for a TEU of export goods transported from Sri Lanka through the Red Sea will increase by US$ 1500.
According to them, this situation is caused by Yemen’s Houthi rebels operating in the Red Sea attacking ships targeting Israel. Recently, in this way, they also captured a ship and due to this situation, some shipping companies have focused on leaving this route and traveling by other alternative routes. Some big shippers are considering rerouting their regular trips. Due to these terrorist attacks near the Red Sea port of Bam El Mandeb, the cost of transporting a 20-foot container has increased by $1,500 compared to the current shipping rates in December.
In addition to increasing the transport charges, these exporters have also stated that even if shipping is done by other alternative routes, Sri Lankan exporters will have to pay more fees.
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