High vessel-related charges, smaller draft make rate regime at ports sticky

With deeper draft and pricing flexibility, Port of Colombo still tough competitor for trans-shipment cargo

Relatively smaller draft, high vessel-related charges and somewhat poor location of ports make it difficult for Indian ports, such as the Vallarpadam port in Kerala, to keep rate consistently competitive in a market where the neighbouring Port of Colombo draws higher volumes in the trans-shipment space.

“Colombo is strategically located as it is situated on the main trading lane. In comparison, Vallarpadam has a difficult location and shipping lines need to travel more miles. This means, shipping lines will have to spend more time and money if they have to use this port for trans-shipment,” said Subrata Behera, manager, ports