The political conflict in the Middle East and the subsequent attack on ships near the Red Sea have impacted ports around the world differently.
One of the ports that benefited from the crisis is the Sri Lankan Port of Colombo. The port has been witnessing increased traffic as carriers reroute around the Cape of Good Hope.
Meanwhile, trade through Saudi Ports in the Red Sea has declined due to prolonged carrier diversions to avoid regional hostilities.
Port of Colombo
Colombo, already a major transhipment hub for the Middle East and the wider Indian subcontinent, is well-equipped to handle large box ships on the east-west routes. Its location also allows for efficient connections to mega ports in the Far East.
Many carriers have decided to use the port for transhipment.
For example, Maersk, Alongside its alliance partner MSC, rerouted vessels on the Griffin/AE55 service to call at Colombo for connections from Asia to destinations in the Middle East.
Another key service is CMA CGM's Newmo service connecting Europe and Australia, where vessels now call at Colombo as an alternative on the return leg.
According to the Sri Lanka Ports Authority, port throughput in Colombo surged nearly 25% in the first quarter of 2024, reaching 2 million TEU compared to 1.6 million TEU in Q1 2023.
However, the new reality brought new challenges to the port.
Keith Bernard, chairman of the SLPA, told Lloyd's List that the extra volumes have led to congestion within the confines of the yards.
"Extra volumes were handled through coordinated efforts with sister terminals, and in extreme circumstances, double-dipping measures were used in cooperation with relevant shipping lines," said Bernard.
The phrase "double dipping" describes the practice of utilizing a container slot multiple times within the same service.
Jeddah and King Abdullah ports
While Colombo has benefited significantly from disruption in the Red Sea, the Saudi ports in the region have felt the heat of the conflict. Liners' decision to avoid passing the Suez Canal put many ports on the Red Sea in a challenging situation.
King Abdullah Port is a major transhipment hub for regional and international cargo in Saudi Arabia; it is also known for its rapid growth over the past decade.
However, the Red Sea crisis has caused a dramatic reduction in vessel calls at the port.
In February, both domestic and international vessel calls were recorded at just 14, compared to 76 in November the previous year.
This decline represents a staggering more than 90% fall in capacity.
Jeddah Port, another critical Saudi container port, has also been affected by the Red Sea crisis.
According to Lloyd's List, liner calls to Jeddah's docks dropped to 124 last month, down from 218 in November.
In terms of capacity, this corresponds to a nearly 70% decrease, from over 1.5 million TEU to just under 500,000 TEU.
