The 48-Hour Shock to Sri Lankan Logistics

The global supply chain has entered a state of emergency as military conflict between the US and Iran led to the effective closure of the Strait of Hormuz over the last 48 hours. With the IRGC issuing prohibitions on vessel passage, nearly 150 container ships and tankers are currently stalled. For Sri Lanka, the impact is immediate: major carriers like Maersk have already suspended new bookings between the Indian subcontinent and Upper Gulf markets (UAE, Qatar, Kuwait, Iraq), while rerouting existing vessels around the Cape of Good Hope.

As a “transshipment anchor,” Sri Lanka faces a double-edged sword. While the Port of Colombo may see a surge in “relay” activity as ships avoid the Gulf, the cost of domestic imports is set to skyrocket. Air freight is already seeing a capacity crunch as safety risks ground flights transiting the Middle East, which represents roughly 13.6% of global air capacity. For local exporters, the “War Risk Premium” and a 10-15 day transit delay for European routes are now the primary obstacles to maintaining Q1 margins.

Source: The Register – Iran War Wreaking Havoc on Cargo