Container transport costs jump 20% as fuel shock feeds into logistics chain
Sri Lanka’s logistics sector has begun absorbing the first clear pass-through from the global oil price shock, with container transport operators raising charges by 20 percent from Monday as fuel costs surge following disruption in the Strait of Hormuz.
The Container Transport Owners’ Association (CTOA) said the revision was driven sharply by higher operating expenses linked to rising global crude prices and tighter shipping conditions amid geopolitical tensions in the Middle East.
“This increase in fuel prices has significantly impacted the container transport sector,” CTOA Chairman Sanath Manjula said, adding that the decision was taken collectively by industry stakeholders and approved by its executive committee.
The adjustment is expected to lift landed costs across imports and exports, feeding through ports, clearing agents and domestic distribution networks at a time when Sri Lanka has already implemented successive fuel price increases in recent weeks.
Sri Lanka raised fuel prices twice in recent weeks, with petrol now at Rs. 398 per litre and diesel at Rs. 382, reflecting rapid transmission of global crude movements into domestic pricing.
Brent crude futures have remained volatile in the aftermath of the Strait of Hormuz disruption, trading broadly around the US$ 100 - US$ 110 per barrel range, as markets continue to price in sustained supply risk in one of the world’s most critical energy corridors.
Analysis by economists released latter part of last week highlighted that the combined rise in fuel and logistics costs is likely to accelerate inflationary pressure across import pricing, wholesale distribution and food supply chains, reinforcing cost pressures in an economy heavily reliant on imported inputs.
The development marks an early transmission point of an external energy shock into domestic pricing structures, with transport costs typically acting as one of the fastest channels through which global fuel movements feed into inflation.
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