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Port Bottleneck Ripples Across the Economy

Port Bottleneck Ripples Across the Economy

Congestion at Malé Commercial Harbour has persisted since earlier this year. Economic Minister Mohamed Saeed attributed the congestion to improved Tourism and the economy, resulting in more imports, coupled with Ramadan imports and an under-capacitated port built in 1996. However, congestion has not improved post-Ramadan, and the ripple effects of the bottleneck are finally hitting the economy. 

Vessels have been waiting outside Malé for weeks as cargo remains uncleared. MSS Galena arrived on 14 April and CMA CGM Nacala on 12 April, with both ships still outside the port because of the congestion. According to Mohamed Aiman, Manager of Business Development at Maldives Ports Limited (MPL), vessel turnaround times now range from about 15 to 30 days.

Shipping Delays Drive Up Costs

Delays in unloading cargo are driving up costs for ship operators, as liners continue to face storage charges while containers sit in port for days without being turned around. To recover these losses, vessel operators and container lines increase freight rates, forcing importers to pay more and pushing up the prices of goods. The delays also create shortages, which add even more pressure to prices.

Importers are also dealing with reduced shelf life for goods because of extended storage times, adding further pressure to raise prices.

Infrastructure Seen as the Long-Term Solution

The solution lies in port infrastructure, according to Mr Aiman, who stated that Thilafushi Port is expected to become operational on 11 November 2027, with a capacity of 300,000 TEUs annually, compared to 135,000 TEUs handled in 2025.

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Mr Aiman stated that the loss to the entire economy is estimated at MVR 2 billion. However, for the next 1 year and 6 months, the question remains whether we should continue to bear the cost of these inefficiencies in our grocery bills.

MMJ News Desk
Author: MMJ News Desk

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