But shippers said that in the longer-term they expect the rate hikes that began towards the end of 2009 to continue as trade volumes recover with the end of recession and shipping lines struggle to stem losses.

Randolph Perera, former chairman of Sri Lanka Shippers' Council, said rates had risen by about 100-200 dollars for a 20-foot container in the Far East sector and even more to Europe since the start of this year.

“It’s mainly because of the increase in volumes before the Chinese new year,” he said. “A lot of cargo is moving to Europe. It might ease after the new year.

“In coming months, however, if we’re coming out of recession and Far East cargo volumes are increasing, shippers might have to pay higher freight rates,” Perera told LBO.

The reduced number of ships calling Colombo port was a major factor in outing upward pressure in freight rates.

“Also, we’re having fewer lines on the European sector after some lines pulled out of Colombo,” Perera said. “There are fewer lines calling Colombo. So we have limited capacity for cargo.”

Freight rates hit rock-bottom in the middle of last year owing to global recession and a huge over-supply of ships on the main trade routes after a surge in ship building, resulting in heavy losses to shipping lines.

But rates began to recover towards the end of last year after carriers reduced the number of ships on their services, putting them in lay-up, and also resorted to ‘slow steaming’ – reducing speed – to cut fuel costs.

Cargo flows have also rebounded making it more likely shipping lines will raise rates again.

“Now that there’s more cargo, lines are trying to recover some revenue right now,” Perera said.

“In the past year we got the best-ever rates in the market. But now lines are trying to recover as you can’t expect them to go on at a loss.”

Perera said shippers were also worried about the loss of lines calling Colombo, making port modernisation efforts, that had been subject to delays, critical to improving efficiency.

“We’re worried we’re losing lines calling Colombo. That’s why port development is essential and the authorities must get more lines to call at the port.”

A project to build a new deep-water port next to Colombo’s existing harbour is underway but has been subject to many delays.