Maersk Hits Mombasa Destined Cargo with Additional Charges

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Maersk Hits Mombasa Destined Cargo with Additional Charges
Maersk Hits Mombasa Destined Cargo with Additional Charges

Africa-Press – Kenya. Maersk, the second-largest container shipping company in the world, has introduced extra fees for shipments destined for Kenya, effective December 1, until further notice.

This is in the wake of the continued introduction of inspection fees and other levies by state agencies operating at the port.

Under the advisory, Maersk’s will start charging an operational cost imports fee of $18 (Sh2,332) for all twenty-foot dry containers, $33 (Sh4,276) per forty-foot-high cube container, while refers containers used for shipping fresh produces will attract an extra fee of $33 (Sh4,276) for a 20-foot container and $43 (Sh5,572) for a 40-foot reefer container.

This is in addition to other shipping charges, with the surchange applicable to Mombasa Port only in a move expected to make imports and exports expensive.

“This surcharge is being implemented to offset the additional operational expenses associated with container inspections. The OCI fee will be invoiced alongside the freight charges,” Maersk said in an advisory seen by the Star.

Maersk is one of the biggest shipping lines serving Mombasa and handled approximately 292,259 container units in 2023, representing about 30 per cent of the Port of Mombasa’s throughput.

Based on these volumes, Maersk is projected to collect an estimated $8,027,602 (Sh1.04 billion) annually from the surcharge alone.

The Shippers Council of Eastern Africa (SCEA) which represents the interests of importers, exporters and other stakeholders in the logistics and shipping industries across Eastern Africa, has since expressed concerns, even as it blames the government agencies for the continued introduction of charges at the port.

Among them if the Kenya Plant Health Inspectorate Service (Kephis) which has imposed inspection fees for vessels, full and empty containers, with some charges going as high as Sh10,000.

Other state agencies whose services come at a fee includes Kenya Trade Network Agency (KenTrade), Kenya Maritime Authority (KMA), Kenya Bureau of Standards (Kebs), with all the charges adding to the cost of doing business through Mombasa.

Kenya Ports Authority (KPA) also has port operations fees.

“Our members have expressed deep concern regarding the potential implications of this cost on the competitiveness of Kenyan imports, the overall cost of doing business and the stability of supply chain operations,” SCEA chief executive Agayo Ogambi told the Star.

SCEA has questioned whether the surcharge was reviewed and approved in accordance with Kenya’s maritime regulatory requirements, its basis, methodology and justification for the levy and if they charges meet the principles of transparency, fairness and reasonableness expected under shipping regulation frameworks.

What measures can be put in place to protect shippers, importers, logistics operators and the wider economy from unilateral cost introductions by shipping lines without prior consultation is another question raised by the shippers council.

Kenya Ships Agent Association said lines have not introduced any fees but rather passing on Kephis fees to cargo owners.

“Charges levied in respect of inspection activities must be transparently justified by corresponding, verifiable physical inspections. Such charges, where warranted, should be appropriately passed on to the responsible cargo interests, such as importers or exporters,” KSAA chief executive Elijah Mbaru said.

Ogambi said given the significance of the matter and its potential impact on the broader economy, there should be an engagement between Maersk, KMA and SCEA, to discuss the surcharge and explore practical, collaborative solutions to the growing concerns around new fees and charges introduced by shipping lines.

“We further request that KMA considers advising Maersk to suspend the rollout of the OCI surcharge pending a structured review and stakeholder consultations,” he said.

“Government needs to rethink the funding model for government agencies, otherwise we foresee a situation were shipping lines and other service providers shall institute charges to re-cover the fees and charges paid to the agencies.”

Consumers have traditionally bore the cost through higher commodity prices as players in the value chain pass-on extra charges, which ends up pushing up the cost of living.

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