Shipping lines docking at the port of Mombasa have threatened to charge for the delay in cargo clearance, raising fears the move could raise the cost of imported products.

Mediterranean Shipping Company (MSC) last week issued a notice that it
would introduce a special congestion surcharge of $1009 (Sh8,100) per
twenty-foot container unit (TEU) beginning August 1, up from $20.

Other shippers are considering making a similar adjustment, putting them
on a collision path with importers, Kenya Ports Authority (KPA) and the
industry regulator— the Kenya Maritime Authority (KMA).

Mediterranean controls more than 25 per cent of the cargo cleared at the port .

KPA and KMA reckon the move would hurt importers and consumers as well
as make the Mombasa port expensive even as it faces competition from Dar
es Salaam.

But the shipping lines said they were losing business because of the delay in discharging cargo.

“There is no congestion at the port as claimed by some shippers. It
could have been one incident and not a trend to warrant such a radical
move,” Bernard Osero, a communications officer with KRA, said.

KMA director -general Nancy Karigithu said the proposed surcharges were
unacceptable at a time when the economy was struggling to pick up from
the recent downturn triggered by a prolonged drought locally and the
global financial crisis.

“The congestion surcharge is an arbitrary charge which the industry cannot bear at this time ,” she said in a statement

“The declaration of surcharge contravenes previously laid down
mechanisms for the determination of port performance and the
apportionment of liabilities for compensating losses suffered by any
party,” she said.

Importers say they will pass on the additional charges to their clients,
raising fears the cost of imported commodities such as petroleum
products, second hand vehicles, metal products and household goods could
also spiral.

Sources at the port told Business Daily occasional overload on the Kenya
Revenue Authority’s on-line clearing system as well as increased
shipments following the global economic recovery were causing the latest
build- up of cargo at the port.

“It is a fact that something needs to be done about the on-line Simba
system because it is getting overwhelmed as economic activity picks up.
The end result is that ships are taking longer to offload their cargo
and this explains the actions of some of the shipping lines to slap
charges for the time wasted,” a clearing agent said by phone.

But KPA says it was not to blame for the problem while acknowledging delays in cargo movement.

Mr Joseph Atonga, KPA’s chief operations officer, said the port’s container yard was currently half empty.

Source: Business Daily Africa

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