Audit chops off Sh45,082 illegal container fees at Mombasa Port
The Port of Mombasa on March 28, 2023.
The government has scrapped Sh45,082($300) in unlawful fees imposed for container services by shipping lines and some State agencies at the Mombasa port, handing relief to importers and consumer households.
The move follows an audit by a presidential sub-technical committee formed to review charges after an outcry by port users.
Some shipping lines had introduced a raft of levies contrary to a directive by the Kenya Maritime Authority (KMA).
For example, major shipping lines have been charging equipment management fees, cross-border charges, late documentation per bill of lading fee, container cleaning fees, and import documentation fees, among others, which Tanzania Shipping Agencies Corporation (TASAC) that runs the rival Dar es Salaam port had revoked.
“To address the identified issues, the sub-committee proposes the following should not be raised as destination charges without justification and approval of KMA including cross-border fee, equipment management/monitoring fee, late documentation fee, container protection essential, depot charges at drop-off points, logistics fee, import documentation fee, transit corridor fees, administration charge and ‘other charges,” read part of the report obtained by the Nation.
Currently, shipping lines charge about $50 (Sh7,371) for 20 feet container and $100 (Sh14,743) for 40 feet container. Importers also pay about $50 (Sh7,370) for the cross-border charge and the same for late documentation per bill of lading.
Further, shipping lines have also introduced a $20 (Sh3,005.44) to clean a 20-foot container and $35 (Sh5,259.53) for a 40-foot one without approval of the KMA.
But in a new charges structure, the illegal fees have been scrapped, resulting in savings of Sh45,082($300) a container.
“With the direction we have taken, we shall reduce a burden of about $300 per container imported which is a big relief to traders. We shall gazette the new recommendations and we cannot allow anyone to introduce any charges without justification and implementation will be effected as it will be stated in the public notice this week,” said Shipping & Maritime Affairs PS Geoffrey Kainuko.
In the new charges, the manifest amendment fee will be capped at a maximum rate of $30(Sh4,508.52) from the current above $70(Sh 10,519.80), depending on the shipping line.
Kenya International and Warehousing Association chairman Roy Mwanthi termed the reduction of charges as a big win for business.
“We are happy and we want the implementation to take effect immediately as promised,” he said.
The Shippers Council of Eastern Africa (SCEA) representative in the Presidential Technical Committee, Agayo Ogambi, urged the government to review non-tariff barriers at the Mombasa port as well as the northern corridor.
“Our hope as SCEA is that after this focus on shipping line charges, a holistic review on costs - transport and logistics will be undertaken to include CFS, port, penalties, and related fees, which make our logistics costs expensive. Compared to the Asian region our logistics costs are at 35 percent while in Asia it is at eight percent. Delays, systems downtime which results in storage and demurrage to shippers, must also be addressed,” he said.
