The Port of Mombasa could soon enjoy a business boom after the International Maritime Organization (IMO) issued a formal notification removing the Indian Ocean from the list of high-risk areas.
This means that starting January 1, 2023, sea freight premium rates will go down and the region could receive more and larger ships.
Kenya International Freight and Warehousing Association National Chairman Roy Mwanthi said the move will boost trade as it will give confidence more vessels to ply the Indian Ocean routes.
“This is a major boost to trade in Kenya and EAC (East African Community). We should see lower sea freight rates and increase of cargo volumes with more vessels calling in the region,” said Mr Mwanthi
The decision has been communicated to the five largest global shipping industry associations – International Association of Dry Cargo Ship Owners, International Association of Independent Tank Owners, International Chamber of Shipping and Oil Companies International – which had suspended their operations along the route due to increasing cases of piracy.
An analysis conducted by BMP-5 and the IMO Secretariat have shown a decrease in the number of incidents of piracy and armed robbery in the region and by approximately 22 per cent globally compared to the same period last year.
The Kenya High Commission in London and a multi-agency in Kenya have led a sustained campaign to end the classification of the Indian Ocean as a high-risk area. The government has also increased security presence in the ocean waters, including deployment of the Coast Guard.
The discontinuation of the classification of the Indian Ocean as a high-risk area will save businesses billions of shillings in insurance fees, ultimately lowering the prices of goods in Kenya and the wider eastern African region.
“Kenya is delighted with the decision to remove the Indian Ocean from the High-Risk Area list as this will greatly boost commerce and remove the security cloud that’s hung over our region for more than a decade,” said Kenya’s High Commissioner to the United Kingdom and Permanent Representative to IMO Manoah Esipisu.
He added: “Kenya is aware that a number of other maritime security issues, such as smuggling, illegal fishing and other maritime crimes pose threats to regional security and Kenya remains at the forefront of ensuring sustainable approaches to address the root causes through regional mechanisms.”
He said Kenya is preparing to implement long-term partnerships with the industry through BMP-5 to continue monitoring maritime security threats in the region.
