Traders at the port of Mombasa have called out the government of South Sudan for the congestion of cargo currently witnessed at the facility.
In a press briefing in Mombasa on Thursday, January 2, the traders, under their umbrella body of the Kenya International Freight and Warehousing Association (KIFWA), blamed the South Sudanese government for imposing taxes on cargo destined for the country.
The traders allege that cargo set for South Sudan has been stuck at the port for over one month, causing losses to the traders who have to pay for demurrage charges.
Demurrage charges are fees that must be paid when cargo remains at a port or terminal for longer than the agreed-upon free period specified in a shipping contract.
An Image of a cargo clearance officer supervising clearance at Mombasa port
Photo
KPA
As a result, the situation has caused congestion at the busy facility, affecting the transportation of cargo at the Kilindini harbour.
The national chairperson of KIFWA called on the government of Kenya to intervene and solve the situation, which they say threatens their business operations.
“It is high time for customs administration in Kenya to get involved and solve the problem. This stalemate has a ripple affecting the economy of our people,” Roy Mwathi stated.
“Now when you have not exported the goods that you released with shipping lines going to South Sudan and you have not paid the demurrage as demanded by shipping lines, the shipping lines would stop processing the release of other consignments belonging to other countries,” he added.
On his part, Leonard Njiru, Chairperson of KIFWA, Mombasa chapter, noted they are accruing losses due to the congestion of the cargo.
He estimated that the releasing agents, who secure the release of these containers from the shipping lines, have to pay Ksh2,000 for 20 feet and Ksh40,00-Ksh5,000 per 40 feet, which is hurting their operations.
“When the time has expired to return the container, you begin to pay the demurrage charges,” he explained, calling on South Sudan to act swiftly and ensure the release of their cargo at the port.
“Our statement here is to inform the importers and their government in South Sudan that the agents in Mombasa will also begin to demand the demurrage in advance of releasing the containers from Mombasa at least for 15 days, the period that we estimate the period will reach Juba and comeback,” he added.
A freight ship
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Freight shippers