Concerns Raised Over Maersk's Planned Surcharge Increases in Kenya

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Shippers and traders in Kenya have expressed serious concerns regarding the recent announcement by Danish shipping and logistics company Maersk about planned increases in surcharges for exports and imports to and from Mombasa. On June 15, Maersk issued an advisory stating that the new surcharges would take effect on July 15.
A shipping surcharge is an additional fee added to the base cost of transporting goods. Maersk, which holds a market share of approximately 28% at the Port of Mombasa, indicated that the surcharge increases will range from $13 (Sh1,677) to $151 (Sh19,479), depending on the size and type of container.
The Shippers Council of Eastern Africa (SCEA), representing the interests of cargo owners in the region, warned that these increases will raise the cost of doing business. The new surcharges will add $24 (Sh3,096) or 13% to the cost of exporting a 20ft container and a similar increase for 40ft containers. Import costs will also rise, with a $33 (Sh4,257) increase for 20ft containers and $34 (Sh4,386) for 40ft containers.
From an industry perspective, SCEA estimates that these new surcharges will result in an additional annual cost of $212,980 (Sh27.5 million) for exporting 20ft containers, raising total costs from $1.6 million (Sh204.9 million) to $1.8 million (Sh232.4 million). For 40ft containers, the increase will amount to $397,188 (Sh51.2 million), pushing annual costs from $3.8 million (Sh486.8 million) to $4.2 million (Sh537.9 million).
These surcharges could hinder ongoing efforts to shift from air to sea freight, particularly in light of climate initiatives and market demands in Europe, according to SCEA’s chief executive, Agayo Ogambi. The trade community is concerned that these increases will significantly impact their already struggling businesses in Kenya and the broader Eastern African region.
Given that Mombasa serves as a gateway for several Eastern African countries, the SCEA emphasizes that the increases could negatively affect regional economies and diminish the competitiveness of the port. The council has called for transparency regarding the surcharges and has requested a reconsideration of this decision.
SCEA also seeks a meeting with Maersk representatives to discuss the factors influencing these decisions and to explore mutually beneficial solutions.