Danish shipping giant Maersk has announced two new surcharges for freight services on major routes, including to Kenya, potentially driving up costs for traders and consumers. This move comes despite the Kenya Maritime Authority’s directive to pause the new charges for further stakeholder discussions.
The surcharges, linked to the Red Sea crisis and peak season demand, range from $300 (Sh38,931) to $2,000 (Sh259,540) based on container size, type, and destination. These are in addition to an earlier surcharge of between $13 (Sh1,687) and $151 (Sh19,595) introduced on July 15.
Maersk’s announcement affects routes from the United Arab Emirates, Bangladesh, and other countries to Kenya, as well as Sudan and other East African destinations, starting August 1, 2024. The company cited global impacts from the Red Sea crisis as justification for the surcharges.
Despite repeated requests from the Kenya Maritime Authority (KMA) for a suspension and review of the charges, Maersk has not halted their implementation. KMA had asked for detailed reasons for the rate changes and the impact on the company’s operations.
The Shippers Council of Eastern Africa (SCEA) expressed concern, noting that the new surcharges could significantly increase shipping costs. According to SCEA, the additional charges could raise the cost of exporting a 20ft container from Mombasa by over 13%, leading to increased overall shipping expenses. The industry faces an additional Sh27.5 million annually for exporting 20ft containers and Sh51.2 million for 40ft containers, with similar increases for imports.
These surcharges could also impact efforts to shift freight from air to sea, a key strategy for reducing carbon emissions and meeting market demands, particularly in Europe, SCEA warns.
