The Kenya Ports Authority (KPA) has extended free cargo storage period to cushion shippers from the delays occasioned by Covid-19 pandemic. Domestic export containers will enjoy a free storage period of 15 days compared to earlier 9 days.
Transit import containers at the port and Inland Container Depot in Embakasi will enjoy a 14 days free storage period from 9 days with transit import container in Naivasha enjoying 30 days. Transit export container will now enjoy a 20 days free storage period from the current 15 days.
The changes were announced by the acting Managing Director Rashid Salim and will be in effect for a period of 90 days. However domestic import cargo four days free storage period remained unchanged.
“This is in line with our deliberate and continuous efforts of cushioning our customers of the Covid-19 which has affected the entire logistics chain,” Salim said in a public notice.
Importers in the region have been calling KPA and Kenya Ship Agents Association (KSAA) to increase the free demurrage quota and free cargo period as a result of slow clearance and transportation of goods due to lockdowns and curfews imposed by various countries.
Last month, they called KPA to increase the free cargo period from four to 11 days for local cargo and from nine days to 21 days for transit cargo.
The importers also asked shipping agents to increase the demurrage period to cushion them against extra expenses as a result of delays in clearance of cargo.
“We are asking shipping agents to increase the free demurrage period from nine days to 15 days for local cargo and at least 40 days from the current 28 days for transit goods in order to reduce our expenses,” they said in a statement.
The extensions would cushion their businesses against the increasing demurrages due to reduced working hours and lean staff due to the pandemic.
“In the past one month, different agencies have taken measures to comply with the Ministry of Health recommendations to control the spread of Covid-19, however this has slowed movement of goods from the port of Mombasa to different countries resulting in high demurrages,” reads part of the circular signed by importers and clearing agents.
The Federation of East African Freight Forwarders Associations (FEAFFA), the umbrella body of clearing agents in the East African region ,has also been urging the governments and the shipping lines to consider extending the free storage periods so as to allow affordable clearing and forwarding goods from the ports while cushioning cargo owners for incurring further losses occasioned by the Covid-19 Pandemic. “The high costs in storage means less business for the operations of clearing and forwarding agents who handle goods at the ports.” Said Roy Mwanthi, FEAFFA Secretary General and Chairman KIFWA. “We are therefore happy with KPA’s decision as it clearly demonstrates commitment by governments and other private players within the industry in ensuring business continuity during this crisis that has adversely affected our operations at the ports” He added.
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