The Kenya Ports Authority (KPA) has extended free cargo storage period to cushion shippers from the delays occasioned by Covid-19 pandemic. The extension of the free storage period will be valid for 90days with effect from 10th December, 2020 at Mombasa Port and ICDN while for Naivasha ICD it will run for six months.
In a notice issued by the KPA, the notice extended the free storage period for the domestic import containers from 4 to 5 days.
Domestic export containers will enjoy a free storage period of 15 days compared to the KPA tariff of 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 containers in Naivasha enjoying 30 days. Transit export containers will now enjoy a 20 days free storage period from the current 15 days.
This extension comes barely a month after the Federation of East African Freight Forwarders Associations (FEAFFA) and Kenya International Freight and Warehousing Association (KIFWA) wrote to KPA seeking extension
“We noted that the extension was subject to review depending on the business dynamics. Indeed there have been many developments including a Regional Electronic Driver Tracking System (RECDTS) that was expected to ease driver testing and traceability and therefore traffic flows across EAC borders. Unfortunately, the situation has not changed significantly,” the joint letter dated 18th November signed by Mr Fred Seka and Roy Mwanthi FEAFFA president and KIFWA chairman respectively read in part.
Driver Covid19 testing services remain highly unpredictable due to routine lack of reagents, interstate differences in policies, limited sensitization of transporters and therefore slow update of the RECDTS among others. As a result, long truck queues are still prevalent at key borders making cargo transportation unpredictable, argued the two agencies.
“This has huge implications on our industry’s ability to pick and drop containers,” the letter said.
RECDTS is supported by the Trademark East Africa (TMEA) and by last month it reported to have registered over 50,000 truck drivers in the East African region. The aim is to have a Covid 19 electronic certificate that can be validated and accepted in any of the East Africa countries.
In the previous two occasions, domestic containers did not enjoy extension of the free storage period.
“The Authority further announces that the new volume- rebates aimed at enhancing the take effect from the date of this notice. The detailed information packs about the rebates are available at our customer care desk,” announced the notice that was signed by KPA acting Managing Director Eng.RashidK.Salim
Shortly after the region recorded the first cases of COVID 19, regional importers called for 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.
The approved first new free storage period run effective from May 18 for three months. In September KPA in a statement, said it was extending the free storage period in line with the Authority’s continuous and deliberate efforts of cushioning customers on effects of COVID-19 which has impacted the whole transport logistics chain.
“The Authority wishes to announce to the general public that the free storage period that we had granted to our customers on 18th May for a period of 90 days has been extended for another 90 days,” Salim spoke of the period which lapses in Mid-November.
In the 90-day window period, importers will get additional storage days, subject to review after the validity period, depending on the business dynamics, KPA said during the September extension.
The extensions would cushion their businesses against the increasing demurrages due to reduced working hours and lean staff due to the pandem.
Importers and exporters incur charges of between $30 (Sh 3,246) and $90 (Sh9,738) per day for cargo that has stayed beyond the free storage period and more than 24 days, depending on the size of the container.
Containers released by KRA and not collected after 24 hours are charged $100 (Sh10,820)and $200 (Sh21,640) per day for 20ft and 40ft respectively.
