Home East Africa Kenyan Importers Can Now Avoid Demurrages

Kenyan Importers Can Now Avoid Demurrages

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Kenyan Importers Can Now Avoid Demurrages
Detention and Demurrage - importance

(3 Minutes Read)

Traditionally, shipping lines charge USD 500 on 20-foot containers for local imports and USD 1,000 for a 40-foot container guarantee (CG) in case containers are lost, damaged, or returned dirty

Kenyan importers have been spared the charges on container guarantees at the Port of Mombasa, which will enable them to also avoid demurrage charges incurred on delayed clearances.

The move follows after Tanzania’s shippers and clearing agents struck a deal that would allow importers to settle any charges on damaged containers on returning them to a shipper, not before taking the cargo as before.

Traditionally, shipping lines charge USD 500 on 20-foot containers for local imports and USD 1,000 for a 40-foot container guarantee (CG) in case containers are lost, damaged, or returned dirty. Goods destined for neighbouring countries incur more expenses. Importers pay USD 1,000 for a 20-foot container and USD 5000 for a 40-foot, depending on the risks involved.

This week, four shipping lines including CMA CGM and MSC/Ocean Freight, shipping agents, and over 25 per cent of clearing companies signed a memorandum of understanding with Viaservice Company, which will cover containers while allowing importers to take their cargo to their destination. The company will allow those who sign a deal with it to clear the goods and only settle any dues upon returning the container.

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This move has been adopted in Tanzania already since 2020 and allows importers to clear goods while the firm fully secures the commercial interest of shipping lines and agents, instead of importers having to deposit money to the agents.