This archive report was first published on 14 July 2020.
As the Covid-19 pandemic continues to affect global trade, Kenya's Kenya Maritime Authority (KMA) has taken a crucial step to alleviate the burden on importers. Effective June 1, the agency has waived storage fees for empty containers held in various state holding facilities, providing a much-needed reprieve to local and regional importers.
The waiver was agreed upon after it was established that importers were significantly affected by the challenges posed by the pandemic. In June, the Kenya Ports Authority (KPA) suspended various operations at the port after several employees were diagnosed with the virus, resulting in the unfortunate death of one employee.
Under normal circumstances, importers are expected to return empty containers to the shipping line within a free period of 14 days for local cargo and 45 days for transit cargo. However, KPA offers a seven-day free storage fee for empty containers before levying Sh1, 500 for a 20-foot container and Sh2, 200 for a 40-foot container until it is removed from its depots. The KMA's move to backdate the extension of the free period means importers will now enjoy over two months of free storage.
Additionally, the Tanzania Shipping Agencies Corporation (TASAC) has also extended the free period for containers to cushion shippers from the delays arising due to the pandemic. The free period for containers from the port of Dar es Salaam going to Rwanda through Rusumo was extended from 30 days to 55, while the free period for those headed for the Democratic Republic of Congo (DRC) through Rusumo was extended from 55 days to 80. The free period for those headed for DRC through Tunduma was extended from 55 to 65 days.
It is worth noting that the KMA's decision to waive storage fees for empty containers is a welcome relief to importers who have been struggling to cope with the challenges posed by the pandemic. The move is expected to improve the availability of equipment and trucks, thereby facilitating smoother trade operations.
