Freight stakeholders in Mombasa, have raised concerns over the growing backlog of empty containers at depots and urged government agencies, to take urgent action to avert further disruption in the logistics chain.
Kenya International Freight and Warehousing Association (KIFWA), National Secretary, Musa Mbira, said the shortage of space for empty containers, has slowed truck turnaround time and strained transporters who rely on daily operations for income. He said the crisis began in June and worsened in November.
Speaking at a press conference at the Mombasa Sports Club, KIFWA National Secretary, Musa Mbira, said the crisis has left more than 500 trucks immobilized with empty containers, effectively turning the vehicles into storage facilities.
“We are requesting the Kenya Ports Authority (KPA), Kenya Revenue Authority (KRA), and Kenya Ships Agent Association (KSAA), to engage the Governors of Mombasa or Kilifi to allocate land in areas such as Mazeras, Miritini, or Jomvu for temporary container storage for 90 to 120 days,” Mbira stated.
He warned that the situation, which began in mid-June and worsened significantly in November, could become catastrophic during the December peak season if left unresolved.
“In the coming seven days, if there is no proper outcome on the issue of container returns, we will tell our members to drop the containers directly at the doors of shipping lines,” Mbira said, adding that most members are struggling to service truck loans and support their families due to lost business opportunities.
The freight forwarders accused shipping lines of operating outside regulatory frameworks and repatriating demurrage charges to offshore accounts, thereby, draining foreign currency from the country.
“Shipping lines in this country do not follow the law. They repatriate money and make our country have a cash crunch, because they are taking all the dollars to their offshore accounts,” Mbira noted.
He called on the Kenya Maritime Authority (KMA), to enforce its directives on shipping lines, citing KRA’s practice of suspending non-compliant clearing agents as a precedent.
“If KRA can switch off a clearing agent who does not comply with their directive, why does KMA not do the same thing to these shipping lines? They should not be allowed to trade in this country if they cannot comply with its directives,” he said.
Newton Wang’oo, Kenya Transporters Association Chair, said the association’s data shows over 500 trucks are idle with containers, resulting in substantial business losses.
“Those containers right now are occupying our trucks. Our trucks are acting as storage, and we are not able to deploy them. It disrupts the whole chain,” Wang’oo explained, adding that attempts to engage shipping lines have not yielded the required attention.
KIFWA member, Roy Mwathi, questioned why the country’s depots are full of unutilized empty containers, suggesting possible sabotage of the logistics industry.
“Currently, our trucks are stranded with empty containers, because there is no place to keep them. We want to call on our National government to intervene, because we are being sabotaged as logistics players,” Mwathi said.
Salim Mubarak, also a KIFWA member, criticized shipping lines for charging demurrage on empty containers that have been aligned for drop-off at full depots, despite transporters being told their free demurrage periods have not yet started.
He called on the government to direct KMA, to compel shipping lines to comply with directives and develop a full permanent solution to the depot crisis.
KIFWA Executive Officer, Andrew Ochieng, compared Kenya’s situation unfavorably with Tanzania’s regulatory environment, warning that the country risks losing regional business to its southern neighbor.
“Tanzania is regulating its shipping lines better. We are competing for Rwanda, Burundi, and Congo business. As we speak, Rwanda and Burundi are 100 percent in Dar es Salaam. It is only recently, due to political tensions, that they came back to Mombasa,” Ochieng said.
He revealed that shipping lines previously conspired to remove Section 16 of the Merchant Shipping Superintendent Act, which prevented them from venturing into other businesses. Today, shipping lines operate cargo transport, container freight stations, empty container depots, ship channeling, trucks, and clearing and forwarding firms.
“We have shared this with all the necessary bodies, including the Competition Authority, but nothing has happened so far,” he noted, adding that when President William Ruto visited Mombasa Port three years ago, a committee was formed to address these issues, but shipping lines have since taken the matter to court, delaying resolution for years.
KIFWA Mombasa Branch Chair Rajab Khamisi expressed frustration with KMA’s inability to regulate shipping lines despite its mandate.
“The body which is mandated to protect us and regulate the shipping lines, the Kenya Maritime Authority, has written to the shipping lines, but they are refusing. We want to know at whose mercy we are operating as agents,” Khamisi said.
He warned that if KMA does not intervene, clearing agents will be forced to employ drastic measures, that may not be favorable to both parties.
The freight forwarders are now calling on Cabinet Secretary for Blue Economy and Maritime Affairs Hassan Joho, himself a former clearing and forwarding agent, to intervene urgently before the crisis paralyses port operations and the town of Mombasa.
by Sitati Reagan
