An acute container shortage in China is driving global freight charges high, prompted by ships taking the longer route around the Cape of Good Hope instead of the Suez Canal, where Yemeni fighters, Houthi, have disrupted marine transport.
Traders in Kenya have raised concerns over the sharp increase in sea freight charges, paying some shipping lines Ksh1,113,500 ($8,500) for a 40ft container from China to Kenya, from Ksh222,700 ($1,700) in April – a 500 percent rise.
“I was to ship cars from Hong Kong and was hit with a Ksh1,179,000 ($9,000) bill from previous Ksh458,500 ($3,500) for a 40ft container,” said Jason Nyanjui, a Kenyan trader.
One of the biggest global shipping lines, CMA CGM, announced an Asia-North Europe a rate of Ksh786,000 ($6,000) per 40ft container from June 1.
Shippers Council of Eastern Africa acting Chief Executive Officer Agayo Ogambi warned of serious cargo supply disruption: “Ocean carriers are skipping ports or decreasing their time at port and not picking up empty containers, in an effort to keep vessels on track for delivery.”
This has affected Kenyan exports, with tea and coffee piling up at warehouses. Exporters in Mombasa say about a quarter is held up due to delays in shipping schedules for 2-3 weeks due to longer routes.