Agents and ship owners blamed for rise in freight costs

Release of goods

For instance, the delivery order fee, which currently stands at between $60 and $65, is charged for issuance of a letter of release of shipped in goods in exchange for the bill of lading.

It is a cost unique to Mombasa, according to a recent report by KMA.

The delivery note has a life span of seven days and a further similar fee is payable if the shipper does not clear his good in the period.

“If one has paid for freight, why pay the ship’s agents for delivery of what they already own?” KMA poses in the report.

But Mr Wahutu said that the delivery fee is charged by shipping agents as a service charge.

“This charge is not exclusive to Mombasa. It is levied in the vast majority of the world’s ports including our regional ports,” Mr Wahutu said.

There is also a bill of lading fee of between $50 and $60. This fee is charged in addition to a delivery fee.

“The bill of lading is issued when one pays for freight. Why would someone then be charged to collect it?” asked the KMA report.

The shipping agents charge another fee of $25 for handing over original documents to cargo interveners such as clearing agents.

All empty containers that are returned to the shipping lines are charged a cleaning fee of between $10 and $20.

“Whereas cleaning of a container should only arise when the goods carried were potentially dirty, all shipping lines operating in Mombasa collect an advance cleaning fee,” KMA said.

But according to Mr Wahutu, returned containers are often used to transport goods between various inland destinations, hence they require a clean up.

The shipping lines also charge a terminal handling charge (THC) of between $70 and $90.

“It is a wonder what this charge relates to, especially when one considers that Kenya Ports Authority has a similar charge for the same containers, subjecting shippers to paying twice for the same service,” KMA said.