Shipping firm protests over clearance delays

A shipping line carrying fuel supplies for the Kenyan market under the centralised Open Tender System (OTS) has complained over delays in discharging its cargo, raising fears of a tight supply and potential price increases.

Sturrock Shipping (Kenya) on Monday sent an appeal to marketers to plead with regulators to give it berthing space in a bid to escape incurring demurrage charges at the port.

“Please endeavour to finalise cargo discharge documentation and payment of the necessary charges immediately to avoid further berthing delays. Unless full documentation processes are finalised, the vessel will not be allowed to berth,” the firm said in the appeal.

The plea comes as it emerges that delays in monthly arrivals of fuel products is denying consumers the benefit of affordable fuel products.

The bulk of the 91,167 tonnes of refined petroleum products that were to be shipped by the end of last month, we delayed for two weeks.

“Aviation fuel was expected on January 22/23 and diesel (automotive gas oil) on January 29/30. But both products arrived on February 5, nearly 10 days later,” an industry source said. A similar delay had earlier affected airline operators at Wilson Airport as the previous month’s consignment delayed by up to three weeks.

On Monday, it emerged that while the Kipevu Oil Terminal jetty was vacant for the better part of the day, the vessel carrying diesel could not berth as some marketers were yet to finalise their documentation formalities.

Authorities claim that oil marketers are not making prompt payments to the tax collector as well as the Kenya Ports Authority to allow for timely discharge, allocation and distribution of fresh consignments.

Officials at the national pipeline company also blamed idle capacity at their facilities on delays in the arrivals of industry cargo.

“KPC has sufficient ullage to accommodate incoming products and has stocks both in KOSF and upcountry. We are currently having one vessel NS Africa at the port (with over 50,000 cubic Metres Gasoil) awaiting documentation by receivers to be allowed to berth by KPA,” said Philip Kimelu, KPC’s manager for operations.

Data held by the firm shows that diesel stocks in Nairobi will last the country for between nine and 10 days respectively.

Oil marketers, however, claim that the industry cargo is being overlooked in favour of diesel meant for emergency power generation, forcing vessels to incur huge demurrages.