The increase in demurrage charges at the Port of Mombasa by about $5 to $10 has led to the loss of business for forwarders who have reported that their customers are choosing alternative import routes or not importing at all to avoid incurring extra expenses.
In August this year, the government implemented a 20 per cent withholding tax on demurrage charges paid to foreign shipping lines. This has, in turn, resulted in the shipping lines increasing their demurrage to enable meet their profits and maintain their margins.
