The Kenya Ports Authority (KPA) in a bid to reduce costs and enhance efficiency has recently issued a customer notice regarding changes to their storage fees and free period for transit cargo that will . This notice, which comes into effect on May 1st, 2023, states that the storage free period for transit cargo will be extended from the current 9 days to 15 days. Additionally, there will be a reduction in the number of storage bands for transit cargo, from 6 bands to 4 bands.
These changes are aimed at reducing costs and enhancing efficiency for importers and exporters using the port. The extended free period will provide more time for cargo owners to clear their goods and reduce the number of demurrage charges incurred. Demurrage charges are fees charged for the storage of goods beyond the free period, and the reduction in the number of storage bands will simplify the process of calculating these charges.
The customer notice is one of the many steps taken by the authority to improve the operational efficiency of the port and make doing business more cost-effective. It follows other recent initiatives, such as the introduction of the Single Window System, which allows for the electronic submission of import and export documentation, and the upgrading of port infrastructure to accommodate larger vessels.
The KPA’s efforts to streamline operations and reduce costs are particularly important given the competitive nature of the global shipping industry. By reducing the costs associated with using the port, the KPA can attract more business from importers and exporters, thereby boosting the regional economy.
A positive development for importers and exporters using the port, these changes will provide more time for cargo owners to clear their goods and simplify the process of calculating demurrage charges, ultimately reducing costs and enhancing efficiency.