Kenya Ports Authority (KPA) has offered an extension period for free storage of cargo containers. The free storage extension period will be provided for both importers and exporters on the back of the current crisis.
KPA’s extension period is aimed at easing the conditions for cargo owners who might face high charges as their stored consignment awaits clearance, media reports said. KPA’s acting Managing Director Rashid Salim said in a statement, “Kenya Ports Authority wishes to announce to the general public of extension of free storage period to its customers. This is in line with our continuous and deliberate efforts of cushioning our customers on effects of the coronavirus.”
It appears that the pandemic has impacted the logistics sector at large. The new extension is effective May 18 for a period of three months. It is reported that domestic export containers will get an extension of up to 15 days free storage period. That said, transport containers at the port and Inland Container Depot (ICD) will get an extension of two weeks from the previously fixed nine days.
Also, importers and exporters will face charges ranging between $30 and $90 per day for cargo at the port beyond the extension period. The charges largely depend on the container’s size, a local media reported said. “Please note that the extension is valid for 90 days from the effective date and is subject to review thereafter depending on the business dynamics,” Salim said.
It is reported that clearance in Uganda and other hinterland countries has reduced by more than 50 percent.