Importers are paying higher costs to ship goods as disruptions linked to tensions around the Strait of Hormuz ripple through global shipping routes, forcing vessels to take longer and more expensive alternatives.
Kenya Ships Agents Association chief executive Elijah Mbaru said the crisis has triggered an increase in freight charges, insurance premiums and transit fees- costs that are passed on to importers and ultimately consumers.
‘Any cost that a ship undergoes is transferred to the importer or exporter and eventually to the consumer,’ Mr Mbaru said in a phone interview.
Two months into the conflict, shipping lines, also referred to as ocean carriers, are still grappling with uncertainty, with vessels frequently forced to reroute.
In March, major shipping lines, including Maersk, CMA, CGM and MSC, introduced emergency conflict surcharges of between $20 and $40 for 20-foot containers in reaction to the heightened risks.