Why Freight costs at Mombasa Port have increased by 50pc

The cost of freight has shot up by 50 per cent after shipping lines imposed an Emergency Conflict Surcharge (ECS) on Mombasa and other regional ports due to the US-Israel war against Iran. In a notice dated March 3, 2026, the shipping lines said the surcharge will cover the extra 40 to 45 days ships will take to go around the Cape of Good Hope due to the raging conflict. Traditionally, ships from Europe use the Red Sea route and take 18 to 20 days to arrive in Mombasa. This extra cost is expected to reflect on the prices of essential goods. The Mediterranean Shipping Company (MSC) said importers will pay an extra Sh158,000 for a 20ft container, Sh387,000 for the 40ft container and Sh516,000 for the reefer containers. It instructed its fleet inside the Gulf and bound to the Gulf to proceed to shelter immediately, adding that passage through the Suez Canal has been suspended until further notice. "Vessels will be rerouted via the Cape of Good Hope. CMA CGM introduces an emergency conflict surcharge at 2000 USD/20 ft, 3000 USD/40 ft and 4000 USD reefer," the liner said in a notice. Among the exports expected to be hit the hardest are those of avocado, whose shipment is likely to start in two weeks' time following the start of the harvest season. There is growing fear among exporters about possible delays and losses of the fresh produce consignments following the use of a longer route to European markets. Yesterday, tea traders in Mombasa were also worried that the blockage in the Middle East, following the conflict, could cut off key tea markets such as Oman and Yemen. The Shippers Council of Eastern Africa (SCEA), which represents the interests of importers and exporters, said the re-routing of vessels through the Cape of Good Hope following the blockage of the Red Sea that connects to the Mediterranean will affect shipments from Mombasa to Europe. SCEA Chief Executive Agayo Ogambi said the Europe-bound shipments, which take 18 to 20 days, will take up to 40 to 45 days, raising the freight cost and cold chain disruptions. "The Red Sea, which connects to the Mediterranean, ensures that shipments from Mombasa reach Europe in 18 to 20 days. As a result of re-routing, it shall take up to 40 to 45 days," he said. "This will lead to cold chain disruptions, higher rejection rates and financial losses for exporters. Freight cost will increase, and most likely surcharges will also be introduced," noted Ogambi. Eat African Tea Trade Association (EATTA) Chief Executive George Omuga said direct tea exports from Mombasa to Iran were stopped in 2023. He, however, noted that the consignments to key markets like Oman and Yemen use the same route, and hence, there will likely be a disruption following the conflict. Omuga said tea export to Sudan was stopped in March last year, and hence the ongoing conflict will not hit them, while another market, Egypt, is not affected because it is on the Mediterranean. "The Red Sea blockage will affect our market in Oman and Yemen. If the blockage lasts long, oil prices will skyrocket and hence affect tea farmers who use generators," he explained. He expressed relief that Pakistan, which buys 40 per cent of the Kenyan tea export, is not affected by the Middle East blockage. The United Nations Conference on Trade and Development (UNCTAD) indicates the Red Sea as a crucial maritime trade corridor in the world, handling over 30 per cent of global shipping traffic. The surcharge covers Bahrain, Djibouti, the Egyptian port of Ain Sokhna, Eritrea, Iraq, Jordan, the Kingdom of Saudi Arabia, Kuwait, Oman, Yemen, Qatar, Sudan and the United Arab Emirates. "Please take note that for specific origins, this surcharge may be included in the freight rate. We remain fully committed to maintaining service continuity and transparency during this challenging period. Our teams are closely monitoring the situation and will continue to keep you informed of any significant developments," said the statement. Maersk Line has also advised all sailings to go around Africa instead of the Suez routing, while MCE has suspended all bookings for worldwide cargo to the Middle East. Despite Mombasa port having a refrigeration facility for the preservation of the avocado before being shipped to its destination, there is fear of the duration of the cargo's travel before arriving at its destination through the Cape of Good Hope route. There is fear among European importers that after rerouting some horticulture, such as avocado, it might face cold chain disruption, leading to higher rejection after arriving in the market. Longer transit time and increased freight costs have forced European importers to reconsider their sourcing strategies, leading to a significant shift in global market preference. Kenya's horticulture fears European importers will prefer markets in South Africa and other markets where supply chain disruptions have been minimal. Ogambi asked the government to consider subsidising airfreight and giving tax relief to the horticulture exporters. Kenya exports tea, coffee, and avocado through the Mombasa Port, which has development and exportation facilities. The severe effects which have raised the shipping lines operating along the Red Sea route have advised importers to brace themselves for the high cost of transporting their cargo to various destinations. The Strait of Hormuz, a narrow waterway connecting the Persian Gulf to the open ocean, has long been described as the world's most important oil chokepoint. Although most of the discussions have been about the oil tankers and crude prices, often overlooked is that the channel is used by container ships that carry the physical goods of the global economy. ''Tensions have escalated to a point where commercial shipping has been brought to a standstill, and the ripples of this halt will be felt far beyond the immediate coastline of Iran,'' said Andrew Mwangura. Mwangura, an independent maritime consultant, said, following recent announcements regarding a Gulf closure, an unprecedented maritime freeze is evident. He said the Hongda Xin, a substantial 6,700 TEU vessel, sits halted en route while other commercial carriers like the MSC Mira, CMA CGM San Antonio and the Maersk Boston-names that are normally synonymous with relentless global movement-are now symbols of global fragility. Report by Willis Oketch, Philip Mwakio and Patrick Beja

Why Freight costs at Mombasa Port have increased by 50pc

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