Delays in cargo clearance at the Nairobi Inland Container Depot (ICD) have increased the cost of importing cargo. A survey by the Shippers Council of Eastern Africa (SCEA) reveals that only 40% of cargo is cleared within the 4-day free storage period, leaving 60% of the cargo to incur storage costs between KSh 3210 and KSh 9630 per day for every container.
A report by the Star shows that cargo clearance takes an average of 5-6 days, up from the previous 0-4 days within the free storage period.
By last week, 1774 Twenty-Foot Equivalent Units (TEUs) exceeded the 21-day stay at the facility. This is beyond the four-day free storage period, and the 17 days charged stay, after which KRA takes custody of the cargo. Under KRA custody, importers have to pay the rent for Custom warehouses, failure to which the agency auctions goods to recover costs.
The Federation of East African Freight Forwarders Association (FEAFFA) says that the volume of cargo that has overstayed for between 21-120 days grew by 9% to 581 twenty-four foot equivalent containers from last week’s 531.
Cargo Clearance is Taking a Toll from the Pandemic
Restrictions due to the pandemic have reduced the available staff for cargo clearance and moved some clearance functions online. This has impeded processes like verification and release, which cannot happen online. Further, clearance agents now require prior permission to access KPA and KRA facilities to solve clearance related problems, which fuels delays.
Working online also affected the timely delivery of actions necessary for clearance as there are not clear Service Level Agreements (SLA) for operations, and no rolling feedback on cargo clearance.
Nevertheless, FEAFFA notes that COVID is not the only factor behind cargo delays. Kenya International Freight and Warehousing Association (KIFWA) chairman Mr. Roy Mwanthi says that several importers and clearing agents do not submit clearing documents on time and fail to take advantage of the pre-arrival clearance window.
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