Press Center | Freight Shipping Logistics News
KSC chief executive officer, Mr Gilbert Langat, said increasing piracy has led to a rise in the cost of sea freight through the Gulf of Aden, leading to the coastline attracting huge insurance premiums.
“Shipping lines are avoiding the region for fear of attacks, choosing to take a longer more costly route via Cape of Good Hope in the South,” the council says in a circular issued to members of the Kenya Association of Manufacturers (KAM).
He added that the council, in collaboration with Fresh Produce Exporters Association of Kenya (FPEAK), is assessing the impact of piracy on the economy.
The cost increase is registered in sea freight rates, insurance, time (longer voyage), operational (in surcharges), piracy, deviation (war risk), opportunity costs and loss of markets among others.
Mr Langat said KSC as a major shippers’ organisation representing importers and exporters, is collecting information to help develop a position paper on the impact of piracy on the economy.
“KSC is requesting companies for information that will help build a case for business. The government and international community have expressed interest in helping to mitigate the effects of piracy on Eastern Africa importers and exporters,” he said.
He added that KSC’s position will be discussed with the Kenyan Government, European Union (EU) and the US which has expressed interest in assisting to combat the menace.
Meanwhile, KAM is in the process of collecting views on challenges faced by industries in the implementation of the Noise and Excessive Vibration Control regulation being enforced by the National Environmental Management Authority (Nema).
The regulation, which was gazetted in May 2009 under Legal Notice 61, stipulates that any noise or vibration that can be heard beyond 30 metres will now attract a fine of Sh350,000 or an 18-month jail term.
The regulation came to effect in November 2009 after a grace period of six months, during which members of the public were required to adjust.
PARASTATAL heads who signed the Mombasa port community charter risk being sacked if their agencies do not deliver on the contents of the new entity. The charter signed between the government and the private sector aims at improving the movement of cargo from the port into hinterland