Higher piracy surcharges threatened for East Africa services

CMA CGM has confirmed it is one of the container lines levying a piracy surcharge.

EAST African shippers face a further increase in piracy surcharges as the risk of attacks in the region worsens. Local industry sources say container lines are considering doubling the average levy to $50 per teu from the start of next month. The warning comes after Kenyan shippers complained about the additional charge of between $20 and $25 per 20 ft box that most lines calling at Mombasa are already demanding. The fee is even higher for cargo moving through Djibouti, closer to the Somali border. CMA CGM has confirmed it is one of the container lines levying a piracy surcharge to cover the risk of operating in waters where attacks are commonplace. The French line said it applies a piracy risk surcharge of $20 per teu on its Swahili Express service that links Kenya, Tanzania and Mozambique and on its on Asia-East Africa rotation between Singapore, Port Kelang, Kenya and Tanzania. Both call at Mombasa where cargo interests have vented their anger about the additional costs of shipping cargo.

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