Transporters hit as port's empty containers backlog crisis worsens

Mombasa port users are bracing for higher operational costs as severe delays in the handling of empty containers continue to paralyse logistical operations.

What began as isolated blockages at a few Empty Container Depots (ECDs) has now escalated into a full-blown logistical crisis, prompting Kenyan transporters to invoke contractual rights that have long been overlooked by shipping lines and clearing agents.

For months, transporters returning empty containers have encountered an alarming lack of space at designated depots. Trucks carrying empties remain immobilised for days, sometimes longer, waiting for a slot to offload.

Each hour lost on the road translates into additional fuel expenses, delayed cargo pick-ups, lost business opportunities, and multifaceted financial losses that transporters argue are entirely beyond their control.

The Kenya Transporters Association (KTA), the industry’s principal lobby, has now declared that the burden cannot continue to rest on transporters.

KTA argues that the congestion crisis is not a failure of trucking companies but a direct breach of contractual and legal obligations by shipping lines and, to some extent, clearing agents who have failed to enforce accountability.

Under standard contractual arrangements, shipping lines are required to ensure that adequate space exists at their designated ECDs for the return of empty containers.

They must also provide clear, timely instructions on drop-off locations and honour guarantees for empty-container handling.

According to KTA Chairman Newton Wang’oo, shipping lines cannot legally shift liability to transporters when their designated ECDs have no space.

“When designated depots are full, responsibility lies with the shipping lines, not the clearing agents, and certainly not the transporters,” he insists.

Transporters, he says, have already absorbed significant losses while waiting for industry stakeholders to correct the growing dysfunction.

In a decisive move intended to protect transporters’ business viability, KTA has directed all members to begin charging truck detention fees of $300 (Sh38,700) per truck daily whenever ECD congestion prevents the return of empty containers.

Transporters must also meticulously document all attempted deliveries, including photographic evidence, timestamps, rejection notices, and daily logs. 

These records must be reported promptly to the contracting parties and preserved for potential legal claims.

The imposition of detention charges comes at a time when logistics costs in the region are already extraordinarily high. According to the Shippers Council of Eastern Africa (SCEA), logistics costs account for a staggering 35 to 42 per cent of total landed cargo costs in East Africa compared to 8 to 10 per cent in Europe.

These figures have raised concerns among traders, economists, and regional governments worried that inefficiencies at Mombasa could undermine trade competitiveness.

Speaking at a Nairobi stakeholders’ forum in July, SCEA Chairman John Msafari warned that persistent delays continue to fuel high storage charges, demurrage penalties, and a tightening regulatory environment.

“Our members are still grappling with systemic inefficiencies that make cargo movement slow, unpredictable, and costly,” he said.

The empty-container congestion now crippling Mombasa is part of a wider structural problem linked to rapid cargo growth, insufficient infrastructure, and delayed expansion projects.

Cargo volumes at the port have surged far beyond projections. Mombasa handled 41.1 million tonnes in 2024, up from 36 million tonnes the previous year. Imports grew by 7.2 per cent, exports by 6.6 per cent, and transit cargo mainly destined for Uganda, South Sudan, Rwanda, and parts of the Democratic Republic of Congo jumped by 17.4 per cent.

Container traffic surpassed 2 million Twenty-foot Equivalent Units (TEUs), marking a 23.5 per cent increase and pushing the port dangerously close to its maximum installed capacity of 2.4 million TEUs.

With first-half performance in 2025 suggesting further increases, Mombasa could soon exceed its processing limit, triggering widespread delays across the logistics chain. 

Despite these surges, several planned infrastructural upgrades, including yard expansions, equipment modernisation, and ECD capacity increases, have either stalled or begun too late to cushion the spike in cargo volumes.

The situation has been exacerbated by the festive season, which has brought over 50 vessel calls per week, overwhelming yard space, and drastically stretching handling capacity.

Most empty containers cannot be stored inside the port due to space limitations. Instead, they must be taken to one of five ECDs around Port Reitz, which collectively hold a maximum of 28,000 TEUs—a figure that has not expanded in years despite exponential cargo growth.

When congestion occurs, port operations prioritise imports and exports, pushing empty-container handling down the priority list.

This has left shipping lines unable to evacuate empties quickly enough to match vessel schedules, compounding delays and spreading disruptions across the supply chain.

Moreover, the Kenya Ports Authority’s (KPA) new Fixed Berthing Schedule—intended to improve vessel-planning efficiency—has inadvertently added pressure. The schedule allocates strict berthing windows, meaning that late movement of empty containers disrupts loading plans and increases turnaround times for ships.

Among regional trade partners, South Sudan has been hit hardest by the empty-container crisis. As Mombasa’s second-largest transit market, after Uganda, South Sudan relies almost entirely on the Northern Corridor for imports of food, fuel, construction materials, and essential goods.

The journey from Mombasa to Juba and back takes 7–10 days under favourable conditions. Trucks must navigate two borders and a stretch of road between Nimule and Juba, where night travel is prohibited due to insecurity. Returning an empty container to Mombasa within the usual 15-day free period is virtually impossible.

As a result, South Sudanese importers face steep demurrage fees and are required to pay container deposits of up to USD 10,000. Juba has repeatedly petitioned for an extension of free days to 45 and a reduction of the deposit to USD 1,500.