Mombasa Port's empty containers crisis deepens ahead of peak season

The empty containers crisis is re-emerging in Kenya's logistics chain after trucks carrying them are reportedly denied entry into Nairobi Inland Container Depot (ICDN) on weekends because of slow evacuation.

The development has raised concern among transporters that the problem could spread through the inland logistics network as the Christmas season approaches, which pushes cargo volumes up.

Traditionally, Mombasa faces congestion and higher shipping surcharges as it enters its traditional peak importation period from late September through to December as traders rush to restock ahead of the festivities.

During the peak season, shipping lines increase Peak Season Surcharges (PSS), crane productivity at the port is overstretched, and delays in the processing of documents by the Kenya Revenue Authority (KRA) are common.

Haulage sector players say this is a warning of a problem that has not been fully resolved — the inability of the logistics chain to move empty containers out fast enough after import cargo has been delivered.

In June this year, the Kenya Ports Authority (KPA) introduced measures to manage the flow of empty containers at the port of Mombasa to reduce persistent congestion that slows cargo movement.

One of the measures was that empty containers would remain in intermediate storage depots for at least 72 hours before being moved to ships to allow smoother and coordinated operations.

This replaced the practice of containers being loaded directly from depots to the quay. Shipping agents were also required to submit requests for empty container handling at least seven days before a vessel’s arrival.

Logistics players say that the measure may have transferred the problem from the Port of Mombasa to Inland Container Depot – Nairobi (ICDN).

Kenya Transporters Association (KTA) Chairman Newton Wang'oo warned of the crisis that the accumulation of empty containers was effectively turning trucks into storage facilities.

“Our trucks are acting as storage facilities. We cannot deploy them for other work, and our business is no longer viable,” Wang'oo said at the time.

The situation illustrates the fragile chain through which empty containers move. After importers collect their cargo, they are required to return the empty containers to designated Empty Container Depots (ECDs) in Mombasa, either by road or through the Standard Gauge Railway (SGR).

But when the ECDs fill up because shipping lines are not evacuating empties quickly enough, the system backs up. Trucks arriving with empty containers are denied entry because there is no space to receive them.

The containers then remain on the trucks, tying up transport equipment, or are redirected to another facility. Those on SGR eventually find their way back into the port, where yard space is already under pressure.

This creates a vicious cycle: full ECDs lead to truck lock-outs; truck lock-outs slow cargo movement; and containers that cannot be discharged consume scarce transport and storage capacity.

The problem is partly rooted in the limited number and capacity of ECDs serving Mombasa. Unlike container terminals, which have benefited from major public investment, the private empty-container network has limited space to absorb large volumes when evacuation slows.

At the height of the crisis, KTA called for shipping lines to take responsibility for the idle equipment and argued that transporters should not bear costs arising from delays beyond their control. Industry reports also showed trucks spending hours or days waiting to return empties.

“The transporter is paying for the truck, paying the driver and meeting other operating costs, yet the truck is not generating any revenue because it is being used to store an empty container,” Wang'oo said.

Shipping lines control the movement of their equipment, and empty-container repatriation is closely linked to vessel schedules, available yard space and the next port of call.

Mahadi ECD General Manager Eric Wambua explained last year that a process that previously took about a week had stretched to two weeks.

“Recently, we were advised to return 500 containers. We managed only 60 before being told no more space was available at the port,” Wambua said.

Shipping lines cannot simply keep vessels waiting indefinitely for containers to be returned due to tight time allocation at KPA. Once a vessel reaches its berthing and sailing window, it must depart to meet its next port call and give room for other vessels. Empty containers that miss that window can therefore remain at ECDs for another cycle.

For ECD operators, this means space can remain occupied for longer than anticipated. For transporters, it means trucks cannot be released back into the market.

Shipping lines also have a commercial incentive to prioritise export cargo. Export containers generate revenue and must meet strict vessel cut-off times, while empty containers are primarily equipment to be repositioned to markets where they are required.

Gilbert Muhonji, a Nairobi-based transport economist, said this commercial imbalance often leaves empty containers at the bottom of the priority list when shipping lines are managing limited vessel and yard capacity.

“Shipping lines will naturally prioritise cargo that earns them revenue and has a fixed vessel cut-off. Empty containers, on the other hand, are an operational obligation that can be deferred when there is pressure on space and schedules,” Muhonji said.

Industry players say this imbalance has contributed to the prolonged accumulation of empties. The situation becomes even more complicated when containers are moved by SGR.

Rail can remove containers from Mombasa, but it does not automatically solve the empty-container problem. Once the empties reach Nairobi, they still have to be received by the designated depot and eventually evacuated by the shipping line. If the depot is full, the container may have to be moved again, adding another layer of cost and congestion.

The crisis last year prompted intervention by the Kenya Maritime Authority (KMA), which issued notices requiring shipping lines and agents to expedite the evacuation of empty containers from Mombasa and the Port Reitz interchange.

KPA also made additional stacking space available to ease pressure.  However, industry players regarded the measures as emergency interventions rather than a permanent solution. The fundamental problem of inadequate empty-container capacity and slow evacuation remained.

The pressure is now returning at a time when Mombasa is handling growing volumes. The port's container-handling capacity is about 2.3 million Twenty-Foot Equivalent Units (TEUs), while planned expansion is expected to raise this to about 3.1 million TEUs.

Berth 19B is expected to provide an additional 300,000 TEUs of annual capacity, but the additional infrastructure cannot provide an immediate answer to the current empty-container problem.

The delay in bringing additional capacity fully into the system means existing facilities will continue to carry much of the pressure. That is particularly concerning as the Christmas peak approaches.

The Middle East crisis adds another layer of uncertainty. Disruptions around the Red Sea and Bab el-Mandeb have forced shipping lines to adjust routes and schedules, potentially affecting vessel frequency, equipment positioning and the timing of container movements.

Any disruption to these schedules could have a direct effect on the evacuation of empties.

With the Christmas trading season approaching and uncertainty surrounding international shipping schedules, transporters are now asking whether the lessons of last year's crisis have produced a lasting solution.