Businesses face losses as shippers ground vessels
Major shipping lines serving Eastern Africa have announced commodities supply disruption...
✨ Key Highlights
Major shipping lines are disrupting commodity supplies to Eastern Africa and grounding vessels due to increased risks and costs associated with the ongoing Israel/US-Iran war, with passage through the Suez Canal suspended.
- Shipping lines like Maersk and CMA CGM are rerouting vessels around Africa, significantly increasing transit times from 18-20 days to up to 45 days for shipments to Europe.
- This disruption will lead to longer waits for Kenyan exports like tea and coffee at the Port of Mombasa and is expected to increase the cost of petroleum products by nearly 20 percent.
- An emergency conflict surcharge of $20-$40 per 20-foot container has been introduced by shipping lines, impacting businesses like avocado exporters facing cold-chain disruptions and higher rejection rates.
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