An increased demand for empty containers in China has hit Kenyan exports as shippers send back empties instead of carrying export cargo. This fact, coupled with increased freight charges due to the global vessel shortage is now threatening Kenya's international trade.. The high demand for empties in China is as a result of reopening of industries after a slow down during the peak of the Covid-19 pandemic last year, with the Asian country rushing to clear orders for its exports, mainly to Europe and the US.
Industry players claim that containers of all sizes—20-foot and 40-foot are in short supply. China is said to be paying handsomely for the return of empty containers, a move that the Kenya Association of Manufacturers (KAM) says is making it attractive to vessel owners.
“This has resulted in cargo ships scrambling for empty containers from the diverse ports in order to transport them back to China. It results in exports goods lacking space on cargo ships, as ships are allocating space to empty containers,” KAM chief executive Phyllis Wakiaga told the Star.
According to the Shippers Council of Eastern Africa (SCEA) the rates have gone up three times in some cases $12,000 (Sh1.3 million ) to ship to Europe, which is also experiencing a high demand for empty containers.
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