Importers in Kenya and Tanzania are bracing for higher business costs following a decision by Danish shipping giant Maersk to increase freight charges on cargo moving from China to East African ports.

 

Maersk announced a revision of its Peak Season Surcharge (PSS) applicable to goods shipped from China and Hong Kong to the ports of Mombasa and Dar es Salaam, effective June 15, 2026, charging $1,000 for every 20-foot container, up from $900.

The surcharge for a 40-foot container has risen sharply to $2,000 from $1,100, representing one of the most significant increases in recent years.

Similarly, 45-foot high-cube dry containers will now attract a surcharge of $2,000, increasing costs for businesses that rely on larger shipments.

The adjustment comes at a time East African economies are heavily dependent on imports from China for industrial equipment, electronics, construction materials, vehicles, and consumer goods.

Industry players warn that the higher freight costs will increase the final prices of imported products and place additional pressure on businesses already grappling with rising operational expenses.

For cargo destined for the Port of Dar es Salaam in Tanzania, the surcharge for a 20-foot container has increased from $750 to $1,000, while the charge for a 40-foot container has risen from $1,050 to $1,400.

Shipping analysts note that while both ports have experienced increases, cargo routed through Dar es Salaam remains relatively more expensive in some categories. Experts attribute this trend partly to congestion challenges and growing demand for cargo handling services at Tanzanian ports.“We expect more shipping lines to follow suit, the charges for Tanzania will continue to raise further compared to Kenya due to port congestion being experienced in Dar es Salaam port,” said John Mwasingo, a Mombasa based clearing and forwarding agent.

The surcharge applies strictly to non-spot bookings and is charged according to freight paid terms, affecting pre-arranged shipping contracts. For non-FMC bookings, pricing is now tied to the scheduled departure date of the first water leg at the time of booking confirmation,” the company stated.

The shipping line further noted that the revised rates were determined based on the applicable Price Calculation Date (PCD) and would remain subject to additional charges, including local port fees, contingency charges, and other applicable surcharges.

The announcement is expected to have far-reaching implications across East Africa’s supply chains because China remains the region’s largest source of imports.

According to data from the United Nations COMTRADE database, China accounts for approximately a quarter of East Africa’s imports. The Asian economic giant supplies a wide array of products critical to manufacturing, construction, transport, retail trade, and infrastructure development.

Economic analysts say that increased freight charges inevitably translate into higher landed costs, meaning importers will pay more to bring goods into the region. These additional costs are often passed on to wholesalers, retailers, manufacturers, and ultimately consumers.“Shipping costs are a critical component of the total cost of imports. Any increase in freight charges has a direct impact on product prices across multiple sectors,” said economist James Mwangi.

He noted that businesses importing machinery, electronics, steel products, and industrial inputs from China could experience significant increases in operational expenses over the coming months.

The latest surcharge increase comes amid growing concerns about the cost of doing business in East Africa. Many firms are still recovering from disruptions experienced during the global supply chain crisis and fluctuating exchange rates that have made imports more expensive.

For Kenya, the development is particularly significant because of the country’s heavy dependence on Chinese goods.

Trade data indicates that Kenya imported goods worth $4.3 billion from China in 2025. The imports included machinery and industrial equipment, telecommunications devices, electronics, motor vehicles, construction materials, iron and steel products, as well as various manufactured consumer goods.

In contrast, Kenya’s exports to China remain comparatively small, ranging between $200 million and $310 million annually. The country’s exports are mainly composed of tea, coffee, titanium ore, leather products, and a limited range of agricultural commodities.

The substantial trade imbalance means that any increase in freight charges is likely to have a greater impact on Kenya than on China, given the volume of imports entering the country.

The revised shipping charges have also sparked discussions regarding existing trade arrangements between Kenya and China.

While Kenya provides duty-free entry for used personal effects and selected personal goods brought in by travellers, commercial imports do not enjoy blanket duty exemptions. Most imported goods remain subject to the East African Community’s Common External Tariff and other applicable taxes.

Some products, including solar energy equipment, agricultural inputs, and selected industrial machinery, may qualify for tax exemptions or reduced rates under specific government policies. However, analysts argue that higher freight charges could erode some of the benefits associated with these incentives.

It remains unclear whether businesses will be able to absorb the additional shipping costs or whether consumers will ultimately bear the burden through higher retail prices.

In Tanzania, trade ties with China have expanded rapidly over the past decade. Bilateral trade between the two countries reached approximately $11.28 billion, making China one of Tanzania’s most important trading partners.

The growth has been supported by China’s zero-tariff policy for many African exports, which provides Tanzanian agricultural and manufactured goods with preferential access to the Chinese market.

Despite these gains, Tanzanian importers are also expected to feel the impact of higher freight charges, especially those involved in importing machinery, construction materials, and industrial equipment.

As the June 15 implementation date approaches, businesses across East Africa are closely monitoring the situation and evaluating how the new freight costs will affect their operations.

Many importers are expected to review procurement plans, negotiate new supply arrangements, and explore ways of reducing logistics expenses.

For consumers, the effects may not be immediate, but economists warn that sustained increases in shipping costs often find their way into the prices of everyday goods.

With East Africa’s economies increasingly integrated into global trade networks, developments in international shipping continue to play a crucial role in determining the cost of goods, business competitiveness, and overall economic growth.

© Copyright 2026 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).