MOMBASA freight providers are migrating cargo to air freight to avoid add-on costs imposed by ocean shipping companies and surcharges used to offset rising oil prices, reports Nairobi's East African.

    Unlike shipping lines, road and air freight providers are unable to recoup losses in surcharges and often are locked into long-term contracts of up to five years in length.

    The cost of fuel is up 40 per cent year on year and set to climb as high as $120 a barrel by 2035. Current fuel surcharges from Maersk are set at US$925 per TEU and $1,850 per FEU.

    Despite rising shipping surcharges, Kenya Transporters Association (KTA) is often slow to revise regional charges and have remained standard since July, said Mombasa-based logistics provider Signion managing director Meshack Kipturgo.

    Further KTA restrictions on collecting goods on a return journey unless from country of origin avoid customers via countries on route such as a container's journey from Mombasa to Rwanda missing out pick-ups in Uganda.

(source:http://www.shippingonline.cn/news/newsList.asp?page=2&classname=News)