News / CMA CGM accused of cashing in on Tanzania troubles with surcharges

Credit Tanzania Port Authority.

African forwarders have slammed CMA CGM’s port congestion surcharges (PCS) in Mozambique announced this week as a “cynical” way to capitalise on the post-election chaos enveloping Tanzania.

The French carrier confirmed that from 15 November it would tack a $200 per teu PCS on all shipments to Beira, but on those from the US and Latin America on 3 December, in line with Federal Maritime Commission rules requiring one month’s notice.

Justifying its decision, CMA CGM pointed to the terminal’s “present situation”, but one forwarder in the region told The Loadstar the move may have been a response to delays – which they put at “two weeks” – due to “terrible weather”.

Others are less sure. A source said: “Although there is a slight vessel berthing congestion in Beira, I think it is just the shipping line being opportunistic of the situation in Tanzania, to increase the already high sea freight charges to Beira.

“It is also a way of causing the port-to-port consignments to use liner freight forwarding agency services rather than using the other port freight forwarding agents – it is both unfair and anti-competitive.”

Some thought it may also be a way to reduce further delays in a region contending with port closures in Tanzania – brought about by a curfew imposed after post-election protests over Samia Suluhu Hassan’s re-election last week – and problems in neighbouring Kenya.

There the port of Mombasa had already been contending with congestion as a consequence of an upturn in vessels calls, and now that is compounded by the rerouting of ships from Tanzania’s port of Dar es Salaam, which had closed during the troubles.

An advisory from Inchcape Shipping Services noted: “As of 4 November, port operations in Dar es Salaam are beginning to resume, gradually. However, service disruptions are still expected due to heightened security measures and restricted movement across the city.”

Another source told The Loadstar that they did not believe issues in Mozambique were sufficient to have a major impact on regional supply chain flows.