21 November 2012 17:05 [Source: ICIS news]
LONDON (ICIS)--Cargo-handling charges are likely to rise at the port of Mombasa, Kenya, because of increased traffic at the port and this could drive chemicals prices up, sources said on Wednesday.
Because Mombasa is the main gateway to eastern Africa and huge volumes of chemicals are offloaded at the port, which are then redistributed in the region, the tariff increase could drive the price of imported goods up, sources said.
The port authority is targeting a 10% increase, buyers said.
One buyer in Kenya said that this will lead to a $10/tonne (€7.80/tonne) rise in the price of imported caustic soda. However, because demand is currently poor, it has seen a drop in prices.
ICIS data shows that solid caustic soda in eastern Africa is traded at $650-670/tonne CFR (cost and freight) Kenya, but material is also offered at $630-650/tonne CFR Kenya from China, sources said.
According to media reports, container traffic at Mombasa grew by 24% in the first six months of 2012 to 10.7m tonnes of cargo.
($1 = €0.78)
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