(JUBA) – Authorities in South Sudan are urging local importers to return empty shipping containers to the Port of Mombasa, following reports that many recipients are converting them into makeshift homes and business premises instead of releasing them to shipping companies. This practice has led to rising logistics costs and complicated the movement of goods into the country.
The South Sudanese government is appealing for cooperation to help stabilise freight costs and maintain proper shipping practices. Kenyan port and customs authorities also back this effort.
According to the Kenya Revenue Authority (KRA), a customs bond is placed on all cargo destined for South Sudan to guarantee its lawful movement. However, some South Sudanese importers mistakenly assume that the containers used to transport their goods are part of the consignment. As a result, they withhold the containers once the cargo is offloaded.
In a public statement, the South Sudanese Embassy in Nairobi clarified that “shipping containers remain the property of the shipping lines, unless they have been formally purchased by the importer and are backed by valid ownership documents.”
This misunderstanding has created logistical setbacks. Shippers at the Port of Mombasa are being forced to repackage cargo intended for South Sudan, and shipping companies are now demanding higher bond payments to cover losses. These extra costs are passed down to South Sudanese traders and, ultimately, to consumers.
South Sudan’s status as a landlocked country already presents serious logistical challenges. These include long transit routes, insecurity, infrastructure limitations, and theft risks all contributing to high transport costs.
According to World Bank data, South Sudan is among the most expensive countries in East Africa to import goods, with logistics and customs challenges adding up to 30% to final retail prices.
Clearing agents have significantly increased security deposits for container handling due to the high risk of theft and non-return. Roy Mwanthi, managing director of Inland Africa, a company that facilitates cargo movement to Juba, said agents charge between $3,000 and $6,000 (SSP 13.8M–27.6M) as container security deposits.
“The cost, in case of theft, is huge. It can rise up to $30,000 (SSP 138M) for a refrigerated 40-foot container, on top of $1,400 (SSP 6.44M) for clearance fees,” Mwanthi told The EastAfrican, adding that the issue significantly drives up the cost of shipping goods into South Sudan.
A statement by the South Sudanese embassy said these practices have added pressure on traders and consumers in an already import dependent economy.
“Containers should not be treated as part of the consignment unless ownership can be proven through official documentation. Importers can help reduce bond requirements and lower shipping rates if South Sudan traders cooperate,” the statement, dated July 18, reads.
Agambo Ogayo, CEO of the Shippers Council of Eastern Africa (SCEA), said government oversight is urgently needed, noting that containers are a crucial part of the shipping infrastructure and must be returned within the free grace period given by shipping lines.
Shipping lines typically allow containers to be returned within 28 days (or 15 days for refrigerated units) without charge. After this period, demurrage fees are applied. Mr Ogayo explained that over $1.5 billion is paid in container deposits annually across the East African region. Delays in returns contribute to the high cost of doing business, a burden often passed to the end consumer.
The Shippers Council is currently negotiating for better terms on container guarantee schemes, but the ongoing problem of container theft, particularly in South Sudan, continues to complicate matters.
The Port of Mombasa remains the primary gateway for imports into South Sudan, which relies heavily on this corridor for its international trade. On average, Juba imports about 1.5 million metric tonnes of cargo annually through the Kenyan port.
| Container Cost Impact | Amount (USD) | Amount (SSP) |
|---|---|---|
| Security Deposit for Each Container | $3,000–$6,000 | SSP 13.8M–27.6M |
| Clearance Fees per Container | $1,400 | SSP 6.44M |
| Theft Liability for 40ft Refrigerated Container | $30,000 | SSP 138M |
| Annual Container Deposit Costs in East Africa | $1.5 Billion | SSP 6.9 Trillion |
Emmanuel Kachoul, who heads the South Sudan Freight Forwarders and Business Community at the Port of Mombasa, said the group is working closely with the South Sudan Revenue Authority (SSRA) to develop policies to address container theft and non-return.
“We expect the SSRA to issue a directive soon on the container retention issue. It is illegal to keep containers after cargo delivery,” Kachoul warned.
Efforts to resolve the issue come as South Sudan seeks to streamline its cargo movement systems and reduce the high costs burdening its import sector.