Kenyan Businesses Face Losses as Shippers Ground Vessels Over Middle East War

Major shipping lines serving Eastern Africa have grounded vessels and suspended bookings for cargo headed to the Middle East after the escalation of the Israel-US-Iran war introduced fresh risks and extra operating costs.

Maersk, CMA CGM and MSC issued simultaneous advisories that halted normal operations. CMA CGM told vessels already inside the Gulf or bound there to head straight to shelter. The line also suspended all passage through the Suez Canal with immediate effect. Maersk responded by ordering every sailing to divert around the African continent.

The carriers added emergency conflict surcharges of between $20 and $40 for every 20-foot container. These extra fees come on top of higher freight rates caused by the longer routes.

Kenya’s tea and coffee exporters now face longer waits at the Port of Mombasa. Vessels that normally call there have altered their schedules, leaving containers piled up on the quay. Petroleum importers expect significantly higher prices once the new supply chains settle.

Kenya Ships Agents Association chief executive Elijah Mbaru described the situation as more than passing geopolitical tension. He warned that the reported closure of the Strait of Hormuz would deliver a structural blow to global supply chains. Oil prices could rise by almost 20 per cent because the strait carries much of the world’s crude.

Mbaru added that ocean freight rates for tankers, bulk carriers and container ships would surge while transit times stretch out. Container imbalances and unreliable schedules would follow, pushing up the cost of food, transport and fertilisers across the region.

On Sunday, an oil tanker named Skylight came under attack near the Strait of Hormuz. The Malta-flagged vessel was struck about five nautical miles north of Khasab Port inside Omani waters. It caught fire. All 20 crew members were evacuated, though four suffered injuries and required hospital treatment.

Shippers Council of Eastern Africa chief executive Agayo Ogambi pointed out that the timing could hardly be worse for Kenyan avocado exporters. The fruit is now in peak season. Normal Red Sea routing gets shipments from Mombasa to Europe in 18 to 20 days. The Cape of Good Hope detour stretches that to as much as 45 days.

Cold-chain interruptions will follow. Higher rejection rates at destination markets are likely, leaving exporters out of pocket.

The Red Sea corridor handles more than 30 per cent of global shipping traffic. Any sustained blockage, therefore, sends ripples far beyond the immediate conflict zone.

Maritime analyst Andrew Mwangura said the episode would trigger wider oil supply shocks. Energy prices would climb even in countries that do not buy directly from the Gulf.

The Port of Mombasa functions as the main gateway for Kenya and at least five neighbouring countries, including Uganda, Rwanda, South Sudan, Burundi and the eastern Democratic Republic of Congo. Delays here quickly affect landlocked economies that depend on the facility for both imports and exports.

Insurers have already begun pulling coverage for vessels entering the high-risk area. That move adds further pressure on operators and raises the prospect of even tighter capacity in the coming weeks.

No immediate government statement has addressed the shipping disruptions or outlined steps to ease the backlog at Mombasa. Exporters and importers are left to absorb the higher costs and longer waits while the conflict continues.