Gambiaj.com – (BANJUL, The Gambia) – Global shipping giant CMA CGM has announced the implementation of a Port Congestion Surcharge (PCS) for cargo shipments destined for Banjul, The Gambia, citing ongoing logistical challenges at the port. The surcharge will come into effect on December 15, 2024, and will apply exclusively to dry cargo transported from the Far East, including China, Hong Kong & Macau SAR, North East Asia, and South East Asia. The surcharge is set at USD 500 per container.

This is the fourth time CMA CGM has raised container shipping tariffs for Banjul in 2024. The surcharge reflects CMA CGM’s response to increasing port congestion and delays in Banjul, a critical entry point for goods in the region. The company stated that this measure aims to offset operational costs and ensure timely deliveries amid the disruptions caused by congestion-related delays.

Port Challenges in Context

Banjul Port, operated by The Gambia Ports Authority (GPA), has faced growing strain due to rising cargo volumes, aging infrastructure, and inefficiencies in processing goods. Recent efforts by GPA to improve port operations, such as digitizing customs systems and expanding docking facilities, have yet to fully resolve these issues.

Congestion often results in long vessel waiting times, delayed deliveries, and increased operational costs for shipping companies.

The new PCS will likely impact businesses and importers relying on goods from the Far East, a key trading partner for The Gambia. Imports from the region include electronics, textiles, and construction materials, which are vital for local markets and development projects.

As a result, the additional cost may be passed on to consumers, potentially driving up prices of essential goods.

CMA CGM’s decision is part of a broader trend in the global shipping industry, where port congestion surcharges have become increasingly common as shipping lines navigate logistical challenges worldwide.

Ports in many developing countries have struggled to adapt to post-pandemic increases in trade volumes, exacerbating delays and costs.

The move by CMA CGM underscores the importance of speeding up in addressing port infrastructure challenges in The Gambia to support economic growth and maintain competitiveness in regional trade.