Delays at Mauritius transshipment hub lead to congestion surcharges for container lines

  • November 29, 2024
  • News

Port Louis, Mauritius’ main transshipment hub, is facing significant cargo delays due to infrastructure challenges, which could affect the trade volume gains the island has seen in recent years.

In response to these delays, major container shipping lines have begun charging congestion surcharges for containers flowing into Port Louis. MSC will introduce a surcharge of $250 per TEU on Indian bookings to Port Louis, starting December 1, covering both dry and refrigerated cargo. The carrier explained that the surcharge is necessary due to the difficult operating conditions caused by the congestion in Port Louis.

MSC runs two weekly services to Mauritius from West India: the Indus Express and the Indian Ocean Relay Service 3, according to port traffic data.

Similarly, CMA CGM will add a $200 surcharge per TEU for shipments to Port Louis, starting December 15. The carrier stated that the surcharge is required to maintain service quality amidst the delays. CMA CGM’s Swahili Express (SWAX2) service also calls at Port Louis, as well as Nhava Sheva and Mundra.

Other shipping companies that serve Port Louis are expected to implement similar surcharges, according to industry sources.

India is one of Mauritius’ key trading partners, in 2021, India and Mauritius signed the Comprehensive Economic Cooperation and Partnership Agreement (CECPA) to enhance bilateral trade and investment. Under the agreement, India exports items like textiles, pharmaceuticals, quartz slabs, spices, and seafood to Mauritius. The CECPA grants free-trade access to over 310 Indian export items, while Mauritius benefits from access to 615 products from India.
The CECPA marked India’s first trade agreement with an African nation. The Indian Ministry of Commerce highlighted that this agreement would promote trade between the two countries.

Additionally, South Africa depends on Port Louis for transshipment operations. Maersk’s Safari loop rotation includes Port Louis, providing direct connectivity for exports from Cape Town to Asia.