Freight Market Updates
Freight Market Update: July 12, 2021

Freight Market Update: July 12, 2021

August 20, 2021
July 15, 2021

A Sendy Freight Weekly Round-Up to keep you informed on all things freight and logistics in the region.

Freight Traffic:

Freight services steady for SGR despite low vessel numbers.

A decrease has been noted in the number of vessels calling at Mombasa port, but that has surprisingly not affected operations of the standard gauge railway.

A report carried out by the Kenya Railways Corporation indicates that total tonnage was at 378,977 tonnes in the month of June, a noticeable drop from 383,109 in May and a further drop from 451,208 in April.

The report also indicates that the period under observation showcased low volumes due to lower vessel numbers.

Source: The Star, July 5, 2021.

Northern Corridor Cargo Traffic Drops By 4%.

There has been a huge impact on business operation in the northern corridor of the East African community due to the effects of the covid-19 pandemic causing restrictions on business operations.

Logistics firms have seen a direct effect on the movement, storage, and flow of goods.

The prediction is that supply chain disruptions to the sector caused by the pandemic could impact transport and trade costs in the near future.

The northern corridor connects Mombasa port to most key trade points in the rest of the region.

Source: Taarifa Rwanda, July 6, 2021.

COVID-19 Update:

Cross-Border Truck Drivers Warned Against transporting passengers.

Uganda's professional drivers' network has warned all truck drivers traveling across borders against carrying passengers in a bid to help curb the surging numbers in the covid-19 pandemic.

According to a Ministry of Health survey carried out in 2020, drivers who tested positive at the border were being infected by unauthorised passengers and sex workers they interacted with along their journey.

This has continued in the year 2021 and the drivers have been further encouraged not to interact to help reduce transmission.

Source: The Daily Monitor July 7, 2021.

Trade Deficit Widens on Machinery Imports Rise.

Kenya’s trade deficit has widened by 29.7% to 240 billion shillings.

The import bill grew by 22.5% to a record 669.4 billion shillings largely owed to commercial goods which accounted for 97% of the expenditure.

However, total expenditure receipts showed growth at a relatively slower pace of 12.2% to 248 billion shillings.

The rise in imports that has driven the four-month deficit to an all-time high is indicative of a recovering economy after a major hit from the covid-19 pandemic and is seeing a steady return to pre-pandemic levels.

Source: Business Daily Africa, June 30, 2021.

Freight Updates:

Cargo Clearance points linked to Kenya Revenue Authority.

In an effort to reduce goods clearance time and enhance transparency at the port of Mombasa, KRA has linked over 23 points.

A 2.6 billion fiber-optic network was commissioned connecting 23 clearing points to one centralized location at the Nairobi headquarters.

The newly introduced infrastructure will greatly improve efficiency in revenue collection.

Source: Business Daily Africa, July 7, 2021.

Construction commences on Shimoni Fishing Port.

Kwale county is now on track to have a leading fishing port and hub in Kenya.

Kenya ports authority commenced construction on the project recently and contends that the port will be a pioneer fishing hub for the entire country and create economic growth opportunities for the coastal region.

The proposed industrial fishing port infrastructure will include a multipurpose berth that will incorporate fish and conventional cargo handling and cold storage facilities besides a fish processing plant.

The mandatory requirements like feasibility studies and environmental impact assessments have been conducted and the project is expected to be complete in the next 24 months.

Source: Kenya News, July 1, 2021