Freight Market Updates

Weekly Industry News: Aug 02 - Aug 09

Sendy
July 29, 2021
August 11, 2021

Read all about it! Sendy is rounding up the latest news from different publications on what’s happening in the logistics industry, regionally, for you. Enjoy bite-sized easy-to-read information that will keep you up to date on all things Freight!

Freight Traffic 

Transit Cargo at Mombasa Port declines by 5% in Q4. 

Transit at the Port of Mombasa declined by a groundbreaking 5% in the final quarter of the financial year 2020/2021 this was primarily due to reduced freight among the regional countries. 

Kenya Ports Authority (KPA) has attributed the negative performance on transit cargo to a drop in handling of freight meant for Uganda and Rwanda at the facility as a result of restrictions in both nations from the Covid-19 pandemic. 

Source: Sendy Blog, August 6, 2021.

Rwanda diverts its cargo traffic to Dar Es Salaam Port.

Rwanda has become the latest landlocked country in the East African region to move its cargo traffic from Mombasa port to Dar Es Salaam. Rwanda’s president hosted Tanzania’s president Samia Suhulu Hassan for a two-day trip that was largely focused on easing trade relations between the two countries.

Details of discussions and bilateral trade agreements between the two Presidents are yet to be made public, well-positioned sources speculate that on the agenda was plans to improve trade logistics.

Rwanda and Uganda have faced icy relations over the last three years and with Kenya in the midst of uncertain elections, Rwanda has had no option but to seek logistical dependence on Tanzania.

Source: The East African August 7, 2021.

UK-Kenya sign agreement to ease trade & logistics between the two countries.

The Institute of Export & International trade recently signed an agreement with TradeMark East Africa to create a digital trade corridor between the United Kingdom and Kenya. 

Aptly named the ‘UK-Kenya Trade Logistics Pipeline’ (TLIP), a memorandum of Understanding was drawn and signed at the Kenya High Commission in London.

The belief is that this agreement will create reductions in administrative procedures, time to export and import, order turn around, compliance costs etc. 

Source: Institute of Export & International Trade July 26,2021.

NCTTCA praises Member States for Effort on Transport Systems.

The Northern Corridor Transit and Transport Coordination Authority (NCTTCA) council of ministers sang the praises of its member states for their commitment and dedication of resources towards the improvement of transportation infrastructure projects.

Notable progress has been made in the transport sector of the region including but not limited to road transport networks , dry ports and inland container depots, one stop border points, standard gauge railway and oil pipeline.

There has been emphasis on the northern corridor region, its transport route and the role it plays in promoting regional and international integration. 

Source: Kenya News August 7, 2021.


Freight Rates: 

Container Shortage to go on for another year. 

Shortage of containers is unfortunately a problem that is projected to persist for at least another year. High consumer demand and port congestion have played a pivotal role in this predicament. 

Supply-chain experts have observed the high rates leave many shippers, particularly those with relatively low-value goods, with paying premium as the only sensible option. 

Customers and shippers alike are dealing with the outcome as there is a container shortage globally. 

Source: Sendy Blog, August 5, 2021. 


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Sendy