Freight Market Updates

Weekly Industry News: Aug 23 - Aug 29

July 29, 2021
August 30, 2021
Containers being offloaded at a ship at the Port of Mombasa. A container shortage is expected to continue to next year globally on the back of disruptions caused by the Covid-19.Photo KPA

The Kenya International Freight and Warehousing Association (KIFWA) Seeks to establish a presence in Kisumu. 

According to George Ochola, (associate board member of KIFWA) “the launch of a branch in Kisumu comes at a time when the city is growing and presents a need to tap into new opportunities for the locals which must be harnessed to improve their lives.”

Kisumu recently made some developments with the opening of Kisumu Port and Kisumu International Airport, in a region that sits within the Lake Region Economic Bloc (LREB) this could be an opportunity to tap into agricultural production and work towards exportation.

Source: Capital Business August 30, 2021.

China Port Closure Affects Kenya’s Import Costs.

Congestion at Chinese ports due to the partial closure of the world’s third busiest port has had its effects seen worldwide, import costs are feared to surge in Kenya. 

The port in China shut down due to a reported covid-19 case of the delta variant kind at the Meishan terminal at Ningbo port. The situation has already forced many traders in the global supply chain to source goods from alternative costlier markets.

If the situation persists, manufacturers might be forced to turn to other markets and this could see the cost of shipping up further. 

Source: Business Daily Africa August 26, 2021. 

Union Issues in Tanzania set to be Resolved.

Ministers and Permanent Secretaries from the Union government and their Zanzibar counterpart met to discuss the several issues facing their country, its economy and citizens. 

Tanzania already proved its ability to resolve issues by tackling five Union challenges for the major purpose of strengthening the merger between Tanzania Mainland and Zanzibar.

Landing fee at Dar es Salaam port for cargo from Zanzibar was also a contentious issue, as it was argued that it was high (11,000 TSh) while the fee for cargo imported from abroad was low (4,000 TSh). This was tabled as another union issue to resolve.

Source: All Africa August 23, 2021.

Cashew Season to be affected by Container Shortage. 

Cashew nuts marketing season is around the corner and it comes at a time when there is a looming worry about shortage of shipping containers due to the global crisis currently being experienced by the freight industry. 

Scarcity is noted to have stemmed from the impact of the blocking of the Suez Canal by a giant container ship, the Ever Given, for several days early this year.

Tanzania benefits a great deal economically by the export of Cashew nuts annually. 

Source: The Citizen Tanzania August 24, 2021.