Importers to Pay More as Freight Operators Hike Prices
Importers in the country encounter increased freight charges as cargo operator’s work to compensate for reduced goods from Europe and Asia.
The significant increase of freight charges has also been catalyzed by the closure of South Africa, Lagos and Abuja airspace, Africa’s major hubs for cargo flights from Europe to Nairobi.
Currently, importers part with Sh1,000 for a kilo of freight from China to Nairobi from the previous Sh200 due to the sharp load reduction.
Nigeria and South Africa, are on total lockdown, baring international cargo, and flights, making the airline cargo carriers unable to cut their operation cost for the less load to be transported to Kenya Directly.
Previously, dropping the cargo in Nigeria and South Africa cities were much effective in minimizing cost.
Sluggish business in the country has also seen major freight carriers seize operations to Jomo Kenyatta International Airport with various operators citing empty flights from Europe and other cities, meaning they make loses by flying to Nairobi.
Therefore, the only way they can cover for the cost incurred is by raising cost charges.
The International Air Travel Association (IATA) has already projected that airlines will make huge losses in 2020 because of the virus.