Kenyan exporters are feeling the pinch as shipping costs sharply increase, disrupting trade and cutting down profits amid rising tensions in the Middle East.
The spike in freight charges has significantly slowed exports, with businesses warning of major losses as transport options become limited and more expensive.
Industry players say the situation has worsened in recent weeks, forcing exporters to scale down operations and seek alternative shipping methods.
Exports Drop Sharply
Some exporters have reported a drastic decline in business, with operations falling far below normal levels.
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One trader noted that exports have dropped to under 15 percent of usual volumes, and even lower during the Ramadan period.
The slowdown has raised concerns about the sustainability of businesses that rely heavily on international markets.
Airlines Reduce Operations
According to logistics experts, reduced airline operations in the region have worsened the situation.
Many exporters are now forced to depend on expensive cargo charter services to destinations such as the United Arab Emirates.
This shift has significantly increased the cost of doing business for Kenyan exporters.
Freight Costs Double
Shipping costs have more than doubled in recent weeks, dealing a major blow to traders.
Freight charges that previously ranged between $1 and $1.50 per kilogram have now jumped to between $3 and $3.50 per kilogram.
Airlines have attributed the increase to higher insurance premiums linked to instability in the Middle East.
Businesses Brace for Impact
With costs rising and demand fluctuating, exporters are now adjusting their strategies to stay afloat.
Some are scaling down shipments, while others are exploring new markets or delaying exports altogether.
The situation remains uncertain as tensions continue, with businesses hoping for stability to restore normal operations.
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