1. China is now the biggest source of foreign direct investment (FDI) in Kenya, accounting for over half of all FDI in the country. It has enabled Kenyan companies to access more capital, technology, and expertise from China, as well as access to new markets.
2. Chinese companies have invested heavily in infrastructure projects in Kenya, such as roads, railways, ports, and airports, helping to improve the country’s transportation networks.
3. Chinese investment has also enabled Kenya to develop its industrial sector, creating jobs and boosting the local economy.
4. Chinese companies have also set up factories and production facilities in Kenya, providing employment opportunities and generating much-needed revenue.
5. Chinese tourists are increasingly visiting Kenya in large numbers, bringing in much-needed foreign currency and helping to boost the local tourism industry.
6. Kenyan exports to China have increased significantly in recent years, with tea, coffee, horticultural products, and other commodities faring particularly well.
7. Kenya has also benefited from the increasing number of Chinese companies looking to establish a presence in the country, creating more jobs and investment opportunities.
8. Chinese companies have helped to create thousands of jobs in Kenya, with a large number of Chinese nationals moving to the country to work in Chinese-owned companies.
9. Kenya is becoming an increasingly attractive destination for Chinese investments, with the country ranked as the third most attractive destination for Chinese FDI.

The China market has been a great benefit to the Kenyan market. The Chinese have invested heavily in the country as a result of their strong economic ties, and this has led to the creation of jobs and improved economic growth. The Chinese have also played a major role in the development of infrastructure in Kenya, including the construction of the largest airport in East Africa, and the expansion of the railway network. Additionally, the Chinese have helped to increase the level of foreign direct investment in the country, which has opened up new opportunities for Kenyan businesses. All in all, the China market has been a great boon to the Kenyan economy, and Skywing Logistics Ltd is committed to helping Kenyan businesses take advantage of this economic opportunity by providing efficient and reliable services for shipping products to and from China. Skywing Logistics Ltd is proud to be part of this success story.

Increased storage costs

Increased competition in the sector is also forcing shipping firms to tap into digitization in a bid to improve efficiency and productivity to pass on the cost-benefits to their clients.

Shipping firms have also decried increased costs including delayed verification of cargo containers by the Kenya Revenue Authority (KRA) which sometimes takes weeks leading to increased storage costs by the companies which pass the costs to importers.

Last month, shipping companies revealed that the taxman had moved to charge importers of consolidated cargo to pay taxes and levis based on the transaction value of the cargo as opposed to a standard charge of Sh200 per kilogram.

“There is an increasing need for seamless flow of goods in the global supply chain and digitization is the key enabler to shipping companies.  Currently, the shipping industry is facing challenges brought about by new regulations from the regulatory bodies in Kenya,” said Mr. Yakub.

Higher freight charges

“The impact of these changes has been felt by the consumer in the form of higher freight charges, slower shipping process, and delays, as well as a backlog in the port. As a result, many customers are opting out of shipping as the costs are no longer manageable,” he added.

The performance of the transportation and storage sector improved significantly in 2021 following the easing of restrictions that had been instituted by the government to curb the spread of the Covid-19 pandemic in 2020.

The total value of output from the sector rose by 16.7 percent to Sh2.29 trillion in 2021, according to the Economic Survey 2022 released by the Kenya National Bureau of Statistics (KNBS).

“Currently, the shipping industry is facing challenges brought about by new regulations in Kenya,” Skywing Logistics Ltd CEO told the Star. His sentiments are shared by a Nairobi-based importer Catherine Wairimu who says the changes have significantly affected her business. “Unfortunately, this has made me add on the selling cost in order to meet the profit margins,” Catherine Wairimu, a Nairobi-based importer said. Even so, some shipping companies are making major moves to cushion the customer through digitisation and consolidation methods of shipping.

For instance, Skywing Logistics Ltd is making it easier for small traders to ship their cargo and pay for it bit by bit as they continue to sell. The firm pays for cargo on behalf of businesses who in turn can get the goods they pay for. Additionally, small businesses or individuals can ship their goods through the cargo consolidation method whereby smaller shipments are bundled together within one container thereby allowing them to share shipping, storage and even delivery costs. This leads to minimized shipping costs, as well as decreased wait time which all contribute to increased efficiency. They are also using a tracking system to handle the logistics, carefully labeling, logging and tracking assets to prevent damage and losing cargo.

“Customers can also calculate costs digitally. This is meant to support greater customer-centricity including digital transformation, security growth and new business models,” Skywing Logistcs Ltd CEO said. He adds that the secret to ensuring that your international shipping goes smoothly is to engage a cargo company that has significant experience. According to him, an ideal cargo company will help you with everything from securing packaging your items, to filling out the paperwork, to tracking your shipment every step of the way.

Currently, the shipping industry is facing challenges brought about by new regulations from the regulatory bodies in Kenya. The impact of these changes have been felt by the consumer in the form of higher freight charges, slower shipping process and delays, as well as a backlog in the port. As a result, many customers are opting out of shipping as the costs are no longer manageable.

However, some shipping companies are making major moves to cushion the customer through digitization and consolidation method of shipping. One of these, is Skywing Logistics Ltd; a leader in the segment and one that is taking matters into their own hands. Small businesses can now ship their cargo and pay for it bit by bit as they continue to sell it.

Skywing Logistics Ltd is able to pay for cargo on behalf of businesses who in turn can get the goods they pay for. Additionally, small businesses or individuals can ship their goods through cargo consolidation method whereby smaller shipments/goods are bundled together within one container thereby allowing them to share shipping, storage and even delivery costs. This leads to minimized shipping costs, as well as decreased wait time which all contribute to increased efficiency.

Another major pain point felt by customers is when their goods get lost or damaged. This is often experienced during the process of loading goods on tracks, ships and aeroplanes. When you engage a premium cargo company such as Skyway Cargo, such experiences are hardly felt. They use a tracking system to handle the logistics, carefully labeling, logging and tracking assets as they go their separate ways, always keeping their shippers and recipients updated on the progress of the project.

The most innovative solution has been the ability to customers of calculating cost digitally. This is meant to support greater customer- centricity including digital transformation, security growth and new business models. Shipping industry continues to expand and be a solution to many businesses and individuals. The secret to ensuring that your international shipping goes smoothly is to engage a cargo company that has significant experience in getting goods to their foreign destinations.

An ideal cargo company will help you with everything from securing packaging your items, to filling out the paperwork, to tracking your shipment every step of the way. It is therefore solid to say, our Kenyan economy is heavily dependent on the shipping industry. Every small or big importation done for businesses and even individuals is a factor to the thriving factors.

The impact of these changes has been felt by the consumer in the form of higher freight charges, slower shipping process and delays, as well as a backlog in the port. As a result, many customers are opting out of shipping as the costs are no longer manageable.

“The changes have significantly affected my business as the cost has gone really high. Unfortunately, this has made me add on the selling cost in order to meet the profit margins,” says Catherine Wairimu, a Nairobi-based importer. However, some shipping companies are making major moves to cushion the customer through digitization and consolidation methods of shipping. One of these is Skywing Logistics Ltd; a leader in the segment and one that is taking matters into their own hands.

Small businesses can now ship their cargo and pay for it bit by bit as they continue to sell it. Skywing Logistics Ltd is able to pay for cargo on behalf of businesses who in turn can get the goods they pay for. Additionally, small businesses or individuals can ship their goods through the cargo consolidation method whereby smaller shipments/goods are bundled together within one container thereby allowing them to share shipping, storage and even delivery costs. This leads to minimized shipping costs, as well as decreased wait time which all contribute to increased efficiency.

Another major pain point felt by customers is when their goods get lost or damaged. This is often experienced during the process of loading goods on tracks, ships and aeroplanes. When you engage a premium cargo company such as Skywing Logistics Ltd, such experiences are hardly felt. They use a tracking system to handle the logistics, carefully labelling, logging and tracking assets as they go their separate ways, always keeping their shippers and recipients updated on the progress of the project. The most innovative solution has been the ability for customers to calculate costs digitally. This is meant to support greater customer- centricity including digital transformation, security growth and new business models.

The shipping industry continues to expand and be a solution for many businesses and individuals. The secret to ensuring that your international shipping goes smoothly is to engage a cargo company that has significant experience in getting goods to their foreign destinations. An ideal cargo company will help you with everything from securing and packaging your items to filling out the paperwork to tracking your shipment every step of the way.

It is therefore solid to say, our Kenyan economy is heavily dependent on the shipping industry. Every small or big importation done for businesses and even individuals are a factor to the thriving factors.

MANUFACTURING OPERATIONS.

Manufacturing operations follow many existing freights needs for high-volume shippers. That means you’re working within a system that can meet some of your needs immediately, but there are areas to negotiate based on your unique orders and customers. If contending with fluctuating rates is becoming a burden, consider these methods for cost control

1. Negotiate long-term contracts
2. Utilize freight management software
3. Shop Around
4. Leverage technology
5. Utilize volume discounts and promotions
6. Use fuel surcharges

1.NEGOTIATE LONG-TERM CONTRACTS. Long-term contracts with freight carriers can help your manufacturing business to lock in freight rates for an extended period of time, protecting you from the fluctuations of the market. This will also provide you with the ability to plan your budgeting and shipping needs more effectively. 

2. USE FREIGHT FORWARDERS. Consider using a freight forwarder to help you find the best rates. A freight forwarder will have access to multiple carriers and can help you find the best deal for your business. 

3. SHOP AROUND. Don’t be afraid to shop around for the best rates. It can be beneficial to compare rates between different carriers, as they offer different rates for different lanes, as well as to look for discounts or special promotions that may be available. 

4. LEVERAGE TECHNOLOGY. Technology can be a powerful tool for reducing freight costs. Use technology to automate processes such as freight tracking software and automated shipping systems to help them manage their shipments and costs. 

5. UTILIZE VOLUME DISCOUNTS AND PROMOTIONS. Many freight carriers offer discounts and promotions to their customers in order to increase their business. It can be beneficial to take advantage of these promotions in order to lower your freight rates. 

6. UTILIZE FREIGHT MANAGEMENT SOFTWARE. Freight management software can help you to track and monitor freight rates in real time, giving you the advantage to take advantage of lower rates when they are available. This will help you to stay on top of the market and make informed decisions about your shipping needs. 

7. USE FUEL SURCHARGES. Carriers will often add a fuel surcharge to shipments. Companies should use this to their advantage by negotiating a fuel surcharge that is low